I am trying to close on a mobile home park in Texas with an assumable conduit loan. The assumption process has been pretty convoluted, but we have been making progress. The latest hurdle is that the lender wants certain endorsements (T-19 restrictions, encroachment, minerals and T-19.3 minerals and surface damage). The title company is saying that in order to provide that endorsement, we need to do a full survey with all of the improvements and mobile homes. Now there are about 70 mobile homes. Surveyor is quoting me between 6k to 10k for doing the survey. Lender is not budging on the requirement and the title policy’s underwriter is not budging on needing a full survey with homes. Has anyone ever experience this or have any suggestions? I certainly have never seen this before.
I haven’t had this exact experience, but similar enough to say, you’ll probably have to abandon the deal if you don’t want to pay for the survey. In other words, you’re stuck. Cost of closing.
As Brandon says, you’re stuck. But then so is the seller.
A conduit loan has a defeasance clause which prevent the early payoff. Its like a pre-payment penalty on steroids.
Now is the time to ask the seller to kick in for these expenses.
After all, its their loan.
If the seller getting a novation, a full release of liability, they will be motivated.
And make sure the loan due date is well off into the future. (>5 years)
Thanks for the comments. The seller and we decided to split the cost. It is a hassle, but like you guys mentioned, I didn’t see a way out of it.