Soon I will be putting a home on the Market that will be a short sale. There is a tenant in place. I have done many sales of homes with tenants in the house. I understand how important it is to get the tenant's cooperation and keep everyone comfortable.
To sell a house you must be able to show it and hopefully make those showings easy for the potential Buyers. I have experienced the perfect scenario where you have a cooperative and understanding tenant and I have had tenants in properties that do not understand how necessary selling the property is to the owner, which results in a lack of cooperation. I have compassion for everyone involved. There is no doubt about it selling a house is stressful. A tenant doesn't understand why they must be disturbed and are anxious about their privacy and have the additional worry of finding a new home. The Seller is concerned about getting their house under a valid contract.
It is a pleasure to meet those who do not just think only of their situation and try to work with us while making plans for the changes they must incur. The one thing for sure in this day and age one must be flexible. Change is always coming.
With short sales the situation can be even more complex. For example, when should a Seller evict a tenant if they have a month to month rental agreement? In times past when you went into escrow you usually gave the tenant their 30 day notice. But now, with a short sale, the process can be months and months until you get to a conclusion. And, sometimes the end does not result in how you originally planned. A dilemma for everyone, for sure.
Some scenarios for short sale tenant situations are: If there is a lease in place the lease goes with the property. A good scenario for an investor. If the tenant is on a month to month situation than it can be required that the Buyer does not move in until the tenant has vacated. It can even be written so that it is the new Buyer's responsibility to remove the tenant. Since a short sale can take so long to get approval from the Bank one might want to consider on a month to month rental that the thirty day notice to vacate begin upon acceptance from the Bank. Usually after Bank approval the escrow moves along at a traditional speed.
One thing for certain, our new Real Estate World continues to have its complications.
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