Home Buying in 33431>Question Details

John Davies, Home Buyer in Boca Raton, FL

Bank says "AS-IS" after Stainless Steel stove was stolen AFTER contract execution. Help!

Asked by John Davies, Boca Raton, FL Tue Oct 4, 2011

We viewed the home several months ago. Went to contract, and started the short sale process. After contract was signed, several months later, the stainless steel stove was stolen. We are closing in 2 weeks, and we asked if the bank would credit us $1500 for the stove. Their response is "The investor on the loan will not make any credit for repairs, etc. Property is sold AS-IS". Sure it's sold as is, but isn't that at the time of contract / viewing?

The other Realtors response when I questioned it was this:

"The bank is not responsible for the appliances as they do not own the home. That is why I have asked the seller to try and get their insurance company to pay for the loss. I will follow up with the negotiator today and see if she can be more flexible."

This seems like it could be valid, but I just do not know.

This is troubling and frustrating, we already have to spend money to get the pool back to life, landscaping, paint, etc..

Any insight would be great!

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Answers

9
In a Short Sale, the bank does not own the house. Go back and look at your sales contract, does it say that your offer includes the stove. If so, you may have a case against the seller, but not the bank. Your agent is correct with his statement. Scott is Right...If you are getting no where with people taking responsibility, ask your agent to work a deal with the other agent where the two agents throw in $500 (and if the Seller has $500, which the probably don't since it is a short sale), and you throw in $500. Things happen, don’t let it continue to frustrate you. I had to throw $1,000 towards my home, a month after purchase; because the seller lied to me...it was not worth suing them over that small amount of money. I had a contract give me a good quote because of the situation and it was all over in two short days.
0 votes Thank Flag Link Tue Oct 4, 2011
John My collegues are right when they point out there is no clear remedy ! But Tamera had
the best view : there is the idea of shared exposure between the parties gaining
financially from the sale. To the bank $ 1500.00 credit sounds like chiseling, to the insurance
company (if any) what,s at issue is value minus deductable-minus depreciation- no real help!
the seller is at this point reduced to an "owner of record " without a lot of resources.
All this said my advice is to get with your Realtor suggest hhe idea of a " shared remedy"
After all you can't live in a house without facilities In many places it's not evenl legal. So
You,the Realtors involved and the bank ,even the seller all have a stake in closing. "Pass the
hat around a little further! $250.00 a piece sounds like a possibility!
Better to resolve this now ! Canvass the players - Good luck

BOB BRUBAKER HIGHLIGHT REALTY PALM BEACH COUNTY FL. 561-876-6649


BOB BRUBAKER TREALTYP BEACH

.



.
Web Reference: http://pbc-realcam.com
0 votes Thank Flag Link Tue Oct 4, 2011
The bank does not own the house. The home owner is the seller. You need to look at your sales contract, did you write in that it includes the stove? If so you may have a case against the seller. You dont have a case with the bank who approved the sale. You have a couple of options, first teh seller may not have any money to buy another stove so that option is thin, but you could ask your buyer broker and the listing broker to each throw in $500 and each whoch gives you $1000 and you take a $500 hit but everyone is equal...
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Oct 4, 2011
John, That is too bad. Sorry that this had to happen. Too often things like this happen to vacant properties. That is why the banks and some sellers will sell the properties "AS IS." It is most important that buyers understand the term "AS IS" prior to making an offer on a propery which is being sold "AS IS." This is the job of your agent to inform you. Unfortunately with "AS IS", you get what you get. That being said, hopefully you are purchasing the home at a great price and within time, this will seem like a small loss in comparison to the savings that you gained.
0 votes Thank Flag Link Tue Oct 4, 2011
I have no great insight to give as the other answers are so right on. However, maybe your agent will work very hard on your behalf to try and get the lender to give you an additional credit on your closing costs that will help defray the cost of replacing the stove.

If that doesn't work you are still buying a home at what is probably a great price. So, think out over the long term and the years you & your family will enjoy in this property.. . and don't let the cost of a new stove stand in your way.

Good luck!!!

JOAN LORBERBAUM MOORE
Broker Associate, GRI
9858 Clint Moore Road
Boca Raton, FL 33496
http://www.boca-delray-boynton.com
joanmoorerealtor@gmail.com
0 votes Thank Flag Link Tue Oct 4, 2011
I am sorry to hear this has happened. I have had this happen to my clients before but it was a bank owned property and the bank stepped right up and replaced it because in the contract, there is a clause about the property being in the same condition or the bank can choose to repair/replace or cancel, etc. It should be the same for a short sale, but unfortunately the banks usually won't budge. I would ask your agent to keep pushing the bank and make sure they understand you are not asking for repairs, you are asking for a replacement of something that was there when you made the offer. I wouldn't take no for an answer. I am assuming you have your own buyer's agent??? If so, the two agents need to really push this and at least try and give you some kind of credit so you have a stove.

I am a buyer's agent, and in my experiences on short sales where we discover something that is crucial and the bank won't budge, we have usually been able to contribute four ways between the two agents and the buyer and seller to come up with an acceptable amount toward resolving the issue. In this case, a standard stove costs about $600. If each party pitched in $150, that would at least help you to get a new stove. Maybe the two agents would push the bank a little harder and fight for what is right for you!!! I would insist that somebody help you out here. Good luck!
0 votes Thank Flag Link Tue Oct 4, 2011
John,

Oh the joys of a short sale. These transactions can yield a good bargain if the buyer is patient, negotiates a lower than market value price with the seller and also receives a good valuation by the banks agents. However they are full of pitfalls as you are experiencing. Your best bet is to hope the negotiator for the bank allows some sort of credit but do not count on it. It is too bad that you have spent money on the home but that is why any buyer should wait until escrow closes before investing anything into the home. Many of these deals fall through for a variety of reasons and I wish you the best of luck moving forward.

If you have a favorable price on the property it may be in your best interest to move forward no matter what the bank may ultimately offer especially since you have invested funds into the property. I hope this information is helpful but if you need anything additional please do not hesitate to give me a call.



Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
Web Reference: http://www.tompriester.com
0 votes Thank Flag Link Tue Oct 4, 2011
Often the home owners are not paying the bank and they often are not paying the insurance either. They are already defaulting on the loan, why would they care if they defaulted more by dropping the insurance. Sometimes the bank picks up the insurance to protect their investment, but they might not. You are probably out of luck and just another reason to be careful with short sales. Look at it from a different way, you probably got a good deal on the house anyway.

good luck
0 votes Thank Flag Link Tue Oct 4, 2011
That sounds about right. The bank does not own the property and are not responsible for any appliances, repairs etc. It's unlikely the seller has any money to replace the stove and if they still have a valid homeowner's policy (shocking if they do) they could have it replaced if they pay the deductible. On every short sale I've completed the only concession the seller's lender has been willing to make is for closing costs and that has to be negotiated from the beginning.

I'm sorry to hear this happened to you at the last minute. Buying a foreclosure or short sale can be very frustrating and they do cost money to bring back to life - that's why the price is discounted. Good luck!
Web Reference: http://www.mysharphomes.com
0 votes Thank Flag Link Tue Oct 4, 2011
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