Special offer

Vacant Short Sale Listing - Who is Responsible?

By
Real Estate Broker/Owner with Move Up Properties CA BRE Lic 01193694

I have several short sale listings.  A majority of them are occupied by the homeowner.  Occassionally I have sellers who are fed up with the process and wind up moving out prior to the short sale completion but they typically remain in the area and continue to check on the status of the property as we also do.  However, I currently have a short sale listing where the homeowner has moved on and out of the state completely.  After the home had been vacant for about a month the lender slapped a vacancy sticker on the window and changed the locks.  I immediately contacted the lender to inform them that I have a buyer in escrow ready to close the short sale transaction.  The bank sent me the key Fedex. 

After two buyers have walked during the purchase process the home has remained vacant and unfortunately vandalized several times.  Apparently the rear slider doors have been lifted out of the tracks and removed for easy access.  I believe that I resolve this security breach with each subsequent visit only to find another avenue discovered for entry.  The condition of the home is slowly disintegrating to the point that it is far more of a burden on me than an asset.  The particularly interesting aspect to this story is that Bank of America has never set a foreclosure date on the home.  It appears as if they do not want to take it back.  So I ask myself, who is ultimately on the hook for liability with regards to this home? 

Posted by

Diane Wheatley, Broker

Real Estate Brokerage, Upland CA

 

(909) 815-4499 Direct Cell

CA DRE Broker Lic #01193694

 

 

Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Diane,

The homeowner owns it, but has no financial or emotional investment in the home anymore.

The bank will own it soon, so changing the locks so their field people can keep an eye on it makes sense.

Do you pay for upkeep out of your own pocket, against the hope that maybe you will get a commission before the foreclosure happens? Kind of a big risk?

Phil

Feb 28, 2012 06:37 PM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

I have a seller who has washed her hands of the process. After 6 months she is sick of all the hassle. The odd part is we have a buyer and the bank is ready to move forward. I guess she had simply reached her limit.

Feb 28, 2012 10:49 PM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Diane, the seller is responsible. I had a four plex in Long beach that got vandalized on a daily basis. The city eventually stepped in and boarded it up and charged my seller for it. I had the buyer pay the costs and my seller walked away without paying anything.

What you need to do is make sure the bank knows the costs to repair any damage. Make sure you get a high contractor's estimate. Take pictures of the vandalization and upload it to equator. Use this to reduce the price so that you can have an experienced buyer or investor step in and buy it regardless if it gets vandalized again.

Glad to see another agent in my area helping people with short sales.

Feb 29, 2012 07:20 AM