Home Buying in 30319>Question Details

Noobie1, Home Buyer in 30319

Does a developer / sellers agent have to disclose if a builder is facing foreclosure ?

Asked by Noobie1, 30319 Wed Oct 21, 2009

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5
Disclosure! Disclosure! Disclosure! It always does not hurt to say it all.

Aaron Mtuanwi
Solid Source Realty
678-499-6065
aaron.mtuanwi@gmail.com
1 vote Thank Flag Link Wed Oct 21, 2009
Watch out. They SHOULD disclose, but don't count on it. The listing agent may not know the developer is facing foreclosure. Depending on what you are worried about, either a specific home going into foreclosure, other home in a subdivision going into forclosure from the developer, or the builder going into bankruptcy, there are different things to check and and ways to protect yourself.

What, more specifically, is your situation and what are you concerned about happening?

Ben Hester
bensellsatlanta@gmail.com
http://www.bensellsatlanta.com
0 votes Thank Flag Link Wed Oct 21, 2009
This can be a difficult situation. On one hand the listing agent has a responsibility to protect the interest of the Seller but on the other hand all parties are obligated to disclose any known facts that can potentially harm the other party. If you suspect the property is facing foreclosure you can usually find out by checking the tax record. Check the county tax information for foreclosure filings. You can also request that the seller/listing agent give you proof that that the mortgage is in good standing with the lender.
0 votes Thank Flag Link Wed Oct 21, 2009
YES! This could have a negative impact on any warranty or defective workmanship later discovered by the buyer(s). FULL Disclosure is not only required, it's the right thing to do!
0 votes Thank Flag Link Wed Oct 21, 2009
If the seller's agent is truly working for the seller, then their obligation is to the seller to be confidential about the seller's personal situation. Please remember a seller's status as to whether they are facing foreclosure or not, can change at any time. It is not the responsibility of the listing agent to keep the public informed of the financial condition of a seller. Their fiduciary responsibility is to the seller in their exclusive right to list contract. If the home indeed is in foreclosure then the bank is your seller.
0 votes Thank Flag Link Wed Oct 21, 2009
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