Natomas short sale buyers pulled up in front of a home in the Sacramento neighborhood of Natomas Crossing yesterday to do their home inspection. First thing we noticed was a garage sale sign plastered over the listing agent's for sale sign. Another sign was taped to the front door: "All appliances and furniture for sale."
It was bad enough the short sale seller rescheduled the home inspection on the 4th of July. The buyers originally had made an appointment for 9:30 AM so they could finish up before noon and enjoy the rest of the holiday. When I called to confirm, the seller claimed that time was inconvenient and pushed us off until noon. His wife was home during the inspection, too, and the listing agent was out-of-town, taking a holiday.
It would have been nice to have taken this particular Saturday off but that's not always possible when one is a Sacramento short sale agent. We do what it takes to get these short sales closed. Attending a 3-hour home inspection in the middle of the afternoon on the 4th of July is one of those duties. Floating down the Sacramento River in an inner tube is not one of those duties.
The next thing I noticed upon entering the home was the chandelier over the dining area had been removed, plus two light pendants in the family room were gone. I found them on the floor in a spare bedroom near boxes stuffed with cartons of cigarettes.
Enterprising folks, these sellers. Wholesaling cigarettes and birds. In the back yard was a large aviary occupied by more than a 100 tweeting canaries and finches.
The seller's wife appeared stunned after our chat. I explained that they can't remove a fixture. Fixtures stay with the home. Although such a discussion is ordinarily best left to the listing agent, I was concerned that if I didn't say something to her then, she might also sell the front door over the weekend.
The buyers made an offer to buy the refrigerator, washer and dryer for $500. Oh, no, the seller replied, those appliances cost $2,200 when purchased 3 years ago. The seller wanted $1,500. It was clear the seller was clueless, which worried me a little, so I asked if she was aware that we're closing escrow in 10 days.
Mrs. Seller just smiled and said, "I guess the buyers will be moving in next month, then?" Um, no, they will be moving in on the day we close, in the middle of July. Her smile vanished.
Gosh, I hope they don't try to sell the stove and dishwasher.
Elizabeth Weintraub is an author, homebuying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
Sacramento Short Sale Agent, Elizabeth Weintraub, has the answers to your Sacramento short sale questions.
Photo: Big Stock Photo
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Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available through bookstores everywhere and at Amazon.com.
Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.
The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.
The listing agent needs to talk to them now. . .if there will be a closing in the future.
Perfect example that unexperienced agents should not be doing short sales. . .
Actually, Fernando, the listing agent for this particular Natomas home is a very well versed and competent short sale agent in Sacramento, and a delight to work with. Her sellers are simply a bit unorthodox.
Elizabeth - Seems like some of the short sale sellers get a foreclosure owner mentality. I don't think they are justified even in a foreclosure situation in taking fixtures, but the mindset can be there. So they lost their home ... it shouldn't make them a thief. They should know that they can be followed and a judgment created against them. They are working against themselves even as they are helping themselves with the benefit of a short sale. I hope you are taking the 5th ... off that is!
Elizabeth
We try to do everything right that we can and some how we get caught up in the avenues of having to put out un called for fires.
UGH. Thank goodness you were there to make this discovery ahead of the close of escrow. One of my short sale sellers last year tried to do this as well even though I had explained when I initially listed the house what was a fixture and what was personal property...I guess they forgot all that a couple months later when the short sale was approved? Luckily the buyer's mother lived across the street and called me when she noticed that the sellers were having a garage sale and trying to sell fixtures. Crisis averted.
Hi Jim: I think you hit the nail on the head. Some short sale sellers are in foreclosure and carry a lot of anger toward the lender, sometimes justifiably so. But they aren't hurting the lender when they remove fixtures. They're hurting a buyer who did nothing to them but offer to buy their home and avert the foreclosure.
With some Sacramento short sales, sometimes my buyers are lucky to get the keys much less find the home in presentable condition at closing. It's a pity there's no such thing as the real estate police.
I always tell my sellers that if they want a particular fixtrure to replace it BEFORE we market the house. If a buyer sees it, it stays. Do you have disclosures that list what does and doesn't stay as part of your CA contracts? Ours in GA is detailed to the point it has face plate covers and phone jacks listed on it to be either checked to stay or to be removed.
After not making payments for some time and then selling all the fixtures. Sounds like a desperate seller that just doesn't care about the the documents they agreed to.
WOW! It continues to amaze me that there are still sellers out there doing such ridiculous things before they leave the property. I am a big believer in KARMA..it WILL come back to haunt you!
We have not had this kind of problem with our sellers....everything has stayed....and they have been so grateful, they have left things as well....
Wow, Tammy, sounds like Georgia has a great form. We don't have anything as detailed as that. Our purchase agreements list a series of items that stay with the home, but there are no boxes to check. And our TDS (transfer disclosure statement) contains boxes that indicate certain appliances remain, but it's not really comprehensive.
A seller in Sacramento a few weeks back told me she was taking the Bosch dishwasher, of all things. Before I put her short sale on the market, I made her replace the dishwasher. Just makes life easier and less complicated because you're right: if the buyer sees it, the buyer will want it. If it's a fixture, then it belongs to the buyer.
Elizabeth - I'm aware of one homeowner who is turning over the keys to the lender, but has removed the relatively new vinyl picket fencing that surrounds the property, among other things. There's a whole lot of stripping going on, and that's not the kind that requires a stage:-)
My guess is this is a widespread problem.
Sellers have no equity in the short sale. They feel like improvements they have made should somehow not be considered part of the house they originally put up for collateral.
They want to take away something -- why not the new stuff they paid for (cash or credit)?
We all know it's wrong. It violates our contracts. It hurts our feelings. It hurts our buyers -- not the lenders.
BUT WHAT IS THE ACTUAL ENFORCEMENT MECHANISM?
WHAT IS REALLY GOING TO HAPPEN TO THEM.
WHAT STEPS HAVE YOU (OR YOUR BUYER) TAKEN? HOW DID IT TURN OUT?
Does anyone have some concrete clarity on these questions?
Or did they carry away the concrete, too...along with everything INCLUDING THE KITCHEN SINK.
Hi Jim: Buyers have recourse since they possess a signed contract that says the fixtures remain. Depending on the dollar value, they do have the option of pursuing it in Small Claims. In this particular instance, though, the seller is replacing the light fixtures.
I have heard that foreclosure banks -- those whose security for the loan has been jeopardized by foreclosure stripping -- submit claims with the homeowner's insurance company, and then the insurance company goes after the homeowners.