Emergency - Vandalism 1 day before closing

Baltimore, MD · Member since 2014 · 146 posts · 63 votes

Fannie Mae house set to close tomorrow and the final walk through discovered all copper pipes have been removed. I want the house, but what do I do.

I'm at a lost.....All utilities was on and functional during the appraisal. How should I handle this.

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Greg H.Pro Member

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Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes

11y

Did you do the walk through with you agent ? Have you agent call the listing agent so they can notify the asset manager.

I would delay the closing until I had an estimate for the repair as these can get expensive. Ask FNMA for a reduction in price do to the damage. This is compounded a little bit since you are getting a loan instead of paying cash . It is probably going to take a couple of weeks of so to get sorted out but I would advise against closing without getting a clearer picture

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Ryan Dossey
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
11y
I'm with @Jay Hinrichs on this one. Next you're going to lose an outside Ac Unit.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Ryan Dossey this is the exact reason these homes go through this cycle. you have a new investor buying in a very challenging area.. the success rate for more than 36 months is no more than 50/50 ... if you want to see what your urban core rental will look like in 3 to 5 years.. well your looking at it when you buy it and it needs major reno... in my mind this is the province for very experienced landlords that have hundreds of these.. For a first purchase I don't think you could buy a risker investment
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J ScottPro Member
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Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
11y
I've been in this situation several times. Typically, as Greg H. pointed out, FNMA will agree to a concession or a repair (you don't want them to repair if you have the choice). Sometimes they will play hardball, in which case, they'll typically agree to give you back your EM if you don't want to move forward.
My suggestion is to request a specific amount in concessions and see what they say. If they say no, I would ask the listing agent if s/he filed a police report for the vandalism on the house that is about to change possession. Normally, this is enough to get the listing agent motivated to get you a concession (they don't like having to waste time filing a useless police report, but they're obligated to do it if you make a big deal about it).
Ultimately, I think you can get something in return. But, you certainly won't get anything after closing, regardless of what your agent says. And, if you agent really likes the idea of trying to get money after closing, ask your agent to front his/her commission and then go after FNMA to be reimbursed after closing...see what she says... :)
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Kimberly H.
Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
11y
Unbelievable your agent actually suggested closing and then trying to get money.
@Kimberly H. what ended up happening?
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Kimberly H.
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Baltimore, MD · Member since 2014 · 146 posts · 63 votes
11y
Hey guys....I closed and only $2500 concession. Yippee!!
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Ricardo S.
Flipper/Rehabber · Atlanta, GA · Member since 2014 · 166 posts · 88 votes
11y
Originally posted by @Kimberly H.:

Hey guys....I closed and only $2500 concession. Yippee!!
Congrats.
Please post a success story and possibly tell us the numbers and pictures would be great!
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Randy E.
Rental Property Investor · Durham, NC · Member since 2014 · 1k+ posts · 1k+ votes
11y
Originally posted by @Kimberly H.:

Hey guys....I closed and only $2500 concession. Yippee!!
FANTASTIC! I hope the rest of the journey is less eventful.
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Kimberly H.
OP
Baltimore, MD · Member since 2014 · 146 posts · 63 votes
5y
Mistake see below.
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Kimberly H.
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Baltimore, MD · Member since 2014 · 146 posts · 63 votes
5y
Update: After 5 years. Overall it's been a wonderful experience. With the cooper pipes gone day 1. I was able to convert to gas and separate the utilities for the duplex. One tenant has been there the entire time, replaced a frig, stove and fixed the roof 2x. Rent on time and no major issues. Equity up 20% and life is pretty darn good! I now have 1 single family to add to the mix and that's been rented the last 2 years. Mice problem that an exterminator handled and plumbing issues that were fixed for under $500 bucks. I also had a flood.....NEVER do water remediation. Get a bunch of fans and treat for MOLD and call a waterproof company. Learned a valuable lesson. Overall..I would do this all over again! I also changed Realtors! I just bought a vacant lot for dirt cheap. I want to put 2 tiny house on for seniors. Don't ask me how! Thanks all!
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Jai Reddy
Edmond, OK · Member since 2012 · 456 posts · 270 votes
5y
@Kimberly H.
Considerate of you to post an update even after 5 years have gone by.
How is copper water pipes related to gas lines? Is it that replacement of those water lines opening up sheet rock to run new gas lines?
How is water remediation different from using fans to dry and calling a waterproof company?
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Kimberly H.
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Baltimore, MD · Member since 2014 · 146 posts · 63 votes
5y
Originally posted by @Jai Reddy:
@Kimberly H.
Considerate of you to post an update even after 5 years have gone by.
How is copper water pipes related to gas lines? Is it that replacement of those water lines opening up sheet rock to run new gas lines?
How is water remediation different from using fans to dry and calling a waterproof company?

Glad you asked. All pipes were cut. I had one furnace for the entire house and all the pipes to the radiators and the radiators were cut out. So thats why I converted.

Water remediation cost thousands. All they did was suck the water out, place commercial fans around the room and mediate for MOLD. That cost me close to $5,000. One week later another flood. I rented a machine to get the water out, rented high powered fans and sprayed for mold and used a mold tester. Called a waterproofing company to access and fix the problem. It was a basement flood that lack proper waterproofing around the house. Lessons learned.

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