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Uncooperative Tenant blocks short sale efforts - home likely to go into foreclosure now.

By
Real Estate Agent with Advantage Realty #1

Uncooperative Tenant blocks Short Sale efforts - home likely to go into foreclosure



We are working with a lot of
short sale sellers in Sun'n'Lake of Sebring and have been very successful in obtaining good offers and bringing the transaction to closing for our clients.

Sun'n'Lake is a popular neighborhood close to medical facilities, schools, shopping and every convenience Sebring has to offer. The SNL district has its own security force, fire department, 2 golf courses, community pool, tennis courts, lakes, playground, clubhouse, restaurant, paved biking and hiking trails and is a very well maintained community. It's not hard to find buyers for homes in Sun'n'Lake.

We listed a beautiful 4 bedroom home for sale in a very quiet and tranquil area of Sun'n'Lake. The home was built in 2007, has a very pleasing floorplan and is very well maintained. $110,000.

The home is tenant occupied. We always make every effort to accomodate tenants and their work schedule to facilitate showings. We met with this tenant shortly after taking the listing to make arrangements to take photos. The tenant was to call us to let us know what time is good for her. No phone call. None of our calls were returned either. We left notices on her door, no reply from the tenant.

After 4 weeks, we were finally allowed to access the home to take photos and measurements. We took the measurements, to avoid being fined by our local board, but declined taking photos. While the home is clean, there is clutter everywhere. It was hard to make out the breakfast bar in the kitchen.

We were not able to reach the tenant for showing appointments and missed out on several potential buyers. We have worked with the landlord/owner to resolve the problems with the tenant. He pays a property management agency to collect rent. The property manager was not very responsive at first and it took several letters and phone calls from the landlord to get her to cooperate.

The property manager states she has taken the tenant to see several other rental homes but that the tenant has made no decision. We talk to buyers and sellers every day and after while you get a pretty good idea of one's motivation to buy, sell, move or rent. This tenant has no plans to move out of this home unless served with a notice to vacate by the Sheriff.

Meanwhile, the property, which could have sold already, is sitting on the market with lots of interest but now way of selling to anyone. It appears to us that the landlord has resigned to the fact that his property will go into foreclosure because the tenant does not cooperate with anything.

Comments (4)

Barb Van Stensel
Chicago, IL

I would ask if the Owner is aware of this difficulty?  Then I would look at the lease and see what the lease says what the Seller has for remedies?  Is 48 hours ample under the law in your state to give notice, and then you are allowed to proceed?

If the tenant will not vacate unless served by the Sheriff, what is the end date of the lease?  is it month to month? 

Then I would suggest that offers be written pending inspection of the property.  Pretty simple.  I've done that before.  I've had people write the offers, blocked the entire weekend for the buyers to look and have their inspectors come in and inspect the home. 

Get that lease over to an attorney to have him/her review it so that the seller's know there options.  Doesn't sound like the property management company is helping out too much, either.

Keep us posted!

 

Aug 27, 2009 03:50 AM
TheMillsTeam YourSebringRealtors
Advantage Realty #1 - Sebring, FL
863-212-5441

Barb, done all that. Landlord is aware of the problems. We reviewed the lease, it's good for another 12 months. Tenant has to grant reasonable access and cooperate with efforts to sell home. We're still at square 1.

By being served by the Sheriff, I mean after the foreclosure sale of the home.

Aug 27, 2009 03:53 AM
Sidney Jimenez
Keller Williams - Miramar, FL
CDPE, Short Sale Expert, 954-665-9449,

ANDREA & DARRIN,

Your tenant has NOT shown to have given reasonable access or cooperation. In my area we can go to court and have the tenant removed since they are not cooperating with the sale of the property. The Landlord needs to be a bit more proactive and try to get your local authorities to take action.

Reasonable is up for interpretation and I believe you have a very, very good case to show that they have not, in fact, been cooperative.

Aug 27, 2009 09:25 AM
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Andrea & Darrin -  I had a similar situation.  Tenant was blocking showings so he could eventually put in his own offer.... 

Aug 27, 2009 10:29 AM