Asking Wells Fargo to make repairs as part of the short sale approval
We have submitted all the documents required by WF to this point including the purchase agreement, HUD1 etc.
This home has had mold remediation done. Most of the work was in the Kitchen and now it only has 1/2 a Kitchen. We know getting new financing is near impossible on this house in its current state. So, we are asking that WF make the repairs to put the Kitchen back together.
The Buyer's offer is a very good one in terms of price and what is asked of the short sale lender.... excellent in fact.
Has anybody had any experience with Wells Fargo making repairs as part of the short sale approval? This is a $990,000 purchase price on a home that should appraise out or have a BPO of maybe around $900,000 in its current condition. The $990,000 offer reflects an incentive for WF to do the repairs. I'm just looking for anybody that has had similar experiences.
Thanks...
Replies to This Discussion
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Permalink Reply by Jim McCormack on
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Good luck with that. I have never seen such a thing. Banks won't even do these types of repairs on REO's and they own those properties. You should just submit an AS IS contract at a lower price and if that is approved the buyer can make the repairs needed to get their mortgage. The property just needs a functional kitchen to pass. If I was the buyer, to minimize the risk of spending money on the property and the sale not closing, I would just install old used cabinets and appliances and then if the short sale fails I would either remove them or leave them there. If the short sale closed I would then renovate after closing. This is not legal advice so your clients should consult an attorney.
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Permalink Reply by Kevin - Greenville, SC on
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Unlikely to happen on a Property the Bank doesn't own. The Buyer should plan on making any repairs at their expense that their Lender may require.
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Permalink Reply by Kathleen Lordbock on
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AS IS, unless the buyer wants to do something, it is theirs after all. There may well be financing available for this as well in its current condition.
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Permalink Reply by Michael Hayley on
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Im interested in what others have to say, but my guess is that your odds of success in getting Wells to advance money for repairs are ...near zero.
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Permalink Reply by Brenda Houghton on
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It is like pulling teeth to get Wells Fargo to make repairs covered by their own lender imposed insurance policies on short sales, let alone on behalf of a buyer or seller. The buyer could use hard money to make the purchase (but at a lower offer price), then refinance when the kitchen is completed. If the BPO is $900k as is, I'd suggest an offer price of $880k. The buyer could do one heck of a kitchen with $110k.
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Permalink Reply by Ben Benita on
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Short sales are always "as-is".....I would have the Buyer price that into their offer and move forward accordingly.
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