Wht can be done about this homebuying situation?

Let's see if I can provide some options; First your contract should state clearly, that in case of major repairs, you have the option of cancelling and retaining your earnest money. Does it? If so, then you have the choice to cancel and find another place, or try to negotiate the repairs. Obviously, the house will most likely not be financed with the major safety issues not resolved. If the house is owned by a homeowner, see if you can't work out a deal between you, to have these items fixed by licensed contractors. If owned by the lender, it should be their responsibility to make repairs. Why? Because they can't sell the house to anyone if they aren't fixed. Now they have "you" a willing buyer, even if if means you offering a tad more to entice them to get it done, you could consider doing that. So you have options, and I would have thought your Realtor would have walked you through these and maybe more.

I have personally experienced a situation where the house would not qualify for a loan, several times over the years.

First your Realtor committed malpractice by not including an escape clause in the offer. The escape clause allows you to back out without penalty or cost for inspections should the house fail to qualify for a loan by your lender.

But now, you are stuck with the offer you made. If you have the cash on hand to make the repairs, Go back to the negotiation table and ask for the sales price to be reduced the cost of making the repairs needed to qualify for a loan. Most sellers will go for a sales price reduction because they now know if you back out, they will have to make those repairs themselves before they can sell it.

If you decide to make the repairs yourself, see an attorney and make sure you have an iron clad contract protecting your interest should the seller decide to back out after you have made the repairs.

Your only other option is to quit now and hope you get your earnest money back.

Yes, officially the seller should have to fix these issues before you can buy the house. If they aren't willing to do that, you should back out because you are going to have to fix all those things yourself. You need to make sure that the seller knows about these issues and see what they say about it. But I would be really concerned going ahead with this purchase because of those problems. If the purchase is cancelled, you will have to pay for the appraisal most likely but the seller could be held responsible.

The seller needs t fix the defects and I would NOT buy the home with those defects. It is a blessing that you had a home inspection, otherwise you could end up with a defective home and no new home owner wants to pay for the defects. I would look for a different home toomany defects. Best Wishes and Happy Holidyas.

Just tell the seller that they have to fix the things listed or you will refuse to close. You'd be much better off looking elswehere if they won't make things right.

There are all GREAT questions, but questions that REALLY need to be asked to YOUR agent and mortgage lender.