El Dorado Hills - Homes & News - DeeDee Riley Realtor: What are the banks doing? And why have we lost total control to them?

What are the banks doing? And why have we lost total control to them?

Attention to all of you who list or sell foreclosures.  I have a situation right now that totally baffles me and am hoping to get insight or input from you.

I have a client purchasing a foreclosure from CalHFA in Elk Grove, California with a FHA loan.  The appraiser went to the property and identified a few small issues that are a condition of funding.
1. dishwasher is not working properly.
2. garbage disposal is not working.
3. a window sill in the kitchen is disintegrating and needs to be replaced.

When I asked the agent to see if the bank would fix these, I was told that the house is "As Is".  Ok, so I told my client it would be his responsibility to get them done.
When we did the home inspection, the general contractor (a family friend of my client) who did the inspection took a further look into the dishwasher and the garbage disposal and thought they were both repairable. 

I was able to get the company who did the pest inspection and repair work to go back out and take a look at the window sill as he apparently hadn't caught it when he did the inspection.  He fixed it at no charge and that is no longer an issue.

We received loan approval last week at which time I asked the listing agent to get the permission so we could get in and have the same general contractor who did the inpsection do the repair work on the remaining two items.


Today I was told by the listing agent that he had gotten an email from the asset manager over the weekend and that "their attorneys weren't going for it".  I tried to remain calm and asked him what they wanted then as the loan will not fund if the work is not done, but they won't fix it, and won't let us fix it.  He said the asset manager was working on it. 

Just as a little more background to this picture. The house was listed for $165,900.  Our offer was for $166K with them paying 3% for buyer closing costs so it is not that we haven't been reasonable. I was worried that it would not appraise for that amount as all the comparables in the neighborhood didn't warrant the $166K and shocked but pleased that the appraisal came with just those few repair items.    

I recommended to him that he hire my client's contractor (so it could be less expensive for my client) and have it billed to escrow for the buyer to pay.  I have sent the agent the contractors license information so now we are just waiting.    

What are we suppose to do?  Please let me know if any of you as listing agents or selling agents have ever had this happen and how did you resolve it?  This is the kind of things we are dealing with on a regular basis these days with the banks on the mortgages both foreclosure and short sale. The banks were bailed out and now have no sense of urgency to work with the consumer even when on their own terms.  Is there nothing we can do as the huge number of agents we are to make a stand?

 

 

DeeDee

 

DeeDee Riley - El Dorado Hills Realtor - Lyon Real Estate - CABRE#01499004

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Comment balloon 2 commentsDeeDee Riley • January 11 2010 02:29PM

Comments

It is not an issue of whether you are being reasonable or not in your opinion. All the parties have to be on the same page, and options exist all along the way. Work thru the issues and the deal moves forward or the camel's back may break from a sale that has lots of obstacles. And may not get to the closing table to transfer title based on principles, emotions, what is deemed fair or unreasonable by each side that keeps score. See a real estate sold sign rider on that property and keep moving. Or as a real estate broker, you jump in and pay the cost, do the work if no one else is taking the marathon baton. Some sales easy and scare you at how smoothly they head down the real estate pipeline. Others are labor, time, expense intensive. But there are no ugly real estate sales...like hockey goals.

Posted by Andrew Mooers | 207.532.6573, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) over 8 years ago

Tlhanks Andrew for your quick response and your insight!  I was the one to get the pest inspector back actually and am ready to solve this problem too.  Just need that permission! I'll keep sold rider in my mind.:)  

Posted by DeeDee Riley, Realtor - El Dorado Hills & the Surrounding Areas (Lyon Real Estate - El Dorado Hills CA) over 8 years ago

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