Please help! My wife and I are buying out first investment property. Seller accepted our offer 3 weeks ago but only let us in for a 2 hour windows during our 10 Day inspection period. After inspections he informed our agent that there might be lead based paint, there is a foundation issue that costs 20k to fix, there is thousands of dollars for the water bill unpaid, the house has been vandalized with about 7k worth of damage, along with saying there is a bunch of water coming into the basement. He has filing a police report for when the house was vandalized and needs to postpone closing (after stating he was backing out of the deal) due to insurance on the house but stating they are not fixing any of the damage. We have a demand letter going to the seller from our layer but what the heck else do we do in this situation?! What if they don’t close? What if they don’t fix the vandalized items etc? ANY insight would be helpful.
They have to fix those items prior to closing if it happened during the contract. If seller is unable to you guys can cancel or negotiate. I'd ask a local attorney for clarification.
Nathaniel, worst case scenario can't you just back out of the deal? It sounds like you're past your inspection contingency period, but if you put a financing contingency in there, there's probably not going to be a lender who will lend with known structural issues. This would give you an out as you're unable to attain financing, therefore you could get your earnest money back.
What do you want to accomplish? To make the seller fix everything and still sell at same price on same time schedule?
You don't provide enough details but here is what I guess happened:
The subject was vacant and someone broke in and vandalized property, cost $7000.
Lead based paint is not covered by any insurance and they aren't going to remove it so skip that issue. If built before 1976 you should have assumed there was lead based paint, as that's what was used.
Foundation is the biggest one. If the foundation is crumbling, sinking or needs a $20000 jack hammer and concrete mixer truck no lender is going to close on this property as it sits. You would need to switch to a hard money lender and have a 30-40% down payment and pay a high rate until it's fixed. Is the property red tagged? If so the seller knew and failed to disclose you might have recourse in the court. Does the seller have money?
Water bill unpaid- whose name is on the bill? Ask the water company if they would allow new owner to just start a new bill or is it a lien on title?
Does the seller have insurance? Is the subject "insurable"? You need it to be to do a loan. What did the vandals do?
@Landon Bleau we are using our HELOC but the guy is basically making this crap up because he doesn't want to sell. He stated there are 27k total worth of repairs aside from all other cosmetic stuff. He's just being the most bizarre and difficult seller in the history of humanity.
@Nathaniel Molnar Why do you think the seller doesn't want to sell now? Did you get a good deal on the property and he's having sellers remorse? Did he get a better offer? Are you just assuming he's wanting to back out? When you did your inspection, did the foundation issues come up in the report? I don't think you've made it very clear what you want to do, whether that's get out of the deal or close. I don't think many people on this site can help you with the information you've provided. No matter what though, you need to contact a real estate attorney and have them handle it for you.
and you want to buy this house WHY foundaiton issue broke into and stripped can you not see this is not an appropriate investment for someone starting out at ANY Price you going to get hosed you buy that property .. its a blessing just walk away and look for something in a better area in better shape.