If you know anything about getting a mortgage, water in basement!!! Please HELP!

So, we are in contract to buy a house. When the engineer's report was done, it said there was evidence of water in the basement, but could not determine the cause and/or whether or not there is really a problem. It also states that the evidence is the type one finds when water problems exist to a limited extent. The owner attributed it to the sprinkler system and we all forgot about it. When the bank's appraisor came in, he saw a large damp spot on the floor near the oil tank, took pictures, and put in his report: subject to determination and correct of water in basement. We haven't heard anything back from the bank, but our mortgage broker said they will probably ask for something in writing stating that either the problem has been resolved or it is not anything that would cause any major problems with the house. We had a waterproofing company come in yesterday to take a look and he said that he only sees evidence of moisture which you would find in any basement on LI. He said the only way to guarantee there will never be a problem, would be to install a french drain that would cost $7000. We are not concerned that this water is a big deal in the basement, but we are concerned about what the bank will say. Anyone know what the bank would ask for? And how we could go about obtaining what we need??? I just feel like we aren't getting straight answers from anyone about what to do. Also, the owners are less than willing to go out of there way or spend any money.

ETA: Bank of America is our bank

Message edited 7/15/2010 9:00:01 AM.

Re: If you know anything about getting a mortgage, water in basement!!! Please HELP!

Is this an FHA mortgage?

I would be concerned about water in my basement..it can cause mold.

Re: If you know anything about getting a mortgage, water in basement!!! Please HELP!

Its going to depend on the bank. Some are more picky about these types of things that others.

is this an FHA loan?

eta: both the engineer and appraiser have noted a problem. I would look into it further. Its surprising to me that the waterproofing company blew if off as "all basements have moisture". I'm in basements all the time (as an appraiser) and its pretty rare for me to see damp spots.

Message edited 7/15/2010 9:08:23 AM.

Re: If you know anything about getting a mortgage, water in basement!!! Please HELP!

It is not an FHA loan. It also seems that where there was a damp spot, there is a gutter outside that runs into low ground rather than higher ground where it can get away from the house.

Re: If you know anything about getting a mortgage, water in basement!!! Please HELP!

oh no, I hope it all works out.

I feel like every friend I know has bought a house with water leaks in the basement..must be common. Most had no idea before hand.

Re: If you know anything about getting a mortgage, water in basement!!! Please HELP!

wow your bank is being super picky.

We had a FHA loan and we had water noted in the basement due to a crack in the foundation and lack of gutters and we were still allowed to close (but we had to pain the entire exterior of the house)

We needed gutters put on and extension to make sure the water went away from the house.

tell the bank to settle the issue and inform you what needs to be done otherwise you will take your business elsewhere.

Re: If you know anything about getting a mortgage, water in basement!!! Please HELP!

We had the same problem but not as bad. The engineer commented about water in basement but the appraisal did not mention it so we had not problem closing. How big is your basement? We had a basement waterproofing place come to our house and quoted us a lot less than $7000.

We used Continental Home Loans sold to Bank of America.