Appliances After Closing

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    Hello. I would like to speak with someone who has the ability to review my situation, actual facts and circumstances presented in this post and have the authority to make exceptions/ decision based on the below information and not just what was found in a procedure book. I am not interested in speaking to someone who only can blindly follow a procedure that doesn’t seem applicable to me.

    I have funds for roof repair escrowed into my loan. The seller provided concessions in the amount of the roof replacement. The repairs are escrowed into the loan and the concessions are being used for an interest buy down.  My hand specialist also included contigencies and hand fee for the cost of the rehab. I have no issue with that.

    In addition, the appliances are not working. The seller has provided what is listed as a “seller repair credit” for the replacement of appliances specifically for the amount of $2,000.

    I was advised during the Hand Repair and Escrow Rehab Guidelines Webinar that I can’t get the appliances until the roof rehab has been addressed.

    I am trying to understand, that if the seller has provided a “seller repair credit” in the amount of $2,000 specifically for appliances;  why must I wait for the roof rehab in order to obtain the appliances? This amount should  be separate from the roof rehab. Why can’t I provide a work order invoice or some other document from Lowes, home depot or wherever and submit it for payment for the appliances and it get processed? I should be able to get the ball rolling for these appliances as soon as I close on the home.

    The appliances in the home is non wrking and did not pass inspection. They must be replaced and was indicated as such on the inspection report. I feel that a home is not liveable if there are no useable appliances in the home. I am set to close on Monday August 31st. No one advised me prior that I can not get the appliances until the roof has been addressed. It is bad practice to be informed something so critical this late in the process. 

    I would like to add that I already have a bid and naca approved roofer/contractor for the roof repair. The roof contract has been signed. The roofer has uploaded its estimate and credentials though naca. However I was advised that this is irrelevant as well and this whole process will need to be done again after closing.

    I would like to speak to someone who can discuss this with me. What was explained to me seem illogical and unreasonable for my situation.  The situation being the seller providing a credit specifically for the appliances however I am unable to access this credit without addressing the roof first. 

    This credit is visible on my scope of work. However I was advised that the scope of work that was provided to me by hand is not the same scope of work that they are referring to for rehab after closing. And it is not applicable for this situation.

    I am looking for a resolution that is more in my favor as opposed to immediately paying for a home that I cant even live in right away due to non working appliances and the lack of ability to obtain new appliances without the roof being addressed due to inapplicable procedures. If I was alone, I might could go without appliances for a while but becuse I have a family. Living in a home without appliances and eating out for every meal 7 days a week for a family of 5 for weeks will get extremely expensive very quickly.

    The documents I am looking at is as follows:

    – Scope of work and Final Rehab Budget provided to me by hand on August 21st 2020.

    -Revision summary provided to me by hand on August 21st 2020.

    -Every addendum and contract with the Seller that addressed the appliances.

    I would also like to add that the rehab webinar I attended did not address procedures for obtaining appliances at all. Why is this procedure left out? I dont know what I have to provide. What I should ask for. Where I can go. If I can buy and just submit receipts afterwards and be reimbursed up to the credit amount. Or even what not to do so there arent any hickups when trying to get this done though the escrow/rehab. 

    I just want to be clear. I am not trying to use left over funds from the roof repairs to purchase appliances. I am trying to use the credit provided for me specifically by the seller to purchase appliances as soon as I close.

    If I didnt say the correct procedure or have used the incorrect terminology; I apologize. I am not a hand employee and am not familiar with all of the verbage/terminology/procedures an employee would use on a daily basis. I am also aware that sometimes if you dont say the “magic word” an employee will act like they do not know what you are talking about to be helpful and just go back to a script in a procedure book instead of trying to understand the issue in full. So please forgive my ignorance in the matter and try to understand the concerns I have provided herein.

    I sent my request for help and to discuss wth someone via email but more than 48hrs has passed and I havent heard from anyone.

    I look forward to hearing from someone who can help me.

    Thank you for your time.


    Based on your first paragraph you won’t get what you’re looking for here. This forum is largely for members to help and encourage other members. There are a couple of moderators who actually work with the naca operations team who can confirm or deny procedures based on what the written rules actually are but the person you need to speak to is not on this forum. You need to speak directly with your hand coordinator who is the only person who is qualified. The moderators do have the ability to look into your file offer advice and escalate it if necessary.

    With that said here is my take. You cannot and will not be approved for a loan on a house that doesn’t meet hands health and safety standards. A roof would fall into that category. I’m just taking a guess but because there is a possibility you spend out of your pocket (either because you go over 2000 or because you get reimbursed after purchase) they don’t like that. You can’t use your own funds unless it’s already allocated in the escrow. And if the roof doesn’t pass inspection then you can’t buy the house as it stands and the seller can potentially walk away with the money you spent. I think if you renegotiate the seller credit or just negotiated in the first place for the seller credit to just be the seller replaces on their own you wouldn’t have a problem.

    • This reply was modified 1 year, 3 months ago by Nelsont.


    Im a lil confused by your statement. I got approved for a loan on the home and am scheduled to close this upcoming Monday. I really only wanted to talk about the appliances but chose to talk about the roof because it seem like no one could even begin to answer my question unless I talk about the roof.

    When you mention “inspection” are you talking about the home inspection or the roof inspection after the roof has been replaced? The roof is very old and didnt pass the home inspection which is why there is a rehab.

    The appliances didnt pass the home inspection because their main function does not work at all. Meaning, the microwave will display time but will not microwave. The eyes on stove cant be turned on or off. The moment the stove is plugged in, eyes turn on automatically and are red hot and will not turn off unless you pull the plug or switch the breaker.

    So they dont like it if I go over the seller credit of $2,000 for appliances. They also don’t like for me to be reimbursed for the aplliances up to the $2,000 if I purchase them my self and the purchase amount exceed $2,000?

    So your saying I cant use my own money unless I provide it during closing so it can be put in the escrow? Im not even sure how that would help. Perhaps I misunderstood your statement.

    I tried to negotiate to get the seller to replace the appliances but the seller refused. Just like they refused to replace the roof. It would have been easier for me if they replaced the roof and the appliances but they did not. If they did, i wouldnt even have a need to write this post. But unfortunately that isnt the case. They did however agree to provide a seller credit for the appliances and agreed to give concession up to the price of the roof replacement. Negotiations with the seller has been attempted and the above paragraph is the results. Im not sure what more could be negotiated.


    All work performed needs to be approved by hand. I’m assuming the roof isn’t yet complete. If I assumed correctly then even though you might close next week your official approval won’t happen until after HAND determines the roof was repaired sufficiently – meaning you can close without being able to move in. Also meaning, if my assumption was correct, you are trying to buy things for the house yourself before you are officially cleared to own it. Again this is all if what I’m thinking is correct but in that case you are trying to do things backwards. This is not a naca thing. It is a federal law which prohibits banks from allowing buyers to use their own funds for household purchases before you take possession. Understandably it’s like splitting hairs. Rolling appliances into the loan is OK as long as it part of the approved rehab. Having the seller buy the appliances is OK. A seller credit on the basis the buyer is making the purchases is only OK if done after clearance to take possession. You will close and still not have clearance to take possession. That is my take.


    The title clearly states they are trying to buy appliances after close. Not before.

    – are the appliances listed as a required repair or wishlist?

    I ask because NACA would make sure that the required repairs is completed before getting “wishlist” items and appliances.


    That is some great information that I was not aware of or explained to prior. I assumed that when I close I would take possession of the home. In addition to my assumption of taking possession at closing; I would be able to purchase things for the home like blinds, curtains, appliances. However, If I am mot allowed to take possession of the home after closing wouldn’t I be informed of this prior? It would make sense that I would be informed of this especially if leases are ending and a buyer is trying to coordinate the end of their lease and moving into the home. It appears that we may be homeless for some weeks as I was not informed of this.

    If my memory serves me right, which it probably doesnt, but if I am unable to obtain possession of the home after closing wouldnt there be a 0.375% reduction in the interest and 6 mos or so added to the mortgage? (That percentage or number of months may not be accurate as I am saying it from memory). I did not see that percentage or duration applied on any of the documentation I have.

    As a side note. The roof is old, is missing lots of granules and has met its expected lifespan of years but its not leaking. Nor missing shingles. Could it be that because of this no one mentioned that I would not be able to take possession?

    I never knew about posession as you mentioned above. But my assumption would be that one could live in the home while the roof is being replaced or needing replaced. As most people do not vacate their home when their roof needs replaced unless there is extensive damage like a tree fell throught it or something.


    @purdynerdy The appliances are listed as a required repair. I have no wishlist items.


    @TAdams – then you should be able to get it taken care of. Perhap HAND is missing that point and assume it’s wishlist.



    Thank you. Hopefully I can get in touch with someone to discuss it. I have not heard back from anyone yet. Its been 3 days.


    Good question. Without knowing the fine details of your situation I can only speculate. Yes I would imagine if you cannot take possession immediately you would be notified. I find it hard to believe you were given the clear to close without final HAND clearance if you are not rolling the cost of the roof into a rehab loan. You can get some things waived and maybe the roof was??? It all comes down chronology of events. If you close and take possession on Monday does it really matter if you have to wait till then to buy the appliances?

    And you’re right. Most people don’t vacate if their roof is being repaired. However most people are put up in hotels by their insurance provider if their roof is in enough disrepair. And almost no bank will allow a closing of a house with a roof in bad enough shape without factoring the repair into the deal.

    Here’s an example. I once bought a house through FHA about 10 years ago. I was scheduled to close on a Tuesday. The Friday before the bank (Wells Fargo) said I cannot close without fixing the front and back door. The front door stuck a little and the back door had a old glass door knob. You would think this is something they would come up with well before the 3 days until closing mark. Nonetheless something as simple as that prevented me from taking possession immediately.

    Damien Smith

    Greetings @Tadams,

    I am very sorry to hear about the situation that you are currently going through. I hope that I can be of assistance to help to address your concerns with this process. NACA is a unique program that is all about our members and protecting their interest even when the members are not aware that NACA is protecting them! I am not sure if you remember the HAND’s inspection report analysis that you received was divided into two categories which was required and recommended. The required must be done then next the recommended and lastly your wish list can be completed if you have any items in that category and the funds available. The HAND department’s prime directive is the health and safety of the member. Once you close, your process is not complete. Your closing was/is contingent upon completing those health and safety concerns first then any other options after that in the order of required, recommended, and then the wish list. If the HAND department were to allow you to complete the purchase and installation of the appliances first and the roof was repaired next and for some reason it goes over budget and there are not enough funds from the loan, seller or member funds to complete the roof which is a health and safety concern then your home could be in jeopardy of the possibility of bank foreclosure on your home as those required repairs are a condition of you being allowed to close but then complete the necessary required repairs first. I know this might not seem fair to your or even right however this is the process. I hope this helps and again I am sorry for the misunderstanding of the process or the lack of clarity! Enjoy your home and congratulations on your home ownership journey!

    Working for you!,

    Damien Smith
    Online Operations, NACA



    I have final hand clearance.

    The cost of the roof is rolled into the rehab.

    I have no interest in purchasing appliances until I close.

    I was told during the rehab webinar that I could not get appliances until after the roof is taken care of.

    The appliances are not on a wishlist. It is listed as a required repair on the SOW.

    I hope that clears up everything.

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