Our Short Sale is Toast!

[Catie34]

We had a short sale in the works but after the home inspection reveal we needed a new roof the buyer withdraw their contract since we could not pay for it!

We do not have $6000. To throw away!
With No Way to recover the money? Where $40,000. underwater? Short sale people! What else do they want some blood too?
Realtor said I shall put it on my credit card Huh?
JUST so he could get his commission?
I told him to cancel our selling agreement! He's P-O!

Looks like foreclosure is our only option now!

[StartingOver08]

Was the buyer get financing thru FHA? One of the requirments is that the roof be sound and last a minimum of 5 years (its either 3 or 5 yrs). So if the buyer was FHA and the roof could not meet minimum requirements, then the buyer had to find another property as FHA will not finance a property with a bad roof, unless the buyer switches the financing to FHA 203k program. The FHA 203k allows the buyer to do the work after closing and allows the buyer to finance more to pay for the work. However, the bank holding the current mortgage might object to the new mortgage being larger and them not getting it all. It is difficult with a short sale since the lender does not have to agree.

The Realtor should have looked at the roof right in the beginning and known it was going to be an issue. Sounds like the Realtor is a newbie.

If you really want to sell it short - and you have an approved deal, get with an EXPERIENCED Realtor immediately so they can replace that buyer with one that can pay for their own roof replacement!

[Catie34]

It was a not FFA loan.
The house is only 12 y/o and pass our home inspection 3 years ago so why it fail I do not know.