To Repair Or Not To Repair

I am about to list a short sale and not only did the seller's pipe burst, but her hvac went up.  In a nutshell, she has about $10,000 in repairs. 

 

She wants to know if she should get a loan for the repairs (b/c of course she doesn't have the money) or not do the work. 

 

PLEASE ADVISE!!  I need your recommendation.

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Permalink Reply by Kimberley Kelly on February 23, 2011 at 1:56am
If she's a hardship, with no money for the home, it would make sense she doesn't have the $ for repairs.  Is she living there?  Can she continue to live there without the repairs?  I'd say save her money if possible..she's already losing the home..
Permalink Reply by Jim Schneider on February 23, 2011 at 3:43am

I agree with Kimberley,

What you should do is get written estimates of the repairs, and make sure to give copies to the agent that does the bpo. They can subtact $1.5-$2 from value for every dollar in repairs. I would submit the repairs to the lender as well, but not until you have an offer and an assigned negotiator, otherwise, depending on your state law, the lender may have cause to say that they can take over the property sooner to "protect their collateral" you go from the slow track foreclosure to the fast track foreclosure. This is especially true if the seller no longer occupies the property.

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