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Permalink Reply by 31cg1fw8yxswn on May 29, 2013 at 4:09pm

Definitely get two or three bids and make sure structural is inspecited...

also make sure the selling agent is notified in writing of the actual condition, that the MLS listing is updated to show termites active there...and that the lender has copies of it all.

 Disclosure issue now and must be disclosed regardless. This will probably help push things forward with at least some bending to get it closed. 

Just having the disclosure in the MLS and known by the bank makes it a bigger issue...must be disclosed no matter what kind of sale.

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Permalink Reply by Minna Reid on May 30, 2013 at 4:35am

Yes - I have. They did not give repair funds up front, but did credit the buyer for termite treatment at close. This was a Chase portfolio loan. I am thinking a Fannie/Freddie would not have been as flexible.

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Permalink Reply by Mark Sanner on June 2, 2013 at 1:02am

I had this happen with a Chase HAFA short sale. The termite treatment was paid at closing out of the seller's $3,000 relocation incentive.

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Permalink Reply by Shel-lee Davis on June 10, 2013 at 1:47pm

My experience, the short sale lenders will pay for "structural damage" but not to "kill bugs".  That seems to be the story on my short sales.  I always make it very clear to the buyer that the bank will not kill the bugs and they should write their offer accordingly.  Of course, I also have the seller get the termite report done when they list the property so we can provide that to the buyer at the time they make the offer. 

Hope you can get this worked out for your clients.

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Permalink Reply by Alexander Villegas on June 11, 2013 at 11:19am

In my experience, Chase is pretty good with crediting necessary repairs when you provide them a reasonable invoice, especially if it's a portfolio loan. Otherwise, they may need to obtain investor approval...and that can vary.

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