Home Buying in Marysville>Question Details

Wwh20,  in Whitefish, MT

Long story...working on buyer side. Short sale offer was accepted by Seller and 2 lenders. When the Sellers?

Asked by Wwh20, Whitefish, MT Thu Apr 30, 2009

vacated the property the bank's hired caretaker turned off electricity in January (Montana) and the propane tank went dry...pipes froze, in-floor radiant heat system broke, oak wood floors throughout home damaged...after the agreement my buyers brought to everyone's attention that the home was insured under the 1st mortgagor's insurance. Had an estimate from their insurance company and a day before closing the bank said that you must be joking to think we would get a cent of the insurance money. Also, investigations have uncovered major problems with boilers, pipes, etc. Going to present an inspection notice but do you think that my client has a right to this insurance claim? I don't ..I think he should just lower his offer price due to our inspections and see where it goes?

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here's something that worked in my office. Similar situation,offered lower price,bank rejected counter. Contract cancelled. Extremely smart agent wrote a brand new contract at the desired lower price and it was accepted. Go figure!
1 vote Thank Flag Link Fri May 1, 2009
in my opinion no the buyer does not have the right to the insurance. The homes are generally sold as-is anyway, too many what if's etc. I agree with the last post. lower the price and if the bank says no, tell them see ya! i do hope your buyer did do his own inspection and hopefully the appraisal will be done just before closing.
1 vote Thank Flag Link Thu Apr 30, 2009
Dana, you're not alone. I have a teleconference twice a week with several (100 or so) other investors, and I network regularly with other groups of investors. I've heard exactly the same thing at least 10 to 20 times over the past 3-to 6 months.

I've personally experienced--and heard about--other slight variations on that. I submitted an offer on an REO roughly a year ago, after having done a walk through with my GC. The listing agent was highly unprofessional; he was indignant and refused to submit my offer. He balled out my agent and indirectly slammed me for making such a "ridiculous offer"--only to accept a similar offer from another buyer 5 months later. One of my mentors has submitted offers on several REOs that were rejected--only to receive calls (several months) later to inquire to see if he was still interested in them.
0 votes Thank Flag Link Fri May 1, 2009
As an investor, I'd opt to lower my offer price too. Has the buyer ordered an appraisal too?
0 votes Thank Flag Link Thu Apr 30, 2009
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