Tenants and Successful Shortsales

Dated: 05/31/2013

Views: 1097

Tenants and Successful Shortsales

Have you ever had an offer in on a shortsale with a renter in the house?    I have a couple of tips that will help you have a successful shortsale..

1.  Make sure you have your agent write into the purchase offer, that the tenant will be given notice to move out in 30 days, once the sellers accept the offer. You do not want to inherit a messy or angry tenant.  Get a copy of the notice for tenants to vacate.

I was just involved with a shortsale where the seller only verbally told the tenant that he would need to move out.  They thought he had, and we show up for the inspection, and are amazed that it looks like the tenant had settled in for a longer stay.

Needless to say, this delayed closing by a few weeks.

In Washington, a tenant has to be given written notice within the first 10 days of the month.  That means unless the renters contract says differently, he would need to be out on the last day of the month.  This is best done by certified mail.

2.  If there is a rental agreement in place, be sure to write into the contract that the seller will enforce the cleaning agreement, including to have the carpets cleaned and damages seen to.

If no agreement is in place, good luck with getting even the house cleaned.  You will be told, its a shortsale, what do you expect?  Well, you can expect that a tenant with a cleaning deposit,  be required to clean up or lose his deposit to the sellers.  Write it in your contract that you want to verify that the tenant has a cleaning deposit, and that the sellers will apply it to clean up the home if necessary.  Schedule  your final walk through well before the closing date, before the sellers return the deposit back to the tenant, so damages can be addressed.

3.  Be sure to get the postal key if neccessary and above all, change the locks.  You do not want the ex-tenant coming back to pick up a few last things in the middle of the night.  You may even want to have the garage door opener re-keyed so you know only you can get in your new home.

4.  It is always a good idea to make sure that the utility bills are up to date, and if necessary, have the title company that is handling the escrow, to hold back a few hundred dollars to cover any unpaid utility bills.  You do not want a huge water and sewer bill attached to the house that you may have to pay.

4.  Above all, be patient and you too can have a successful shortsale and be living in your dream home.

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