Home Buying in 22042>Question Details

Poa@bellsout…, Home Buyer in 36830

Can I modiify short sale contract price after inspection?

Asked by Poa@bellsouth.net, 36830 Mon Feb 13, 2012

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5
Natalie Dean’s answer
I am in full aggrement with the other answers and Brian Gormley is right it takes some ingenuity and flexibility on the part of all involved. As well depending on the findings in the home inspections this may impact value for the appraisal which is another strategy to use for changing the short sale contract price. It takes patience and determination but it can be done. Much success!
0 votes Thank Flag Link Wed Feb 15, 2012
I agree with the various other answers here - in fact, we just did this ourselves last week. I would just add that these deals take creativity to complete, so if the SS lender won't approve a cost or fee in one box (i.e., repairs), you must frame the deal in a way that is acceptable to them (a good life lesson for all of us, even outside the SS context). bartering other items like changes of other fee allocations and purchase price are good ways to get this sort of thing done. incidentally, as a practical matter, sellers are frequently willing to make some repairs, notwithstanding the 'as is' nature of the contract, given that they are more motivated than anyone to sell their home and avoid a foreclosure.
Web Reference: http://capitolshortsale.com
0 votes Thank Flag Link Mon Feb 13, 2012
Yes, you can modify the short sale contract price after a home inspection! Since short sales are sold "as is," the bank and the owner basically state that no repairs will be made. Therefore, you will need to discuss with your Realtor the use of an Addendum to reflect a new price based on the repairs or problems your inspector has uncovered. When the Addendum is sent back to the listing agent, s/he may request that a completely new contract be drawn. Hopefully, your Realtor will have a good rapport with the listing agent so that an agreement can be made.
0 votes Thank Flag Link Mon Feb 13, 2012
I am assuming you have a short sale approval letter from the bank and after that you moved forward to remove your contingencies.
Short sales are sold "AS IS". Typically the lender who had got the appraisal/BPO done on the home has accounted for the repairs if noted by that appraiser/Realtor.

You can discuss with your Realtor and have him/her speak to the listing agent.

If you want to renogiate it may take either longer time to get the new priced approved, depending on how behind seller is and where the foreclosure is on the home if they are behind the short sale lender may negotiate or not.

Good LUck
0 votes Thank Flag Link Mon Feb 13, 2012
Hi Poa@bellsouth.net,

You can try. Have your Realtor do an Addendum or a Request For Repairs (if you want the lender/seller to do the repairs). Worse case, the lender/seller says 'no'. Then you can either move forward as is or cancel contract - assuming you have inspection contingencies in effect.

Talk to your Realtor.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Mon Feb 13, 2012
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