Replies to This Discussion

Permalink Reply by Tara Samney on June 24, 2012 at 8:46am

Are the repairs holding the appraisal from clearing underwriting or just repairs the buyer wants done? I don't see how you will get a lender paying for repairs on a short sale (a property they don't owe).  If it is holding underwriting up- be sure they are repairs that really are needed per guidelines, such as FHA, etc.  I've fought them before as overreaching and gotten it through.  If they are not holding it up and you are past inspection deadline and/or have a as-is contract then the buyer is in it to take it as-is.

Never get sucked into thinking you have to pay out of pocket.  Never do it.  You do not know it will even close.

 

Permalink Reply by Susan Neal on June 24, 2012 at 2:24pm

It depends. If you represent the buyer, you need to make it clear that almost no shorted lender and no short seller will pay for any repairs. If you already have final lender approval and are about to close, and if buyer is threatening to walk, this could turn into a big mess. If buyer can't be convinced to back off, suggest that you, the other agent, and the buyer each pay 1 third of the repair cost, just to settle the fight and close the escrow.

Permalink Reply by Pattilynn Guilford on June 24, 2012 at 2:25pm

GMAC will not approve putting repairs on the HUD after that have issued an approval letter. How badly do the sellers want this deal to work? Check with all parties including the agent on other side and make it work. Something of nothing is better than nothing of nothing.

Permalink Reply by joe beauchamp on June 24, 2012 at 6:49pm

Yes, it is definitely AS-IS, except for new things that come up after the contract - like someone stole the copper AFTER the agreement. Otherwise, the buyer  "knew" the AS-IS condition prior to making the offer.

Banks don't play that game. The more you can show that this is a new unanticipated expense, the better off you are.  Then your buyer can change the offer to make up for the expense. I have not tried this with GMAC - don't know where they stand on making any changes after approval.

Permalink Reply by Charlenia Owens on June 25, 2012 at 1:24am

Well I am a Dual Agent in this situation and the Sale is as-is, but in reality nothing is ever as-is if the Buyer wants to walk away.  The Seller does not want to pay anything and I feel stuck at this point and I have no other choice but to pay because closing is tomorrow.  I agree I would rather get something then nothing since I have been working this deal for 3 months now.

Permalink Reply by Pattilynn Guilford on June 25, 2012 at 1:34am

Its ok...closing is good. I once kicked in the same amount to help a seller who had a baby prematurely due to all the stress and baby was in neonatal. Just get it closed and shake off the dust so you can close more. You did a good job. Sometimes...its all you can do...just get paid now for all your hard work.

Permalink Reply by Charlenia Owens on June 25, 2012 at 1:42am

Thank you Pattilynn.  I will make it up on the next deal.  At least, I am a Dual Agent in this transaction so it's not too devastating for me to pay.  Would GMAC allow me to offer a credit from my commission at the closing to the buyer?

Permalink Reply by Pattilynn Guilford on June 25, 2012 at 2:08am

Not likely these days as the approved final hud is the deal and getting closed is paramount to you and your seller. No changes.

Not sure what line you would put that on anyway - the 700 block is strictly for commission although legally you can pay any sub-contractor fee in that block. 

Ask your broker to share the cost with you? :)

Permalink Reply by Charlenia Owens on June 25, 2012 at 2:12am

I am the Broker lol.  We have paid many sub-contractors before at settlment but since this is the first time I am doing it as a Short Sale I don't know if it will fly.

Permalink Reply by Pattilynn Guilford on June 25, 2012 at 2:13am

lol! Then try it on line 704 but its tricky.

Permalink Reply by Charlenia Owens on June 25, 2012 at 2:16am

Well I will definitely keep you posted lol.  Thanks for the help.

Permalink Reply by Anna "Banana" Kruchten on June 25, 2012 at 8:19am

Charlenia - congrats on getting this to closing.  And I agree sometimes you just need to get it done even if it costs a few bucks.