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Permalink Reply by Wayne Brooks on December 3, 2012 at 6:23am

This why I do inspections before SS package submittal.  After submittal, get 3 contractor estimates for back up/justification, revise contract price, resubmit.  This is assuming some significant defect not apparent in initial showing, not just "something they didn't like" that should have been apparent before.

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Permalink Reply by Smitty on December 3, 2012 at 3:17pm

So long as this is in the beginning phase of the short sale, I don't see a problem with this.  I've submitted the inspection to the lender on multiple occasions with the new price and new HUD.  Lenders will understand if this is at the beginning of the sale.  It becomes a bit more difficult if they have submitted to the investor for approval.

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Permalink Reply by Jessica Griffith on December 4, 2012 at 3:56pm

If the property goes BOM, you'll lose more time.  Submit the updated HUD with reduced price, request for price reduction addendum signed by buyer and seller, 2 contractor bids for the repairs and a copy of the home inspection report.  

Remain empathetic to the negotiator i.e. "i hate to do this, but I know i'll run into this issue again now that I am aware of the defects"

Also, before submitting your requests, go back to other agents and see if they'd be willing to submit back up offers accepting the property as is and making them aware of the home inspection issues.  Include these responses in your request for price reduction.  Show the negotiator you're doing all you can, you're on their side, but you have no choice but to submit the buyer's request to them.  Hopefully you have a negotiator who is experienced and they will work with you.

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