57 page repair request after getting the Indymac HAFA Short Sale Approval, 6 mo's later
I tried to disclose and I got inspections and shared findings, I tooke pictures of repairs and uploaded them to MLS, I even encouraged buyers to do their inspections while waiting for approval and offered to pay. The MLS disclosed it is a fixer-up and even sellers pointed out areas in need of repair. Then the sellers vacated residence and gave permission for buyers to see property or inspect whenever they wanted. Well here we are with are "as-is" approval after 6 months and the buyers went to do their walk through inspection and produced a 57 page repair request when the only thing needed to close at this point is the appraisal, Certified HUD and Wire. Naturally the lender won't even consider it, making reference to their approval terms. How much more could I have disclosed to these people or to anyone, without hurting my sellers?
We had a counter and an addendum to contract that clearly stated no repair request will be honored or considered.
Comment
-
Comment by Judith Crawford on May 15, 2011 at 4:00am
-
I am extremely clear with buyers of short sales----you can do all the inspections you want, within a very short due diligence and after that they are buying the property "AS IS, NO WARRANTIES, NO GUARANTIES, NO REPAIRS, EXPRESSED OR IMPLIED". That is why it is priced the way it is --the defects are considered on pricing. When dealing with the lender- we send them the CMA, and the defects list along with the short sale package prior to offer. EVERYONE Knows property condition including the lender. the only caveat is that "if" the property condition "changes" from the time of contract submission--- then the buyer has an out. I ran this by the leagal team and the contract language is time sensitive. The buyer is making the offer based on condition of the property at the time of the contract offer---that means "AS IS" at the time of contract offer. If vandals steal the HVAC units, spay paint the house with graffiti, rip out all the cooper plumbing, and make off with any appliances etc, etc, then the property has "significantly" and materiallly changed. Trust me, this happens all the time due to the Lenders inability to perform a short sale in a timely manner. It is in the lender, the seller and the buyers interest for lenders to get their act together and be time efficient. The faster the short sale the less time for things to go wrong.
-
Comment by Jim Schneider on May 11, 2011 at 11:07am
-
Melissa,
I was discussing this very problem while presenting how to process short sales to our sales staff today. Buyers typically want to wait until after the short sale is approved to do inspections, and of course the seller wants them done upfront. If there is that much of a condition issue, I'd require the buyer to have the inspection and pass up that contingency right away, here the first five business days after contract are for inspection and attorney modification. Then there's no crying later. I'd be reluctant to work on a short sale for 3-6 months if the buyer still can drop out of the deal, even if the price is agreed to.
If you were 5 days in and the buyer wants a price drop for issues that were not obvious, you could just write a new contract with that price, and submit the offer along with repair estimates. 5 days wasted instead of 90.
At this point, can the buyer legally walk? I'd check with the seller's attorney, hopefully you're going to tell us there was earnest money!
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons
You need to be a member of Short Sale Superstars to add comments!
Join Short Sale Superstars