Lender requires repairs prior to close

[Bruce Harney]

I'm trying to buy a duplex and the seller is giving me a credit at close to replace the siding of the building. The lender is stating the repairs need to be completed prior to close but the seller does not want to do this. They want the lender to escrow the funds to repair the siding and distribute to contractor when work is complete after the sale.

My question: is it normal for a lender to escrow the funds and allow the work to be completed after the close?

[David Beard]

Originally posted by Bruce Harney:

It's an "A" location and buying at less than 50% of what previous owner paid. They bought during the bubble years but besides the siding there's nothing else that needs to be done.

I appreciate everyone's input.

I'm sure you know, but the "50% of what previous owner paid", while a nice fact, is still pretty meaningless, and you should be comparing to the current MV supported by several good comps. Do you have that info? Lots of properties are still worth well under 50% of bubble prices.