I provide a handy dandy tip sheet for buyer's agents on my Sacramento short sales, which I attach to MLS. Not everybody understands what it's like to be a Sacramento short sale agent. My tip sheet explains much about the short sale process and how short sales work. One of the items on that list is the fact the home is sold in its "as is" condition. This means the bank will do no repairs and give no credit for condition.
It doesn't matter if the buyer discovers through a home inspection that the AC unit is underutilized or inoperative. No repairs. As is. It doesn't matter if the buyer discovers through a pest inspection that dry rot or termites are present. No repairs, as is. It also doesn't matter if thugs steal the AC unit, which I've had happen 3 times last year. No repairs, as is. In exchange for the lender's loss, the home is sold "as is."
A short sale is similar to an REO but unlike an REO the bank does not want to see a Request for Repair nor an addendum lowering the price -- because the bank has made it clear through the arm's length affidavit that the home is sold as is. Any defects become the buyer's responsibility. The bank is under no obligation to even sell this home as a short sale.
Are there ever exceptions to this? Very rarely. In fact, the odds against it are so rare that it is more cost effective for the sellers to resell the short sale to another buyer who isn't freaking out over repairs than to try to renegotiate with the bank. To consider a repair or credit request, the bank need an addendum signed by both parties. The bank will also want 3 repair estimates. By the time buyers can get that together and the bank rejects it, the sellers could have closed with a different buyer.
Lately, I've been including verbiage in my addendums with buyers in Sacramento that state: The home is sold in its as is condition. This means negotiations are over. The buyer understands there will be no repairs, whatsoever, for any reason. Sometimes I think about adding: "On God's Green Earth," and maybe I'll start including that verbiage, too. Yet, still, buyers are under the impression the bank will pay for a repair. Where do they get this, I wonder?
Moreover, since when does a listing agent's fiduciary switch from the seller to the buyer? Answer: It doesn't.