Hi BP, I need some advice on what steps to take. I feel like I am getting screw here. The story goes, I made an offer on a Foreclosure property and the week before closing (Oct. 31) I asked my agent (Monday, Oct 24) to get permission for a final walk through (Today, Oct 27) before I wire the rest of the funds. When we got the reply back from the selling agent (Tuesday, Oct 25), she mention that the house was broken into and the copper piping were stolen. Now my agent and I are wondering why did they wait till the last week to notify us of the damages and would they have even told us if we did not ask for a final walk through. The selling agent also, told us, if we would have got a repair estimate in before the HUD was process (Wednesday, Oct 26) we could have got a credit for the necessary repair work. Since we pass that period (WOW... a day notice) the seller will not credit me anymore and that the damage was minimal (ALL the water pipes and ground wire from the water main to all faucet were taken, plus broken A/C pipes and sewer pipes). My questions are; can I still get the seller to fix or credit for the repair even though the property is a foreclosure and sold a-is? Can we ask for a extension without being penalize since I was not given proper notification about the damage and to get a estimate. And worst case scenario, if I back out, can I get my deposit back since the property is not in the same condition when I first made the offer. Any advice/suggestion is appreciated. The sooner, the better since i need to send the funds by tomorrow, if I decide to buy it.
that happed to me on house #30 or #31. but i got a $1,500 credit back.
if the deal is good enough, i'd take it, but i can do plumbing quick, so not a big deal for me.
btw, if you are geting a loan on that, you are lucky it happened now because the bank wont allow you a loan unless the pipes are there.
that might be an option...tell the listing agent that if you back out, the next buyer HAS to be cash since they wont qualify for a loan.
Take a close look at your contract. I would think that it has "seller agrees to maintain the property in its current condition". If it does, tell the seller it's his problem. Either way its his problem, you haven't bought it yet. You have a great case for getting your deposit back. It's the seller that is not holding up his end of the deal.
I would demand the seller repairs it back to the agreed condition or for your money back.
George - Yes this is a cash deal. I am getting the property at half the value and I can quickly do the plumbing myself. The only thing is that I would at least like to be compensated for the damages that I did not agree to when I made the offer. Do you think it's wise to threat the seller to cancel the transaction and ask for my earnest money if I don't get some type of credit?
John - I will look into that. Thanks.
Get an estimate right away and submit it for a credit. Then, it's your choice, close or get your EM back, as per almost every purchase contract I've ever seen. Just because the closing has been "prepared", doesn't mean jack sh$$. It's just a ploy from the listing agent, trying to look good to his client.
I had a Ac unit stolen 5 days before closing and submitted bid and received credit on a reo
There is that from the initial contract letter WB-11.
This is from the counter offer & Addendum. Can I use the WB-11 to argue against this one and gain the upper hand on the situation? Or is it a lost cause?
So you know, the addendum overrides anything in the base purchase contract. But, these are two different clauses, and the addendum clause you posted does Not pertain the condition clause you posted, and therefore does Not override it. Should they not agree to a credit, you shouldn't have any issue getting your EM back, if you choose not to close.
Originally posted by @Eddie Vang :
Now my agent and I are wondering (1) why did they wait till the last week to notify us of the damages and (2) would they have even told us if we did not ask for a final walk through.
(1) Because "REO Specialist" agents are disproportionately complete scumbags, for whatever reason.
If the sale is distressed in any way, be it short sale, foreclosure, or anything similar, just assume the seller's side of the transaction is a giant pile of unethical snakes, until proven otherwise.
If any ethical "REO Specialist" listing agents out there want to prove me wrong by acting ethical, please by all means feel free to prove me wrong, and go do a single ethical thing within the next 60 days. Just one thing.
Okay good. That's what i needed to know. I will talk with my agent. Thanks
Join the Largest Real Estate Investing Community
Basic membership is free, forever.