Can I Short Sale My House With Structural Damage?

Great information, Dave. Sometimes people get bogged down in the calamity and think there's nothing that can be done. There's generally a solution that is better then nothing. Getting the info out is key. Thanks

Good blog post Dave. Thank you for sharing it with us!

Great post.  It's amazing how many folks that don't realize the power of a 203k rehab loan.  It saved me in a short sale that I listed.  Client was happy with her newly renovated home and the bank was happy to get it off their books!

Last year a home I had listed went under contract for a short sale. It had already been appraised for the short sale prior to the buyer making the offer.  As a result of the home inspection it was determined that there was a foundation issue and the buyer signed a release.  I requested the lender to do a second appraisal and I met the appraiser with the home inspectors report regarding the structural issue.  The second appraisal came in $10,000 lower and we then sold the home to a second buyer at the lower price.  It may just take a little more effort........but it can be done.

Awesome post Dave...we are seeing the banks be much more understanding when it comes to combining 203K financing with short sales...giving 45 days from acceptance on these deals is becoming more of the norm here

Great suggestion and it is more then likely true that the bank doesn't want the structural damage.  My seller disclosed on the Property Disclosure form about a roof that wasn't leaking on her garage but that it had only a couple of years to its life and the lender wanted certification of the roof, even after she had a complete tear off and redid the entire roof. 

I'm a firm believer that with the right price, any house with any condition sells!

Dave:

Very good post.  These are the type of house that banks do not want to own so they may be amenable to the short sale at a reduced rate.

No question about that. We see that all the time out here. They buy them like they are, bugs and damage and all.

Homes that are realistically priced usually sell at some point.  Condition will play a part.

Patricia/Seacoast NH & ME

There's a buyer for every home, even a short sale.

I sold a short sale in which the pipes in the ceiling broke and flooded out the house. The bank dragged its feet -- back in the old days at Bank of America before Equator -- and mold grew to the size of basketballs. It was vacant and a shambles. The sellers were in tears, sobbing that nobody would buy their home now. But somebody did. If the price is right, anything will sell.

It really depends on the bank and having a committed agent.  It is not necessary easy because banks want to assume that it will sell for the same price as a home without the same damage.  You have to educate them.

Dave  -  I agree with TNI and you.  Price will make the home saleable, and yet the bank will have to be made to understand the true value.

Dave, what a great post and a good reminder that price is a great equalizer. No matter the condition, if priced right it will sell.

Fantastic post. Utilizing the 203k loan and the Fannie Homestyle will give the buyers the best opportunity to maximize their purchase. The Fannie Homestyle can be used on second homes and investment properties. It's the little known gem in the mortgage industry.

Thanks for the blog many first time home buyers must have read your post because many are using 203k and Homestyle renovation loans programs.