Short Sale Question

I am the listing agent for a property that is under contract, supposed to close next week. After the appraiser went out to the home, she spotted peeling paint and noted it on the appraisal. Now the lender is requiring that we scrape and paint the home AND replace the gutters to eliminate flooding potential. The bank paid out 6% commission (miracle!) so I am using some of that money as I was only anticipating receiving 5%. If the home weren't to close, we would be stuck with that cost! Have you ever been in this position? The seller is completely out of money not able to help! NOT a good situation to be in...Thoughts/Input??
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June 24 2010 - US
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I just sold a short sale where the bank approved the work to be done so the deal could close.  I would ask for the commitment letter and send it to the bank to have them approve the work if possible.  What the list agent did on my deal was get bids for the work approved by the bank and the contractors got paid on the HUD-1; all work was done prior to close.  It is a really tough situation to be in if the deal goes south, if you don't have the bank on board with this issue. 
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June 24 2010
There is a lot that goes into a Short Sale and one thing I utilize when my sellers don't have the funds for repairs and is ask the buyer to look at what a great deal they are getting and it they truly want the home would they partisipate in having the repairs done so the 442 can be completed and we can move to close. 99% of the buyers I have worked with on short sales will do the work.

Good luck!
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June 24 2010
 
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