Zillow Advice: Buying Foreclosures - short sale

The assumption in the previous ...

Sat, 04 Jul 2009 03:22:00 GMT

The assumption in the previous question i asked is that the owners are trying a short sale to avoid a foreclosure for a reason rather than just walking off at this point, otherwise they would have just walked by now. And that they will eventually loose the house to foreclosure if they do not complete a short sale. Do they have some type of motivation to complete a short sale.

I would like to have someone ...

Sat, 04 Jul 2009 03:15:00 GMT

I would like to have someone clarify this concept of a short sale for me since I will now start learning about short sales and it applies to this question. Is not a short sale still a sale between the home owner(seller) and the buyer and it is not a sales contract between the buy and bank, the bank is not involved in any way in th eactual sales contract. All the bank does is say yes they will accept having the owner pay off the loan for less than borrowed when the owner sell, and the bank does this for its own various reasons. the bank has nothing to do with the actual sales contract . So my understanding is the bank has nothing to do with this problem of the owners ripping out items , this it is the same as if the owners were ripping out items on any "normal" sale. The house is due a final acceptance inspection and the buyers can cancel the purchase if the house is not in the condition it was agreed on that it would be in.
And as a stratigy to deal with this issue let the sellers know this and it is likely the house will then be forclosed on which is worse for the buyers credit. (or is a foreclosure not really much worse than a short sale so it is a meaningless tactic.)

Kent, I agree with those ...

Sat, 04 Jul 2009 00:58:00 GMT

Kent, I agree with those prior, but would suggest your problem is not related to a short sale. The problem is based solely around the contractual obligations of sellers and buyers. This happens alot in normal transactions. At this point I would suggest (without see the contract) that it is your decision to more forward with the transaction or not if the seller has violated the contract and removed parts of the property related to your purchase and understanding.

Consult your agent or an attorney.

I am assuming you are working ...

Fri, 03 Jul 2009 23:18:00 GMT

I am assuming you are working with an agent who is representing you. Depending how your offer was written, you may have the option to rescind the offer before the bank responds. I would not wait for the lender to give you an answer unless you still want the house without the fixtures/hottub.

All the answers given so far are good. Ultimately, if it is not written into the contract then it is open to interpretation. However, fixtures are supposed to be part of the house. Appliances with the exception for the stove and dishwasher, may or may not stay.

You should consult with your agent ASAP.

Good advise so far. ...

Fri, 03 Jul 2009 02:37:00 GMT

Good advise so far. Unfortunately, it is very common on short sales. Since they don't receive any proceeds from the sale at closing, some owners strip as many items-of-value as they think they can get away with. It is up to the listing agent to inform their client NOT to do so (and to remind them of the contract terms they agreed to). Of course as a buyer, these are all items you can use as "ammo" for a counter offer after the inspection report/response. Regardless, be sure to do a final walk-thru prior to closing to verify that nothing agreed upon is missing.

As part of the purchase contract, ...

Thu, 02 Jul 2009 13:45:00 GMT

As part of the purchase contract, it should be in writing what stays and what goes. The assumption is that electrical fixtures stay, hot tubs are typically negotiated. Did you, or your buyer's agent take photos of the property as you went through it? Carry a camera, or cell phone w/camera, everywhere and document everything.

If this is a concern- that more items/fixtures will be taken from the home, everyone needs to be aware of this. The price was determined by very specific terms- the fixtures were part of the terms. The listing agent, the bank, all need to be aware that the home you put an offer on- the terms of the contract, have changed.

If you don't want the property at this time, you can withdrawal your offer prior to acceptance from the bank. It doesn't appear, from what you've said, that you are without options.

If the house is torn apart ...

Thu, 02 Jul 2009 04:59:00 GMT

If the house is torn apart by the time the bank responds counter the offer. They will probably be countering your offer anyway so counter back. Hopefully you are waiting to do your inspection until after you have come to an agreement with the bank. Also ask for them to change the locks on the house. Hope you get a response in 6 weeks. My buyers had to wait 6 months to hear from the bank. We found another home while we were waiting.

Brent

In Washington state, things ...

Thu, 02 Jul 2009 03:31:00 GMT

In Washington state, things such as electrical fixtures are considered part of the property. Hot tubs may or may not be part of the property, it depends on how they are installed. In many states, window treatments are considered part of the property.

You should talk with your agent, but the assumption is that the condition of the property does not change between the offer and the closing.

Hi Kent,Did your contract/offer ...

Thu, 02 Jul 2009 03:00:00 GMT

Hi Kent,
Did your contract/offer address the hot tub and other appliances? Our contracts in Tampa, and I'm assuming in other states as well, have a space to specify what it staying with the home, such as appliances, hot tubs, even window treatments. You should have also submitted the offer for the property as-is, but with the right to inspect it so you can legally walk away if the property is not in the condition you'd like or if damage has been done to it.