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  Foreclosure Nightmare - Illinois
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Needing advice on what should/can be done at this point in my buying process.

Signed a purchase agreement. Between this time and the closing date, the utilities were turned off by the seller. They didn't inform us of this until over a month after they shut everything off. Between then, we had storms in the area, which caused the basement to flood.

We informed the sellers. They let us know that the basement was now treated and taken care of. When we went over to check, there was still water sitting in puddles - they had box fans blowing on them. There were also scrapes in the dry wall where the mold was removed. However they missed a few places where mold was growing. It was obvious that place hadn't been treated by a legit company.

My realtor keeps going back to the fact that we're buying "as-is". But isn't "as-is" defined as the condition of the home when the purchase agreement is signed? So if damage is caused by the seller before the closing date, they need to restore the home to its original state?

Not sure how to handle the flooding and mold issue due to safety/health hazards. Are the sellers required to get a certified company to treat the basement now that mold has been found?

Can they just sit back and do nothing?

What should I be doing or seeking from them?

Right now my realtor isn't helping much, and the closing date is set for the 29th.

Any help is greatly appreciated.
Posts: 2 | Registered: Jul 22, 2013Reply With QuoteReport This Post
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Your contractual agreement is spelled out in your contract, what does it say?

Do you want to buy the house in the condition it is in now?

Why do you think the sellers may be required to have a "certified company" treat the mold issue? Is this in your contract or does you state has such a law?

Again, first decide do you still want it as-is today, how bad is the mold, some mold is minor and easily fixed. Don't assume there is a real health and safety issue just because there is mold, it may be easily removed with no future risk.

Is this a bank owned property, your title called it a foreclosure nightmare?
Posts: 2468 | Location: Southern CA (Southbay) | Registered: Nov 08, 2005Reply With QuoteReport This Post
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Yes it's bank owned. Yes we still want the house. We just would like the house in the condition it was in when we signed the purchase agreement.

I guess that's what I'm wondering - Given that the damage was caused due to their negligence, do they legally have any obligations to fix the damage they caused? This would be outside anything in the contract - since the contract language doesn't cover this specifically and is pretty ambiguous.
Posts: 2 | Registered: Jul 22, 2013Reply With QuoteReport This Post
Picture of Charming
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Thorxes, Thanks for posting - What an absolute mess! Is your agent representing you or the seller? (As 2e keep stating on the boards - buyers need to have a person representing their interests in a real estate transaction.) Because it sounds like this agent only wants to complete the transaction.

As Meischa mentioned - check your copy of the agreement to purchase/contract and see what it says about condition. Most will state it is the responsibility of the seller to maintain the condition of the property. If you still want the property - get a home in section. Ask your agent for several suggestions and pay out of your own pocket to have it done.

Good luck.

Fun and Info
Posts: 3564 | Location: Coastal SC | Registered: Jan 10, 2006Reply With QuoteReport This Post
Picture of real estate lady
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Key point - seller treated, and "was willing to treat"..that's a good thing.

Some banks are heartless when it comes to repairs..stating AS IS. Some do repairs. Obviously, however not to your satisfaction...they are trying to compensate for the damage by repairing. Get a copy of all professional treatment to the basement. Was it "Mold Remediation"? Make sure it was done by a professional mold remediation company!!

I think the ball "could" be in your court on this one, holding feet to fire until you are satisfied.

Was there any other damage? Can you call back your inspector who inspected the house, as he should have pictures of the basement at he time of initial inspection.

This is a bad point about Banks turning off utilities after contract, but it not all about the banks.
Realtors listing REOs (Real Estate Owned) properties have a contract with select Realtors to list their bank owned properties. The Realtor is responsible for the utilities and the bank reimburses the Realtor, in many cases.
Some banks won't even turn the utilities on from onset, even if the Realtor begs them to do so. Some Realtors can't afford the utility bills and wait for re-imbursements, if the bank is willing to do so. A lot of variables here.

I would ask the bank to pay for your costs in inspections of work performed due to utility delimma the listing end created, between seller/bank and the listing Brokerage/agent.

Do you have a buyers' Realtor or are you working with the sellers' Realtor?

This message has been edited. Last edited by: real estate lady,
Posts: 9271 | Registered: Aug 14, 2007Reply With QuoteReport This Post
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You're looking for help in all the wrong places. We don't have enough information and your agent either is unwilling or unable to take the bull by the horns. Get your contract to a lawyer familiar with your area now.
Posts: 748 | Registered: Jan 02, 2005Reply With QuoteReport This Post
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Yes, at this point in time, the real estate agent is either incapable or unwilling to help you resolve the problems, the bank does not care one bit about the situation and you don't have the background, knowledge or expertise to handle the matter on your own. I suggest that you IMMEDIATELY consult with an experienced real estate attorney in your area who is familar with foreclosure proceedings. IMMEDIATELY as you state that the 29th is the deadline ~ good luck and I mean that....
Posts: 6492 | Registered: Jan 01, 2008Reply With QuoteReport This Post
Picture of real estate lady
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Subject property is "bank owned" per your post, so you don't have to worry about "foreclosure proceedings" as that has already happened, IF that is the case.

I too am concerned about your representation as it seems you "may" have NONE. Who is your Realtor representating? If not you...who? The seller? Dual agent? Transactional? This should have been explained to you...."agency law".

I agree to contact a real estate attorney, who will explain your state laws concerning agency.
The attorney should also protect you regarding damage and require rightful mold remediation.
Help secure further inspections hopefully at sellers expense, extend closing date and hopefully straighten out your Realtor.

I know you say you want this home, however your attorney MAY advise to cancel the contract and get your deposit back.
Posts: 9271 | Registered: Aug 14, 2007Reply With QuoteReport This Post
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If you are looking for professional opinions on this you could also use RESAAS, a platform where only official realtors answer questions. Give that a go here:

Hope it helps! Smile
Posts: 13 | Registered: Aug 08, 2013Reply With QuoteReport This Post
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