Robert McGuire - Denver
Your Castle Real Estate
I would recommend that yoou not put money into a short sale property unless you have closed on the property and the title to the property is legally yours. If a bank asks you to do this, I recommend telling them that you will not, and if they insist that you do it, walk away from the deal. There are many other properties in short sale or REO status that the bank will not ask the buyer to do this.
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The Seller's Lender cannot cause this to be done, and you should never under any circumstances make repairs on a home you don't own.
If the BUyer's lender requires certain repairs to be made, then that is another story. In this even, you have to work this out between your client and the other agent to get to a compromise, concession, or rebate for the repairs to be completed in escrow. Never have a client pay up front. If anything falls through you have them hung out in the breeze.
I would have to review all of the paperwork on such a transaction. I would never recommend to one of my clients to make repairs to a property they didn't own., though.
Lou Farris, MBA, RealtorÂ®, CDPE
Your Castle Real Estate, Inc.
The Colorado Deal Makers Team
First of all, i must say that I have closed almost 90 short sales in the past 12 months and I have not come across a bank asking a buyer to invest in fixing up any part of a short sale property before closing. That said, i am wondering if you have a FHA loan and upon appraisal they determined that the subject bathroom needed to be finished to meet FHA criteria before they would fully approve your loan? If that was the case, this would have been a seller obligation to fix up the bathroom to ensure that you could close on your loan and therefore the sale, ensuring that the seller potentially avoid foreclosure.
So to summarize, from my experiences it would be unusual for a lender to require you to fix up a bathroom before closing.
720 300 0889
did they answer did u close????
im in the same situation and we have not fix anything yet but we really want the house the only thing is that really makes me worry!!!
Your lender said that the bathroom had to be redone prior to closing as a condition of the loan. And, you redid the bathroom, at your expense, prior to closing.
What is holding up the closing? Is it scheduled now?
I advise my clients to never make repairs to a property they are buying prior to the closing. So many things can happen....