Home Buying in 95655>Question Details

Mm, Other/Just Looking in 95655

If the bank paid for some repair work, as buyer do have right to know how the money has been spend?

Asked by Mm, 95655 Thu May 27, 2010

i am in contract buying a house. i know the bank paid for doing something before we signed the contract. The sell agency might stop some of work after we signed the contract. do i have right to check on how the bank money spent on this house? How should i handle the issue if sell agent reject our request?

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In California, a bank owned home gives minimal disclosures on the home. The REO advisory that you sign advises you of the minimum that the bank is still responsible for disclosing. HOWEVER, the listing agent is required to give full disclosure on their knowledge of the home, whether it be through conversations with the homeowner when they left, comments by the neighbors, or improvements that they completed at the instructions of the bank. Anything deemed relevant to the decision for you to purchase of the home is required to be disclosed.

I would have my buyer's agent press the listing agent for full disclosure on those items that you are questioning.

But I think I might be missing part of your question with my response. The home needs to be in the same condition, or better than, when you signed your offer and it was accepted. Any planned improvements, unless specified to you and relied on in making your offer, are not required to be completed once you sign an offer. That's why it might make sense to elaborate on those repairs that you are expecting as part of your offer, if some were promised and had not been completed yet.

Again, your buyer's agent should be able to help you with this issue.
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Thu May 27, 2010
MM
When you buy a bank owned home, you are buying a home in as is condition unless you negotiate any repairs up front. If the bank did some repairs prior to your buying the home they were most likely the result of the recomendation of the listing agent. As an REO Realtor I have to make these types of suggestions to the bank all the time. They either decide to do them or not. You probably also waived your right to seller disclosures and insurance claims history reports since the home is bank owned. The best advice is consult your realtor if this is material to your purchasing the home ask again and if they still don't want to tell you then you either have the option of walking (again consult your agent and your contract for the terms of how earnest money is handled in that case) or proceeding with the purchase without that knowledge. If all else fails, consult a real estate attorney if it is really that big of a deal. I cannot imagine that it would be, but I don't know.
Good luck
Kent
0 votes Thank Flag Link Thu May 27, 2010
Probably not, it is not your house or your money. But, just to ease your mind i had a similar situation a while back where the bank started doing some repairs just as we were in negotiation. I had similar worries. We continued because I knew that once the work was completed ther would be other buyers bidding on this home that was now all fixed-up.

The bank completed the work. They probably already contracted to have it done and were not about to cancel. What if my Buyer's deal fell through? They would have to start all over again.

By the way, my Buyer got a great deal!
0 votes Thank Flag Link Thu May 27, 2010
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