Home Buying in 48206>Question Details

M. Cox, Home Buyer in Detroit, MI

Home was listed as short sale approved, now the short sale bank has countered my offer for more than I can afford and we have paid for inspection

Asked by M. Cox, Detroit, MI Fri Dec 7, 2012

and appraisal. Can we recoup the fees from the listing agent

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Eric Michael’s answer
There are very few circumstances where you're able to get a refund on an appraisal and/or private home inspection.

Sometimes your lender will give you a credit for the next appraisal, but you'll have to talk to them about that.
0 votes Thank Flag Link Wed Dec 26, 2012
Could be that a short sale was approved based on the fact that the owner qualified for a short sale. When a contract is written on a short sale listed home, not only does the terms of the contract have to be accepted by the seller's lender but the actual seller of the home has to often qualify to even be granted a short sale. It is interesting how each area has a different method. We normally do inspections and appraisals after acceptance since it could take 3 to six months to close and the condition of the property could change. Sometimes, a buyer will go in and do a termite moisture inspection early or a 'mini inspection' and reserve the right to do the full inspection and right to terminate after acceptance by the bank on all terms.

If a listing says 'short sale approved' here, i don't assume that anything is written in stone - i just assume that the seller has received approval to participate in a short sale.
0 votes Thank Flag Link Sat Dec 8, 2012
We have no idea why you had inspections performed before you received an approval for the short sale bank. What has happened to you is the very reason that the approval must be received first and money spent on approvals later.

Again, we don’t know the details of your specific situation.

Talk to your agent about the wisdom and risk of having the inspection done. Perhaps a chat with his broker is also needed. If the agent and broker expect to eventually earn a commission for helping you to buy a house, maybe they need to step up and…
0 votes Thank Flag Link Fri Dec 7, 2012
Talk to your agent . Has your agent prepared a market analysis to justify your offer? Counter back at an amount just over your original offer. Prepare a letter explaining why you offered this price. Don't give up.
0 votes Thank Flag Link Fri Dec 7, 2012
Discuss this with your agent. You can counter offer the banks counter offer so things may still work out for you. If not, sorry but you are out the cost of the inspection :(
0 votes Thank Flag Link Fri Dec 7, 2012
There are very few scenarios where a short sale is approved prior to securing a buyer. I see properties positioned that way quite often, and even showed one today that claimed to be exactly that ... but the long and short of it is it probably is not the case. I explained that to my clients today that it does not necessarily mean a thing.

I won't comment on the rest of your question, as it is up to you and the agent how you all want to handle that, if at all. There is always a risk in pursuing a short sale including out-of-pocket expenses. Hopefully you can get it resolved.

Good luck.
0 votes Thank Flag Link Fri Dec 7, 2012
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