Negotiating with Bank

[Tony Colavecchio]

I have an offer on a short sale and am waiting on the Bank to do the BPO.

I'm interested in any experiences/tips on negotiating with the bank(Chase Bank, single loan). There are some repairs that I anticipate needing and want to try to negotiate the bank into paying for them.

What I would like to do (not sure how realistic this is) is request the bank bring 10-15K to the table to resolve some key issues (ie. AC is out) and in return I will obtain my loan through them (given certain loan conditions).

I would think this would be in their best interest because their ROI would still be more and give them a chance to recoup some of their loss.

Any thoughts or experiences with this out there?

Thanks

Tony

[Monica Breckenridge]

Tony Colavecchio I'm assuming you want to buy this house as your primary residence. The banks dont pay for repairs. The best they can do is put a line item on the HUD for minor things, I've seen up to $2500 as a line item on the HUD. They make the contractor pay for the repairs and then the contractor gets paid at closing. However, good luck finding a contractor to work for free with no guarantee of the deal ever closing. If you are getting a loan, the contractor could loose out on his money if the loan doesn't go through or you decide the walk.

Some banks will rehab the property once they own the house as an REO, but they won't rehab the house prior to owning the house. When doing a short sale the seller still owns the house and the bank can't do these repairs.

[Michael Lauther]

My experience with Chase is that they will determine the market value of the house based on a BPO and an inspection of the interior. While Chase would not comment on any specifics from thier inspection the price they would accept did appear to reflect the condition of the property. Your offer should take into consideration the renovation requried. Chase would only sell it as is on a short sale. Having said that they did discount the price substantialy. Keep in mind I have had only limited experience with Chase in NY. Their practices may vary widely from state to state.

[Tony Colavecchio]

Thank you Michael and Monica. We have discounted our offer price based on the condition of the property, but since the inspection was not done yet we only knew of some things wrong with the house. We just learned that the AC went out since the time we put our offer in (as well as learned of a few other minor things) and we are wondering if the inspection will find anything else significant.

I'm just trying to figure out my options for these "new" issues that may be popping up. They possibly weren't factored into the original offer and may cause us to either walk or someone will have to pay the difference (ie. realtor dropping fee or seller bringing some to the table). I just didn't know if dealing with the bank would be a possible option.

I'm ok with these not being fixed prior to moving in as long as the sell price was adjusted accordingly.

Anyway, thanks for the help.

[Jeffrey Nowakowski]

Tony, I am in the same boat as you and I'm trying to figure out the best angle to negotiate with the bank.

I just finished my inspection and found out the furnace is unsavable, the sewer line is collapsed and the roof need major repairs. I was anticipating a lot of work on the house but these are some major items I hadn't anticipated.

I would like to go back to Chase and request a lower price, an/or credit for the repairs but I don't anticipate them being receptive.

I know that the agent is getting 6% on this deal, (purchase price $297,000) Does anyone know if it is possible to get the agent to chip in a protion of her commission for the repairs? If the deal falls through she gets nothing and the bank will foreclose, but I don't know how to legally have her pay for the repairs. Anyone have any thoughts?