SEPTIC AND SEWAGE TREATMENT

I.                  Introduction  

II.               What can the investors live with?  Silly question?

III.           What are the remedies for the homeowner, builder or  developer?

A.        Refinance and take cash equity out.

B.        If purchase transaction, increase loan amount up to 100% of purchase price plus up to 107% with some investors

C.        Pay Cash for improvements to septic

D.        Small Personal Loan from bank or loan company

E.         Home Equity Credit Line on property or other properties, Builder draw on their business line of credit at local bank

F.         If sale transaction, negotiate between buyer/seller on price concessions but must be completed by close of sale

IV.           What does that mean to the contractor doing the work?

A.        Possible delay with time work completed and payment

B.        Re inspections after work done

C.        More paperwork to assure property certified company and workmanship in order

V.              What does that mean for the buyer/seller?

A.        Seller probably knows there is a problem, just added expense and more delays in closing. Could possibly jeopardize the purchase and occupancy of their new home moving into upon sale of subject property. 

B.        Buyer now has to renegotiate contract and possibly

add money to deal from out of pocket or increase loan amount which may mean higher rate of interest if the loan to value LTV is also increasing now adding PMI coverage to loan, etc.  Higher payments monthly due to higher loan amount.

VI.           How can this all be avoided? Realtors need to better educate and inform sellers of their obligations on these issues. Additionally, all of us need to keep abreast of their septic issues and county compliance restrictions where we live and where we do business.  Even adding a bedroom in most counties affects the septic system requirements and what the county will allow.  With our aging society and more families consolidating with elderly family members joining their children’s households, we all need to be more aware of what and especially WHO is going to occupy these homes.When we are buying, building and rehabbing residences the builders who are soliciting a certain demographic client for their subdivisions or developments should always be ahead of the game and look down the road for future developments in the households.

Just a little food for thought so that we don’t all get sewage indigestion down the road!

When you have a client that needs assistance in obtaining funds or wants assistance in selling or buying a home, please refer them to me at 314 808-1712.  I would be happy to consult  with them on what customized options they have available to them in their particular situation.

Donna K. Joerling

Loan Consultant

Equity One Mortgage 

And

Donna K. Joerling, Owner

The Joerling Group

Your Realtor by Choice

“Selling a Little Bit of Heaven Here on Earth!”