Short Sale - Protection to proptery

Jean BoFebruary 15, 2013

We are in the process of purchasing a short sale, everything is going smoothly (I guess). The property needs work and are willing to do that. We had to get special financing because it has an existing roof leak. But as time marches on with the "short sale process, to do list" of the property, it sits and we are experiencing lots of rain last night and today. I feel like I should be protecting the property, tarps, buckets, bull...... something! I know the property is not mine yet but does the bank have any responsibility to protect. We are buynig the property as a "land value" the bank doesn't want to hear about the issues with the house and again we know that but in the case of thing maybe getting worse.... I feel very anxious just sitting here. there are things like developing mold to consider...... What can I say to the Realtor? I did bring it to her attention and she agreeed the property should be protected but did not outline any course of action. What to do?

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ncrealestateguy

Bring it to the bank's attention that your inspection found a leak. Send them the report. Let them know that you expect at least a tarp to be placed over the leak. They may or may not do it.

    Bookmark   February 15, 2013 at 6:50PM
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brickeyee

Are you at a stage your offer can be withdrawn?

Banks re not well set up to handle maintenance issues that crop up on their REO.

Further decreasing the value of the property.

    Bookmark   February 15, 2013 at 8:47PM
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Jean Bo

No I don't want to withdraw, I would just like someone to protect it from further damage either they do it or I will volunteer to do it. As stated we knew it had this roof leak and got special financing to deal with it. I know banks are getting funding to mow and maintain properties like in my area they throw mosquito donuts in pool I have seen them cover the pool so no one can fall in. Bla bla bla but with this house nothing has been done and I am fine with all that, however with the weather getting into more of a rain season, well actually were probably a little bit away from that but it's been raining here for 24 hours now, but maybe not where the property is. But I am just wondering if they have responsibility to keep property from getting worse. I would just like some goop put on the roof I know where the leak is originating from. It's where two structures are tied together. Not looking for a fix but a temporary protection. I contacted the real estate agent, don't know if she passed on my concerns.

    Bookmark   February 15, 2013 at 9:29PM
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brickeyee

" But I am just wondering if they have responsibility to keep property from getting worse."
They own it.

Do you have a "responsibility" to maintain your property?

Probably yes if you have a mortgage (you are not allowed to allow the property to 'waste' under most notes securing the loan) otherwise not so much beyond zoning codes.

Your only option is to point out the problem and then seek concessions based on damage (the property is no longer in the same condition as when the contract was ratified or the offer submitted).
They definitely have a duty to you once a contract is made to not allow further decay, but often the only solution is to cancel the contract.

    Bookmark   February 16, 2013 at 11:41AM
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c9pilot

Where are the owners and the listing agent? You said this is a short sale, not REO/Foreclosure, so they should be in the picture.
The bank can't do anything either - it's not theirs to protect - yet.

    Bookmark   February 17, 2013 at 3:59PM
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Jean Bo

The owners have moved out a long time ago. It's a short sale so I guess we are in limbo. Fortunately this area didn't get the rain that we did. I was freaking out because we had 36 hours of constant rain. I just hope things move along cause my luck can't hold out for long. The bank doesn't care about house either cause they are selling property as a land value. However we do and would like to protect it. I mentioned it to her, we will see what develops. I was able to find a timeline on the internet and it was very helpful to see the process and I guess were moving along nicely.

    Bookmark   February 17, 2013 at 6:18PM
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dreamgarden

"They definitely have a duty to you once a contract is made to not allow further decay, but often the only solution is to cancel the contract."

That would be my guess as well.

If you could tarp it down until closing, you can always try to collect on that expense later. You know your going to have to fix the roof, don't end up with a mold problem.

    Bookmark   February 17, 2013 at 9:32PM
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weedyacres

Why don't you just call a roofing company and ask them to put some tarps over the roof leaks? It's a pretty quick job and shouldn't cost much. Even if you have to pay for it yourself, it's probably worth the outlay.

    Bookmark   February 17, 2013 at 9:49PM
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ncrealestateguy

Weedy... it is not their house yet. You can not do repairs on someone else's home.
I don't really see a big issue here... either it has been leaking for a long time and there is already rot and or mold, OR, it is a recent leak, and a few weeks of leakage from a few rain events is not going to cause mold nor rot. Maybe some water damage, but probably nothing that has not happened already.
Good point C9, everyone here was responding as though it was a foreclosure.

    Bookmark   February 18, 2013 at 7:18AM
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sylviatexas1

Your agent can present an amendment or make a request to the seller's agent, but:

'We are buynig the property as a "land value" the bank doesn't want to hear about the issues'

doesn't sound like you'll get anything done.

You might get the current owner to let you cover the damaged area.

I wish you the best.

    Bookmark   February 18, 2013 at 8:12AM
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Jean Bo

Thanks all, yes there has been quite a bit of interior damage to the drywall in this one spot already. We didn't see mold yet but it is a huge concern, weather here has been unusually dry for a long while. We couldn't see much else, the ceiling are high and its a small roof area meeting up with a larger roof area. I think maybe we have an inspection soon at least that is my hope. I think I will throw some bull or mastic in the car and while others are busy elsewhere in the house I will send DH to slab on some goop while no one is looking. Small investment, things could fall apart at anytime, but thats peanuts to what we already have invested. We have to be let onto the property, so we can't go anytime. I'll keep ya posted....

    Bookmark   February 18, 2013 at 9:14AM
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brickeyee

Tell the owners you are buying from your contract is going to be withdrawn since the property is no longer in the same condition.

Put it in writing from your attorney.

CC the lender.

Be prepared to walk away.

Water damage is insidious and expensive to mediates if it is prolonged.
Major leaks wreck flooring almost as fast as they stain ceilings.

Your best deal might be to withdraw, wait till the place is foreclosed, becomes REO, and then get a bargain based on the damage that will have occurred.

If you can do the tear out and clean up yourself, and at least some of the repair it could still be a good deal.

This type of house can easily become a money pit that will cost more to repair to habitable condition than it is worth.
It will then be a 'knock down' for the land value only.
Proceed accordingly.

This is a business deal, so leave the emotions at the door.
Be prepared to walk away.

    Bookmark   February 18, 2013 at 1:06PM
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weedyacres

NC: that may be, from a technical/legal perspective, but I'd ask forgiveness, not permission in this case. I can't imagine anyone would show up to complain and stop the work, or get mad after the fact.

    Bookmark   February 18, 2013 at 5:35PM
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