Fund That Flip and the developer continue to maintain communications regarding the progression of getting this home sold and the loan paid off. The most recent variance meeting was last Thursday. There are many moving parts to this, all of which we would like to provide the latest information.
Variance for drainage: The initial Variance Meeting established the township needed to conduct a site visit, which occurred on Saturday August 1st. The site visit included township Variance / Board Members, engineers, the prospective home buyer, and neighbors. During this site visit they walked the property and discussed / observed two items. First, the developer's latest dry well system which was installed to collect rainwater from the house; and second, drainage issues neighbors are experiencing due to the slope of the hill these homes are on (e.g. not due to this home's construction). Neighbors are experiencing, during hard rainstorms, rainwater coming down the hill, across this property, and onto the neighbors’ properties. The township is working to solve for both concerns. The developer is cooperating, but at the same time getting caught solving for the second concern, which they believe is not their responsibility. Based on the site visit, the township requested the developer's engineer to design something that would further alleviate the issue for neighbors. The developer had their engineer draft a plan, which was submitted to the city for review. In the latest variance meeting, the city agreed to grant a temporary certificate of occupancy (TCO) if the developer obtains a $50,000 bond – in the case subsequent work is deemed necessary by the township. This bond was secured and submitted to the city on August 21st and is now in the review of the township's attorney. If the attorney agrees with the board's approval, the TCO will be granted and the buyers will be permitted to close. We expect to hear about this within the next week. In the case the attorney does not agree with the board's approval, the developer will rectify whatever the township’s attorney has a concern with.
Purchase Agreement / Buyers: The prospective buyer has a Use of Occupancy agreement in place with the developer. This has allowed them to register their children in the school system and begin moving furniture and other belongings into the home. They are closing on the sale of their current residence this Friday and continue to be engaged and excited to move into this home. Their lender is aware of the TCO and has represented they will fund based on TCO. The prospective buyer has been attending the variance meetings via Zoom, and participated in the variance board's site visit. They are aware of the situation and remain active participants.
Buyer requested updates: Roughly half of the requested upgrades are completed. Developer is indicating the remainder should be completed by the first week of September. The buyer remains very happy with what they have seen and getting these completed.
We will provide updates as available in the coming weeks. This is a complex situation and we appreciate your patience as we work towards obtaining a payoff on this property.