Home Buying in 96022>Question Details

Ggpvet, Home Buyer in Shasta Lake, CA

I have made an offer on a FannyMae repo in Cottonwood CA. The inspection indicated that it has a bad roof. The seller re-verified with their own insp

Asked by Ggpvet, Shasta Lake, CA Thu Dec 9, 2010

The appraiser -- never mentioned the roof in her report. She never inspected the roof per her report.

I offered to pay 1/2 of the cost. FannyMae excepted the offer and verbally committed to pay the remaining cost and have repairs done at closing. They have recently changed their minds and have decided that they will lower the price of the cost of the home to meet their 1/2 cost. This of course puts the entire cash cost of the roof on me. My question is: Under title 24 in CA, is the seller required to fix serious title 24 problems? We are in the winter storm season, we haven't had a strong storm yet but we will. Would Fanny Mae really risk a sale on a home with a bad roof that if not fixed soon might lead to other more serious problems? -- George

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Property is typically sold as-is unless the purchase contract, and or any written addenda, specifically detail repairs... Since your original post was back in 2010, can you update us on how it went?
0 votes Thank Flag Link Mon Dec 2, 2013
Title 24 relates to building standards for new construction or alterations made to an existing building. Title 24 is obviously not applicable here.
While a seller is required to disclose all pertinent, known facts to a buyer, it is not required to make any repairs. The sale of real property in California is strictly as-is, unless otherwise agreed to by all parties. In your case, the seller supposedly verbally agreed to pay for half the cost of a roof repair. It is more likely that the seller never agreed to make the repair but only agreed to credit half the cost of the roof repair back at COE, and somehow this was miscommunicated between the parties.
At this point the only question before you is do you still want the home; FNMA does not care what you do. They will absolutely let you walk away, and not lose a wink of sleep over it.
0 votes Thank Flag Link Mon Dec 2, 2013
As a retired realtor who also was a loan officer, I can tell you that Rian Muleback is absolutely right. I too live in California and bought a foreclosed home two years ago. They don't care. That is basically the case. When you made the offer on the property you were entitled to your inspections but basically agreed to take the house as is. You re-negotiated with them. At this point yes they will risk the sale, however now they have to disclose the defective roof if you should back out to another buyer. This is our tax dollars at work. Or I should say not at work. Because Fannie and Freddy both will be bailed out of this situation in the end.
0 votes Thank Flag Link Thu Dec 13, 2012
I do not know the laws in CA so you will have to seek legal advice for the answer to that part but I can tell you this. I have helped others buy quite a few homes from banks and one thing I always see is the bank will send you back their contract even if they accept your offer. This means that you have to sign their contract that puts everything in their favor. It allows them to do just about anything they want, usually, without you having any recourse. FannieMae does not care if you walk away or not, it is that simple. They just want the house gone and the assest manager most likely made a mistake when they said the bank would pay for 1/2 of the roof. The best thing to do is analyze the deal and see if it still makes sense for you to purchase the home if you have to pay for half the roof repair.
0 votes Thank Flag Link Thu Dec 9, 2010
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