Sunday, December 11, 2011

Inspection Result of the Short Sale Condo

I had the short sale condominium inspected last week. As expected, the inspector found additional issues that require repairs. Many of the repairs are due to neglect and lack of maintenance by the Seller.

Before I go on to discuss the repair items, I learned something about the Seller that somewhat irritates me. The Seller purchased the home in 1997 for $180,000. In 1999, she was let go from her job that she had for 17 years. She was unemployed for 2 years until 2001. Her next employment only lasted 1 year. The Seller was then unemployed for another 3 years until 2005, where again, she was only able to maintain a job for 1 year. She's been essentially unemployed (or "self-employed") ever since.

In August 2006 (hopefully during the time she was gainfully employed), she refinanced her home to the tune of $375,000. In March 2007 (during her unemployment period), she took out a 2nd mortgage in the sum of $73,000, probably via a NINJA ("no-income, no-job application") loan.

I know I have no right to judge the Seller because I don't know her entire story. But considering that she's had a spotty employment history since 1999, I can't help but to think she was either greedy or irresponsible for refinancing, rather than selling her condo. Personally, if I wasn't confident about having a steady income to repay my mortgage, I would sell my condo. I certainly wouldn't take out a 2nd mortgage during a period of unemployment.

Had the Seller sold in 2006 or 2007, she could have easily sold for $483,000 - $508,000 and broken even or even made a small profit. The Seller instead chose to live off of borrowed money despite her unstable income. She spent $0 on maintaining the condo and it shows. Every repair item that I know I have to make due to "lack of maintenance," sticks in my craw. I guess it infuriates me because I should've asked for a bigger discount during the negotiation. *Sigh* Live and learn, I guess.

Oh... and did I tell you that the Seller is going to get rewarded with an additional $3,000 from the HAFA program? Oh righty. I'm finished ranting and raving.

Anyhow, here are some of the issues the inspector found:
  • Broken garage door hardware;
  • Corroded pipes underneath all of the sinks;
  • Chipped kitchen sink and broken garbage disposal;
  • Damaged fire door;
  • Leaky bathroom faucet;
  • Dirty and unmaintained air conditioning unit;
  • Dirty and unmaintained heating unit;
  • Unsealed platform at heating unit;
  • Rusted and discolored burners at heating unit;
  • Vent pipe at water heater stained;
  • Various locations of drywall damage;
  • Various locations of ceiling damage.
The inspector surmised that these repair items total about $2,000 or so, assuming I don't need to replace any of the major items like the AC or the furnace. Even assuming that those items need replacement, I can just choose not to turn on my AC and central heat. One of the benefits of living in a temperate climate like San Diego.

I'm a bit nervous now that I've underestimated what it would cost to make my unit "move-in" ready. I'm getting a dose of home ownership reality before I've even closed.

2 comments:

Michelle P said...

A lot of things in our house had to be replaced or fixed, probably around $10,000 worth. They fixed a lot and everything they didn't fix, we took off the amount of the house. Thankfully everything worked out in the end for us, but I can't believe the way that some people live.

sofia marielle said...

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