Need insurance for a building with an old roof ASAP!

[Julius Jones]

I am 90% through the entire process of purchasing my first 2 properties, but I have hit a MAJOR hurdle.  While performing the inspections, we found out that the roofs are old and needs to be replaced within the next 3 years.  My plan was to fix both roofs within 12mths.  I did not believe this would stop the sale, until the lender refused to honor the loan, until I fix the roofs on property that I do not own. The seller reduced the price of sale, but will not replace the roofs; placing me in a position of chasing my tail.

I've searched for insurance companies for the past 4 days, to no avail.  They've all stated that I cannot receive insurance until I fix the roofs, but I also cannot receive the loan to purchase the property either.  Are there any Insurance companies willing to insure properties with an aging roof, long enough to be fixed within 2 months?

[Jeff Willis]

What you can do is escrow the funds to replace the roof and/or get a surety bond to guarantee a replacement and make the roof replacement part of the closing agreement. That will satisfy some lenders. If the deal does not close, you get your escrowed funds back and if it does close, the funds go towards replacing the roof. This is not uncommon. I did it recently on a home that required major mechanical renovations. If the lender does not accept it, you will need a bridge loan.