Home Buying in 03839>Question Details

Sincity939, Home Buyer in 03820

Should we make an offer on a short sale with renters living there?

Asked by Sincity939, 03820 Fri Aug 20, 2010

My wife and I are considering makeing an offer on a short sale in NH. We went to look at it a couple of days ago and confirmed that all of the big items (driveway, roof, gutters, water heater, deck, hot tub, furnace) are new (less than 3 years), but there are 3 renters there who are pigs.

We were told by the sellers agent that they would be moving out the middle of next month (seems like an odd time to me). My concerns are 1) Are they really moving out then, and 2) What condition will the house be in when they move.

From what we saw things were pretty much okay other some cosmetics (paint, carpet needs cleaning) but I am a little concerned about what is hiding under all of their mess. We could hardly walk into the rooms, nevermind look at the condition of the closets, floors, and walls.

Should we move on (we really love the house) or should we make an offer and make it contingent on the inspection and that the tenants leave by a certain date?

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"or should we make an offer and make it contingent on the inspection and that the tenants leave by a certain date?"
This is exactly what I would write into my purchase and sale.

Make sure it's not a section 8 tenant, because you may NOT be able to get rid of them at all.
http://www.homehelpnh.org/tenant.htm
1 vote Thank Flag Link Mon Aug 23, 2010
There are two items of concern. The first is with the short sale itself, you should know short sales usually take longer than a month to approve, on average it is 2-3 months from start to finish, most take 3-4 months and short sales have known to take 5-6 months to get approval and close. So you need to make sure you have the time and patience to purchase a short sale. Some are easier than others and they go as well as teh listing agent is expereinced in negotiating and selling short sales.

The 2nd problem is the tenant, you will want to make sure the tenant is out before closing and you have the opportunity for a walkthrough before closing. If you close with teh tenant, they become your nightmare to evict. The other problem is if you are getting a mortgage, the mortgage company will not let you close with a tenant in the property if you are buying it as owner occupied.

When buying a short sale you really want an agent who is expereinced in short sales that can guide you through the process, it will make things alot easier for you. A short sale is a great opportunity to get a great deal, but it needs to be done right. good luck with your purchase.

Pleasee see my blog for tips on buying a short sale.
0 votes Thank Flag Link Sun Aug 22, 2010
Hi,

A short sale can be a great way to get a great price on a house. Your contract should state that transfer will be free of all tenants and all personal property, meaning anything that isn't nailed, glued or screwed down should be removed prior to closing. Doing a home inspection with the tenants may be difficult, however the pros of getting the house at a great price should outweigh the hassles with doing an inspection with messy tenants. Your biggest hurdle will be to get the seller's lender to agree to your terms. Feel free to contact me if I can help further in any way...

Best wishes, Lee

______________________________________
Lee P. Johansen
Keller Williams Realty Metropolitan
2 Bedford Farms Dr., Bedford, NH 03110
Cell: 603-315-0739
Fax: 603-628-2246
Office: 603-232-8282
E-Mail: Lee@LeeJohansen.com
http://LeeJohansen.com/
http://leejohan.yourkwagent.com/
Licensed in New Hampshire
______________________________________

OH BY THE WAY
I'm never too busy
for your referrals
______________________________________
0 votes Thank Flag Link Fri Aug 20, 2010
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