Short Sales and Inspections

cg-pm52111 · March 2012

So we put and offer on a short sale and this listing agent told our agent that this particular bank stipulates that we have the home inspection with in 7 days of sellers approval (if they even accept). This would be before bank approval. Is this normal? My understanding was that the inspection would happen post bank approval because there would be no point in having the inspection if the bank doesn't approve the offer. Our agent seems a little surprised by this as well. Thoughts?

TIA!

Sisugal · March 2012

Should the inspection show issues that need to be addressed, that is often another negotiation round which would change the accepted amount for the home being presented to the bank. The bank does not want to deal with it until there has been a final agreement on price. The bank generally is not going to negotiate, nor pay for items on an inspection repair/replace list.

BriGiboo · March 2012

ours had to be done before the bank would accept the price. Short sales are their own animal. normal real estate rules dont seem to apply.

LoveKiss · March 2012

I agree with a PP that short sales are their own animal alltogether. In our area, inspections are typically not done until 3rd party approval has been secured. However, when we put in our current offer on a short sale (waiting for seller's response), we divided our inspections into 2 different time frames. We will do the regular (structural/mechanical) inspection after acceptance by the seller, and the well and septic inspections after 3rd party approval. We wrote the inspection clause this way because we have concerns about the property and soil issues around the footings of the porches. We want to make sure that the home is structurally sound before we spend a lot of time on the deal. Since it is a newer home, we are less concerned about the septic and well systems, so we will hold off on those inspections.

Short Sales and Inspections

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