Problems with Short Sales

I was emailed a question from a buyer who is purchasing a home through the Short Sale process. It is not uncommon for the seller to want to get as much money out of the house as possible.  Read what the buyer wrote, below.

“I made an offer on a short sale, and quicly found out — the day after getting approval — that the seller removed and sold 3 appliances that were included in the purchase agreement (built-in microwave, oven, and dishwasher).  The deal has started off rough.  The seller will not be able to replace these items or replace them with new ones since they are in a financial crunch, but they did offer to tack it on as a credit. We are uncomfortable with this since there is no guarantee that the lender will approve it as the agreement already states a 2% credit before this happened.  Isn’t that asking a lot from the lender?  And not giving us the house as we initially agreed, is this a breach of contract?”

My Answer to this question:

Were the appliances in the home when you made the offer? If so then the sellers are in breach of contract. The CAR purchase contract clearly states; anything attached to the home is included in the SALE (page 3, paragraph 8B) and part of the contract.

You may want to speak to your lender about the credit. The lender that I use allows up to a 6% credit, depending on the home and the amount in the downpayment. Credits are always a case-by-case decision by the lenders. 

This is the problem with Short-Sales and Foreclosures in this market. You are dealing with people who are financially strapped and in a hard place. Most of the foreclosures I am showing to my buyers don’t have a freestanding oven/range — they are frequently removed by the sellers.

Hopefully your realtor is handling this for you and your purchase will continue. That is the advantage of working with a professional Realtor.