Since the last post, we now have verbal agreement from both banks (first and second lienholders) that they will agree to the short sale. The second lienholder is taking about $2,000 less than they originally agreed to, but would get nothing should the property go into foreclosure.
Over the weekend, we had our home inspection done. The home is in pretty good shape, and is structurally sound. We have until Thursday of this week to complete our inspections. Since the property has a well, a water sample was taken, and will be tested for bacteria and chemical contaminates. The county will perform the test for free, if you bring the sample to them. The home inspector can collect and deliver the sample, and usually charges an additional fee for this service. It is still less expensive than having an independent company come out to the home and collect the sample, and run the testing.
This property also has a septic system, which should also be inspected. At this time, the buyers are not inspecting the septic system. If the water is free of bacteria, most likely the system is functioning as it should. Some counties require the seller to complete a septic inspection and file it with the county before or during the sale of their property, although Oakland County, which is where this property is located, does not.
Our schedule for this week is:
Recieve the signed documents from both banks, and send them to the new mortgage company and loan officer
Finalize the home inspection
Perform the appraisal and FHA inspection