Couple of years ago, I was under short sale contract to buy my neighbor's house. I walked away from that deal because the inspection found a leaking underground oil tank. Now this house is in foreclosure and put in auction by the bank to sell it as-is. I crunched the numbers again and it seems like a good deal for rehab and rental ONLY if someone remove the tank and clean up the contamination.
Since I know for fact there's a leaking oil tank, should I report this to the town and have them to force the bank to clean that mess up before put it on sale? Is that the right thing to do? After all, I don't want any of the leakage spill into my side too. Anyone have any other suggestions? I really want to put my bid in this house again.
You might want to contact the EPA @Weikang Chen to see if they have been notified of the leak. In many states/jurisdictions a leaking oil tank must be reported (it may even be a federal law, I'm not sure). The cleanup cost could be in the tens of thousands of dollars (or more). There was a recent case in my hometown where an abandoned property was taken over by the city and then it was determined that an underground oil tank had contaminated an adjacent property. The cleanup was over $100K and the city was required to do the cleanup.
Environmental liabilities can be very expensive. You may want to start by calling your state's environmental agency. Good luck.