The engineer’s report wasn’t pretty:
“There are some drainage issues … resulting in water pooling … subsequent water intrusion …. Cracks in slab also observed … Total Estimate for repairs … $8340.”
The buyer didn’t have the funds. The seller hadn’t made a mortgage payment in months and couldn’t afford the repairs either.
The short selling bank’s asset managers answer was typical:
”Buyers should understand that this property was marketed, priced and sold As-Is”
But, the cat was out of the bag
Fine. Cancel the contract. Find another buyer. But you now know the exact extent of this major issue, which means you have to tell that next buyer this bad news too…
Or, Mr. Asset Manager, you can approve these repairs, get the work done, and sell to our buyer who’s still willing to buy.
It took them nearly a month to say Yes.
Selling a house “as is” means the buyer gets what they see. Ugly, dirty, needing some love. Selling a house with a known $8,340 structural issue, that’s a different story.
Even if a new buyer had 50% down payment, perfect credit, and millions in the bank. The bank loaning the other 50% would require it be fixed prior to purchase.
The only way to sell this house without dealing with the repair would be to get an all cash buyer. And they’d want the price reduced way more than $8340 so they could afford to do the work and then sell it at a profit.
The Asset Manager finally came to that conclusion, authorized the repairs, and Erin got his house. All fixed, and has never had an issue since.
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Information accurate as of publication date; the views, articles, postings and other information listed in this section are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation. The material in this section is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors.Tue, 2016-02-02 07:07