All Forum Posts by: Megan Phillips

Hi All,

Interested in a house for auction on Hudson and Marshall's site. When I read the terms of service I got a bit confused as it states these are cash sales, not contingent on financing - but also states that if a property is vacant (it is) that you can use financing,  I also have questions about possible inspection periods and appraisals, as financing would be contingent on appraisal value. 

There is no listing agent or local phone number to call, but I couldn't get clear answers from Hudson and Marshall when I was asking about the property. They were very nice and tried to answer the questions, but it seems like everything varies from house to house individually, so they couldn't verify if I could use financing, etc, just said something like "it depends if the house is occupied or vacant, if it's vacant, you might be able to use financing..."

Should I call again and maybe have a different response? Or is there a way to find out whom the bank behind the mortgage is and attempt to talk to them directly?

This would be my/my partner's first online auction attempt, and the wording in the terms of service about legal action if I don't fulfill requirement to purchase home upon an accepted winning bid is scaring me away from bidding --- is it simpler and more flexible than the terms of service make it sound?

Megan

100% agree with putting it in writing on the contract via an addendum that the unit needs to be vacated prior to closing (or provide copies of signed non-renewal notice). If you're using FHA or a similar low down payment financing option, you're underwriter is going to want proof that you are going to be living there.

Or you could give her the option to stay, but you'll increase rent to market and move into the 2/1, although a tenant being there for 10 out of 30 days is really great -- if you go this route, you'll still need proof of non-renewal for this tenant too.

I would still do a fire/safety inspection - that'll cover them having to do railings, etc also -- anything that needs to be fixed from a fire/safety inspection has to be fixed and has to be paid for my seller prior to closing. Inspection and repairs are free for you.

I'm not sure I would go for that, but I haven't had the conversations with the person that you have... I would ask them what their end game is.

You say the carpets are new, why replace them? I would be uncomfortable with someone not even living somewhere already asking about making changes. 

See link below - similar idea.

https://www.biggerpockets.com/forums/52/topics/561...

I agree - Chittenden county and anything bordering, as well as  college towns. I wouldn't bet any money I care about on other areas really becoming "hot" - not saying I wouldn't buy units in other areas (Barre for example) for cash flow, but I don't see them ever appreciating the way Chittenden county does. Maybe St. Albans, but I consider that a Chittenden county border town. If the market ever corrects or interest rates increase and prices go down, I would definitely buy in Milton or Georgia.

@Mike Cumbie  I wouldn't consider it restored to present condition. They didn't remove and replace drywall/insulation (besides one small section of drywall). They replaced part of a ceiling that fell in. According to the tenant she spoke to the seller's realtor about her concerns because they did not replace a majority of the drywall or the bathroom ceiling that was wet, but they didn't fix anything else. I don't feel as though my not noticing during a walk through without any knowledge of it is grounds enough to say it was restored to original condition. It was dry at that point (final walk through was almost 3 months after this happened), how would I notice if I wasn't specifically looking for it? I understand I may be SOL, but it seems logical that water damage should have been reported by the seller and their realtor during the period of the property being under contract.

@Caleb Heimsoth Closing was 4-2-18, less than a month ago, not new construction or flip, was someone that had it as an investment property.

Good morning BP,

Trying to discern whether or not I have legal (or some type of recourse) upon the seller or seller's realtor --- here's the situation. After being under contract for the property, a pipe broke and flooded part of the downstairs unit, I was never told about this until after closing (by tenants). I have attached photos of what I would consider pertinent parts of my purchase and sale contract regarding realtor liability and mediation, as well as the part on risk of loss/insurance that reads something like if there is damage that is returned to it's former condition prior to sale, the Purchaser can accept that or has the option to terminate the contract... as I was not made aware of the damage taking place, I never had the option to terminate the contract, or accept if the condition was returned to it's original form.

I emailed my closing attorney and I'm waiting to hear back, as well as waiting to hear back from my realtor as they were going to contact the seller's realtor to discuss this.

Is this damage something I definitely should have been informed of? There was a final walk through of the property, but, as I didn't know about the pipe burst, I didn't know to look for water damage (even after I was made aware of this problem, with an untrained eye, it's hard to notice issues besides some sagging drywall and water drips on parts of the wall) and some part of the wood floor coming up outside of the bathroom door. The real issue: had this been known to me, I likely would not have closed (this wasn't the only issue with the place), at least without reduction of price or final say of damage repair quality. 

Thoughts?

I have in the lease that if any part is considered unenforceable, that it does not make the entire lease unenforceable, just that part,  which can then be edited to comply with local law or omitted from the lease. 

@Steve C.  My lease is based on The Book on Managing Rental Properties as well,  I just changed time requirements as per Vermont law/requirements. It already contained 95% of this stuff, worth the cost of the book already, considering it's loaded with other info. too (and other documents) -- I think my tenant will be surprised by my thoroughness also, considering their last lease was very literally a two page document that solely stated Names, rent amount, term, and signatures -- no mention of her dog, no mention of whom is responsible for what damages/maintenance, or even snow, lawn, trash removal, no mention of time frames (48hr notice of entry, 14 day pay or quit, etc) it was crazy after reading those books and seeing example leases.