It sounds like it is something your lender will make the loan contingent on. The problem you may face is, since the seller is facing a short sale situation, they may not have the funds to pay for the repairs. Then, you may have a hard time finding a contractor willing to get paid at closing on a short sale.
I recommend that you contact your real estate agent regarding this matter. He/she should be your direct contact with these matters.
Best wishes on the purchase of your new home.
Syan Real Estate
Call/Text: (505) 730-8181
This sounds like a problem that can be worked out and should not delay your closing too long. Work with your Realtor and the lender and you will be closed before you know it.
Best of Luck
I have seen many times where lenders require repairs that donâ€™t always make sense. Last spring I had an REO listing that the appraiser made a note that â€œmany homes in the area have polybutylene plumbingâ€ and recommended a â€œplumbing inspectionâ€. The buyerâ€™s lender required us to do a re-pipe that would have cost $5000. The house didnâ€™t have polybutylene and we got two plumbers to inspect and say so but the lender wouldnâ€™t back down so we terminated and sold to a different buyer. (I asked the buyerâ€™s agent to move the loan but she stood with the lender insisting we re-pipe.)
I donâ€™t see how the seller repairing could cause a break in title. A cloud yes because of the possibility of a mechanics lien but proof of payment to the contractor and a release of lien should take care of it. Also, I donâ€™t know how it is in CA but here in NM you can buy mechanicâ€™s lien coverage on the title policy.
I would suggest you take the structural report to the lender and ask them to reconsider. If they wonâ€™t tell them to get the loan package ready to transfer and find a new lender. If you really want the house, and your lender wonâ€™t work with you find one that will.