Tony Iagnemmo, Home Seller in Urbanna, VA

How long does it take for the bank to counter an offer? If the condition of the property changes between now and settlement, what are my rights?

Asked by Tony Iagnemmo, Urbanna, VA Wed Feb 6, 2013

I have written a contract on a short sale and was told the loan is through Lending Tree. The property has a bad roof that is leaking, there will need to be some mold remediation. I plan to make this property my primary residence, have agreed to put down 60% of the sale price and pay my own closing costs. I offered 6.5% less than the asking price. My contract was passed over for a higher bid. When the first buyer found out the extent of the damage he pulled his offer off the table. The seller's agent contacted my agent and asked if I would still be interested. I was not asked to revise my offer and the bank appeared to be receptive. The bank has asked for a HUD-1 and has been communicating with the sellers agent-- still no contract. They bank has taken the property off the market and are not showing it at this time. The Central Scheduling Service indicates that there is an offer. Meanwhile the roof continues to leak.

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Hi marmathis502, consult a Real Estate Attorney
0 votes Thank Flag Link Sun Feb 10, 2013
I would ask your agent to call the listing agent in regards to this. In a short sale situation there is usually an "AS IS" addendum you sign. Was this addendum in your offer? This means you can have inspections on the home for your informational purposes but the seller will not make repairs. Typically in a short sale it takes atleast 60 days for a bank approval and nothing can move forward until that approval happens. Once approval of the sales price is accepted by the bank you can move forward with your loan and/or settlement if this is a cash deal.
0 votes Thank Flag Link Thu Feb 7, 2013
Thank you for your reply. It appears that you were the only one that read my question. I have already taken care of the "AS IS" portion of the contract. I gave the bank a 5 page report with pictures as to the condition of the property and a budget to make the repairs. I have given the proof of funds and will have no trouble making it happen. The time line concerns me a bit. Would it be appropriate to inquire if the current owner would allow me to make the simple $200 roof repair with a licensed roofer? Of course, at my own expense.
Flag Thu Feb 7, 2013
Hi Mary,

If this is a short sale, you should already have a ratified contract. The contract is between you and the seller - the bank comes into the picture because the seller will short the payoff to their mortgage holder and that bank (or banks) approves or disapproves the agreed upon contract terms. That is a contingency of the sale, but they do not sign the contract.

You should consult with your agent and ask her to work with the listing agent in getting any answers from the bank. The short sale negotiation between the bank and the negotiator could easily take 4-6 months or more before an approval is issued. Your agent will help you with your options if the condition of the property worsens during the process. Good Luck!
0 votes Thank Flag Link Wed Feb 6, 2013
Hi Mary,

The bank response time varies in terms of either, accepting your offer or countering. The terms of the contract will dictate who is responsible for what. If it is a short sale the seller still owns the home.

Good luck and I hope you have a speedy response.
0 votes Thank Flag Link Wed Feb 6, 2013
Hi Mary,

Your contract should spell out the terms of property condition. Did your offer for the home contain an "as-is" clause? Your Realtor should be able to guide you on the terms of your specific contract. If this is really your house and the roof leak can be mitigated by something inexpensive (like tarping it), that might be worth your while.
0 votes Thank Flag Link Wed Feb 6, 2013
Thank you for your suggestions. Yes, I have mitigated the roof repair. I plan to replace it the day after settlement. I object to paying for roof repairs without a signed contract. That is why I specificatly asked about how long it takes for a bank to conter an offer. If it will take 6 month to do the deal then the property could be in such disrepair that it's not worth the trouble. Nothing else on the market I am interested in though.
Flag Wed Feb 6, 2013
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