Jeff’s Carlsbad Blog for First Time Home Buyers


Termites and Short Sales

Posted in Financial,Inspections,Short Sales by Jeff Dowler on March 6, 2009
Tags: ,

This post is about termites and short sales.  And pre-foreclosures and REOs, too.

This is NOT to imply there are more problems with these homes than the typical sales. Termites don’t discriminate – they like wood no matter what type of home it is.

The issue for buyers, however, arises out of the fact that (1) the home is being sold AS IS, and (2) the homeowner is financially strapped and owes the bank more money than the home is worth on the market.

In the typical sale here in Southern California, buyers negotiate for the seller to do a pest inspection AND to take care of remediating termites as well as repairing the damage. Sellers don’t always agree, but it’s pretty common. A major reason this is done is because the buyer’s lender does not want to lend more on a home (their collateral) that is termite infested. Makes sense that they want a clearance on the property before closing.

Buyers – be aware that the bank may not be willing to do (pay for) the termite inspection. But more costly is the fact they may not be willing to pay for the remediation and repairs. The seller can request the bank pay this in order to get the short sale completed. But if they refuse the buyer will have to agree to the additional cost, or back out of the transaction.

Of course you will have access to the report so you will know the costs of remediation. But it is a monkey wrench that can thrown into the mix. Just thought I’d warn ya.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.

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