alright, had an offer in on a short sale property for 10 weeks. Heard nothing. Then we get a call and they

Asked by T, Saint Paul, MN Wed May 27, 2009

accept our offer but want to close in 10 days. Trouble is there is a renter in the house. What do i need to do to cover myslef so we dont get burned here somehow? Since they are sold as-is couldnt the renter strip the place before moving and we would be responsible? They will be there when the inspection is done which i am not happy since you cannot see everything. What should i do to protect myself?

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Patrick Howa…, Agent, Edina, MN
Thu May 28, 2009
BEST ANSWER
There are a number of issues here. You didn't specify if you are paying with cash or getting a loan. If you're paying with cash then closing in 10 days shouldn't be an issue. Selling a house "AS-IS" only refers to whether or not the seller warrants that the mechanical items in the house (air conditioning, heating, plumbing, wiring, etc) are in working order. On page 2 of the MN Purchase Agreement there is a place to specify what the tenants rights are. Getting the tenants to leave for a few hours during the inspection shouldn't be an issue. A good Realtor would see to that. Renters do crazy things all the time but there should be some protections in place. If they were to do damage before you close thats on the seller. If they do it after you close then you should be covered by the security deposit and/or your insurance coverage. Make sure you're working with a Realtor that has short sale experience or contact Washington County to see what resources they may have so you can speak with an attorney about this issue. Good Luck.
0 votes
T, Home Buyer, Saint Paul, MN
Wed May 27, 2009
How practical is closing in 10 days? Especially with renters on location? I want an addendum written but what do i need to cover? The sellers agent hasnt done her job with paperwork and i feel like we are scrambling. I want to help them and keep it from forclosure but after the 10 days the short sale offer is void. Could this be their way of covering up problems they are aware of but we have no way of preventing with renters that refuse access? Why is this okay with the listing agent? There HAS to be a better way. I know staying away from short sales would be one but the inventory is really down in our price market. Where would i get legal advice? Real estate lawyers in the yellow pages? Or should i be more trusting of MY agent? It seems she is trying but it is pulling teeth from the listing agent.
1 vote
Elizabeth Fu…, Agent, Wayzata, MN
Wed May 27, 2009
Aaron gives good advice!! He is right about protecting yourself; your realtor can be a big help in this. When I write a short sale or foreclosure property offer, I try to think of all the things possible and make some sort of addendum. This is not always workable, since many companies have an almost air-tight list of things that must or must not be on the puchase agreement. Sometimes protecting oneself is difficult. Liz, 612-986-4105
1 vote
Aaron Dickin…, Agent, Champlin, MN
Wed May 27, 2009
The renter's lease stays on the property... so the renter will have the right to stay until the end of the lease. Since you are doing an as-is you've really got little recourse if something is wrong... you could potentially go after the renter if they caused damage but you'd have to be able to document that.

Also, you should have asked for the damage deposit from the renter since you will be responsible for returning that (plus interest) at the end of the lease.

I am not an attorney... please seek an attorney's advice regarding any legal quesitons.
1 vote
Elizabeth Fu…, Agent, Wayzata, MN
Mon Jun 10, 2013
I don't know the answer except that it is the bank who stacks the cash, If you are buying as an occupying owner, the problem compounds. Welcome to Short sale world...Liz 612-986-4105

PS I hope your lender and your realtor will hang in there and help. We do try to do our best to avoid these situations. However, buyers want to believe they can easily and readily buy these properties.
0 votes
Ron Thomas, Agent, Fresno, CA
Mon Jun 10, 2013
FOUR YEARS OLD!!!!
Do you think the Tenants are still in there?
0 votes
Steve Vennem…, Agent, Pine Springs, MN
Mon Jun 10, 2013
Make it a condition that the renter moves out prior to closing or you may be stuck with them and damage if any occurs also legal money if you have to evict the renters.

http://www.nationwidecontractfordeeds.com/rent_to_own.html
0 votes
Aaron Dickin…, Agent, Champlin, MN
Wed May 27, 2009
Is title work complete? Appraisal? If yes, then maybe. If not, probably not. Your agent should be able to help you find a good attorney.
Web Reference:  http://www.AaronSOLD.com
0 votes
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