Short Sale Closing/Financing Ideas?

1 Reply

Hi,

Wondering if any of you with experience have any ideas for me on this deal:

We are at the tail end of a 7 month short sale process, and were supposed to close last week. Unfortunately, my lender came back at the last minute with the requirement to reroof the house prior to closing (appraisal showed less than 2 years life remaining). We were already planning to do this post-closing, had the roofer lined up, etc, but now not sure where to go with negotiations with the seller. For now, we put together a cash offer a little lower than our accepted offer price to cover about half of the new roof...intent is to move foward as planned and get the sale completed so the roof can go on before winter. 

IF the seller bank refuses our cash offer, what are some other options we could try to get this done? It has been our understanding from the beginning that the property is offered as-is, with no concessions...so asking them to completely cover a new roof is out, and I don't want to pay for the roof on something I don't own yet, obviously! Ideas??? Thanks in advance!

Who's the bank? You're correct, most banks won't give concessions to a buyer for repairs. Some smaller ones might.

You can take the inspections, repair bids, and like you did ask for a price reduction. The bank will need to review the figures again and an approval is not guaranteed. Going back for a change always runs a multitude of risks.

You could go hard money, fix the roof, and refinance. 

You could fix the roof and close if you're confident in closing.

No easy answer.

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