Updated over 8 years ago on . Most recent reply
What to Do When You Have A Lemon?
In a lot of trouble right now with a fixer upper - major foundational issues, built on a flood plane, and the place is just full of mold. Really thought I was getting myself a good deal but the inspector missed a lot and now I'm kinda flatfooted. It was a foreclosed property too so I'm dealing with the bank. Do I have any legal standing here? I've kinda sunk a lot of my seed capital into this one but do I cut my losses or is there another option to pursue?
Most Popular Reply
Have you actually closed on the property? You have a few options I can think of.
1. Calculate the ROI on needed repairs and see if you can get out with your hide intact if you rehab the property. Mold and foundations can be dealt with. Flood insurance might only be a few hundred dollars per year, though it could be a lot higher.
2. Consider suing your home inspector if he missed things he should have seen. He should carry an E&O policy to cover things like this.
3. Put the property back on the market and see if you can dump it. Recover what capital you can and move on to a better deal. Depending on the numbers, that could be the best option to get out while limiting your losses.