Posted by Jeff S on December 19, 2000 at 17:23:33:
Deal is coming to a close (3 days left), but the lender was not happy with me walking away with $15,000 at closing given as a credit from sellers for repairs to 3 of the units. They are now wanting this money to go to an escrow account, which I’m not too worried about, but I don’t like the idea of tying up this money. I have no immediate plans to repair these units, at least not until the current tenants move out, since they did most of the damage. I know how the typical escrow works for taxes, insurance, etc., but I’ve never heard of this before. What are the general requirements to withdraw money from an escrow like this for repairs? Am I now going to have to get contracters to submit bids to get money out or can I freely withdraw at a certain point? What if I want to make the repairs myself? Is there a better response to the lenders than simply saying “Ok, if that’s how it has to be.”? This kind of thing shouldn’t be a deal breaker from my standpoint, right?