Investor · Stamford, CT · Member since 2012 · 247 posts · 63 votes
I'm interested in several listed short sale properties that are currently occupied by the owners. Is there a potential risk where a bitter owner might trash the house upon closing--or does that generally happen more with foreclosures?
Real Estate Investor · Desoto, TX · Member since 2013 · 560 posts · 528 votes
12y
Having someone (even if it is the owner) living in the property could be a good thing IMO. Someone is in the property and this could reduce the chances of vandalism, theft, etc.
Because it is a short sale, the Seller is taking the action to try and sell. Trashing the property would be in opposition of getting it sold. I would not be too concerned about the owner living in the property. Like others mentioned, do a final walk through before closing (the same day of closing).
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
With a short sale you are buying if from the owner. Not the bank. So, as for any purchase, do a walkthrough the day before or day of closing. If they've trashed it, refuse to close without renegotiating.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
12y
In some states if you are dealing directly with the owner, instead of a listed property through an agent, there may be laws to protect the homeowner. Maryland is one such state and I know some states used the MD law as a model to copy.
Real Estate Investor · Desoto, TX · Member since 2013 · 560 posts · 528 votes
12y
Having someone (even if it is the owner) living in the property could be a good thing IMO. Someone is in the property and this could reduce the chances of vandalism, theft, etc.
Because it is a short sale, the Seller is taking the action to try and sell. Trashing the property would be in opposition of getting it sold. I would not be too concerned about the owner living in the property. Like others mentioned, do a final walk through before closing (the same day of closing).
Real Estate Agent · Owensboro, KY · Member since 2013 · 126 posts · 28 votes
12y
I haven't dealt with a seller yet that wasn't appreciative that the buyer was solving their problem of getting the home sold.
But, I have met many sellers who waited too late to participate in or complete documentation to process a short sale and lose their opportunity due to foreclosure sale.