I have a B of A, FHA short Sale.  The seller is out of the country and the house is vacant.  I noticed that around the middle of December the 2 A/C units had been stolen.  The seller has maintained his home owners insurance so we called and filed a claim.  We also filed a police report.  Seems that this is happening a lot in this particular area lately. 

Just found out yesterday that the insurance company denied the claim because of a provision in the policy about theft or vandelism while the property is vacant.  The property is under contract waiting Short Sale approval with a buyer that is getting a USDA loan.  So just like FHA the A/C will have to be operational at the close of escrow.  The seller does not have the money to fix it out of pocket.

Has anybody had any experiance with something similar?  Any suggestions.  I know I will have to call the bank on Monday and make them aware of the situation.

Looking for ANY feedback, suggestions, comments.

Thanks

Deb Nichols

HomeSmart

Phoenix Arizona