Buyers must be patient when purchasing home in a short sale
Q. I am interested in purchasing a property that is currently in foreclosure from a friend. What additional things do I need to worry about because the property is in foreclosure?
A. There will not be any significant differences on the purchaser's side. In the event this is a short sale, the transaction may take much longer than if it were not a short sale situation. A short sale is a transaction where one or more of the mortgage holders will not be paid in full.
In a short sale, the current mortgage holder(s) must evaluate the transaction before approving the sale. Given the quantity of foreclosures and short sales in today's market, this can often take weeks if not months. Be prepared to wait.
Q. My wife and I are listing our home for sale in a few weeks. About three years ago, our basement started leaking in one corner. We've owned this home for 18 years and this was the first time we gotten water in our basement.
We called one of the companies that advertises on the radio. They came out, dug around where the leak was and poured some stuff in the hole. Since then, we have not had any further water leaks.
The question now is do we have to disclose this to any potential buyer? Our realtor says no, because it isn't a problem anymore. Our attorney says the safe approach is to disclose you had a problem but that it is now corrected. What do you think?
A. It probably won't surprise you that I vote with the attorney. It's the safe, conservative approach and it makes sense for at least two reasons. One, a small water problem in the corner of the basement that was treated and has not recurred for three years is probably not going to scare anyone off. And two, if the problem does recur three days, three weeks or even three months after closing, the purchaser will be asking questions about prior problems with water leaks. Once they learn that you had prior issues with water in the basement, you will have a new problem, which is how to keep the purchaser from suing you.
Disclose the prior water leak on the Disclosure Report, explain on the report that since the treatment, no water has entered the basement and reduce or eliminate the possibility of having to deal with the issue after closing.
Q. My father is in a nursing home and is unable to speak or comprehend what I am saying. My mother died a few years ago. We need to sell his home to pay for the nursing home. If he cannot sign any documents, how do we sell his home?
A. First, before you sell his home, please speak to an attorney specializing in elderly law. There may be better ways to deal with your dad's financial issues.
If you do determine that his house needs to be sold, you will probably be required to open a guardian's estate in the county where your dad resides. You will request the court to have you or another of your dad's children appointed the guardian of your dad's estate and person. Once appointed, you will stand in the shoes of your father and will be able to act on his behalf.
You will probably need the services of an attorney familiar with probate law to accomplish this.
• Attorney Tom Resnick's column appears every other week in Homes Plus. Send your questions to Tom Resnick, 345 N. Quentin Road, Palatine IL 60067, by e-mail to tdr100@hotmail.com or call (847) 359-8983.