Foreclosure in Milwaukee>Question Details

Gwen, Home Buyer in Milwaukee, WI

foclosed not in the same condition as when i made the offer on it what do i do

Asked by Gwen, Milwaukee, WI Wed Apr 8, 2009

i have a closeing date for 4-9-09 and today 4-8-09 i did a last walk in of the property and the property is not in the same condition it was when i made the offer and the agent said that i will still have to close due to its a as is.
what do i do at this point about 3 windows are out the kitchen sink is gone pipes are gone out of the basement ,the tub is gone and the bath room sink but the agent is telling me that i will still have to close on this property

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Kristin's answer is correct! When purchasing foreclosures you need to make sure you have a buyers agent to assist you through these type of transactions. Foreclosures are normal transaction and it is important that you have someone to assist you through the decision and negotiation process.

The other thing to bring up is that this damage is vandism and ask if the bank has filed a insurance claim with the forced place carrier and what is happening to those proceeds. I would still push back with the bank to indicate that it is not in the same condition and at least the proceeds from the insurance should be given to you.

The other question is how much earnest money you have deposited and your williness to walk away from those funds. The likelyhood of the bank sueing you for specific performance is not great. The bank could demand you finish the deal but there incentive is to close the property quickly and not delaying the closing. For them to sell the property to someone else, they would have to sign a release of earnest money; giving you, your earnest money and letting them sell the property to someone else.

But legally look at the contract and the reo addendums to see your legal rights. Then evaluate your options on the amount of work, why you really want the property, and the posibility that the bank will sue you for specific performance if you do not close. You may have to check with an attorney if you decide to walk if the contract limits that option.

Good luck.
0 votes Thank Flag Link Thu Apr 9, 2009
If you used a WB-11 Offer to Purchase, lines 115 to 123 address property damage between acceptance and closing. If the damage is over 5% the purchase price, you basically have the option to walk. If it's under 5%, the seller is obligated to restore the property to the condition as of the day of Offer.

Providing, of course, that you didn't sign any REO addendums that override that clause. Check your Offer paperwork carefully.

It's a shame you didn't have a Buyer's Agent representing you on this!
0 votes Thank Flag Link Wed Apr 8, 2009
Gwen, The WI residential offer to purchase allows for a final walk through to make certain the property is in the same or better condition as the day you made the offer. "As is" means there are no warranties or representations being made and the seller is not doing any repairs, it does not mean you need to accept the property as is, no matter what has happened to it. Your lender will not want to close once they hear of the damage either. Since I am assuming the agent is working as an agent of the seller, you can always contact a local real estate attorney such as Dave Sayas, to represent your best interests in resolving this. Good luck!
0 votes Thank Flag Link Wed Apr 8, 2009
"AS IS" meaning the condition it was in when you made the offer and it was accepted. That's the purpose of the final walk-thru, to make sure eveything is in the same condition. Unless there is verbage stating otherwise, you may be able to walk away because it's not in the same condition as when you offered. But these foreclosures do get tricky and they use alot of their own contracts. I would suggest you seek a legal opinion.
0 votes Thank Flag Link Wed Apr 8, 2009
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