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Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 5436
Experience:  17 years of legal experience including real estate law.
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To Whom It May Concern: We are currently (8/6/16) under

Customer Question

To Whom It May Concern:
We are currently (8/6/16) under contract to sell our home in Colorado Springs, CO. Everything was going along just fine, until we had a devastating hale storm. Up until that point, the buyers had not had the house appraised and thus their financing not approved. We have filed our insurance claim, but due to the volume of claims in the city, our adjuster won't inspect the damage until August 13th and then determine what they will pay to repair (at this point the damage is at least a new roof and a few windows.)
The appraiser for the VA did their appraisal yesterday. As a result of this (unknown) appraisal, we are now being told that the VA (it is a VA loan), the lender and the title company require that we put 1.5 times the cost of the damage assessment (which is unknown) into an escrow account. If we say yes, and agree to these terms, it seems like a huge risk to us.
Many questions, but most importantly, if we say no, and kill this deal, are we opening ourselves up to an obvious law suit from the sellers? The house is set to close on August 26th.
Submitted: 2 months ago.
Category: Real Estate Law
Expert:  Loren replied 2 months ago.

Good evening. I am Loren, a licensed attorney, and I look forward to assisting you.

Just to confirm, you are the sellers, correct?

Is there anything in the contract which requires you to repair the damages? Is there a risk of loss provision in the contract?

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