Friday, December 23, 2011

Holy Frick On A Stick - - I May Close By 12/30/2011!

I just got word that the State of California agreed to release the Seller's tax lien off of the condo I've been trying to purchase in short sale. I've been told that the Seller also negotiated the HOA delinquencies and it looks like we're sprinting to the finish line. We may actually close escrow by 12/30/11!

The only recent hiccup was that I had to waive the termite inspection. What really irritates me is that the purchase offer that my agent drafted specifically stated that the Seller would pay for the termite inspection. The Seller accepted those terms. However, the genius realtors (mine and the Seller's) failed to ensure that the Short Sale Lenders would set aside funds from the sales proceeds to pay for the termite inspection. (But they sure as hell made sure that their commissions were taken care of.) Since the Seller agreed to pay for it, I could look to the Seller to pay for it out of her own pocket.

Oh yeah... I forgot -- The Seller hasn't even paid her state taxes. Why would she even honor the terms of her contract?

My genius agent now tells me that termite inspections aren't required for condos because termite control is the condo association's responsibility and I'm buying the property 'as-is'. Bullcr&p. First of all, I'm responsible for termites within my unit. Secondly, her blanket statement that termite inspections for condos are never required is only partially true. FHA-HUD loans require termite inspections even for condominiums. She's only correct that my lender doesn't require it.

I agreed to waive the termite inspection because: (1) re-negotiating the term with the Short Sale Lender will only delay the closing, and most importantly, (2) even if I got a Seller paid termite inspection report with adverse results, I'd still go through with the sale. It's still irritating, though, that my agent is selling me a snowjob.

Once I close, I'll hire a termite exterminator to inspect the property. According to this report, experts in the industry say "there is an incentive to "undercall" (i.e., an inspector misses or overlooks something in an inspection) during escrow. Professionals recommend that homeowners should have three or four companies look at their property. They also advised homeowners to watch the inspector during the inspection, making sure he inspects the locations claimed, like an attic or crawl space. If inspectors find termites, experts said to ask the inspector to show where the infestation is and what they found. Experts advised not to accept a single inspection from a realtor. If a termite company misses the problem, they do have to come back and treat it at no cost to the homeowner."