I find it hard to believe with an inspection on 3/6 you are still jerking around trying to figure out what problems you might have. You should have told your attorney that there were possible 'issues' with the inspection that needed resolution so he could protect your options. Your agent does not sound like the sharpest tack in the box either from what information you give, but there is probably more to it than that.
You need to talk with your attorney to find out your legal options, if any asap.
First of all, if you remember the sump pit in the basement, look to see if there are two discharge pipes leaving or one. If two (and there's no battery backup system nearby) it is a sewage ejector or overhead sewer. If it is just one pipe it is a sump pit and handles excess moisture/water/drain tile. Is the plywood covering an old catch basin in the back? Those were installed mid century to help lessen the workload on sewer systems as they remained undersized in relation to the capacity they were handling (population booms). They were there to catch grease and other fun things and allow remaining effluent waste to head back to the sewer system.
Where is your inspector in this? Have you reached out to him/her for a little handholding? It sounds like this deal has plenty of chiefs and needs a few indians. There are certain risks inspecting any home with the water shut off--was it winterized? There is a lot of missing information for us to help you out and I certainly feel your anguish in the process. Keep us posted...
If you are intent on moving forward, the Realtors involved are communicating fully with the asset managers and everything is spelled out in writing, the dates can be extended and the per diem waived. All critical information for a decision to be made must be made available to the asset managers so they are able to have all factors available when the file is open on their desk to process the decision.
Again REO's can be a good buy in a depressed market, but they take effort or commitment from the buyers and Realtors involved.
You can request that the water be turned on for your inspection so that the inspector is able to perform a "full inspection". Your inspection contingency has a date in which the issues are to be addressed.....call your attorney.
What disclosed information are you looking for? Bank owned homes are sold with no disclosures and are being sold "AS/IS".
All of your questions should have been answered while you were going through the buying process.
I would recommend that you call your attorney ASAP to get all of your concerns addressed and provide you with answers and options.
Laura Karambelas SFR, CREN, RCC, CNHS
Short Sale & Foreclosure Resource Agent
Baird & Warner
Americorp Real Estate
Brokers Associate, e-PRO
First of all, read your purchase agreement documents. They make up the legal agreement in this transaction. I think some of your concerns/issues were answered below by the home inspector and lender as far has options available to you but you end by saying "I love the house". If you are intent in moving forward with the purchase sounds like A LOT of communication needs to take place. Unfortunately in a REO transaction there are Asset Managers out there representing the banks that are dealing with many FILES (which is all this is to them) Sometimes the communication doesn't trickle down to the agents involved as clearly as it should if the agents have not worked with REO properties before....REO's are notorious for having very little information and it is truly a BUYER BEWARE market. Typically an inspection is at the COST of the buyer with the approval of the REO Asset Manager. I'm going to assume you are paying cash as most appraisals would require the utilities be turned on. Bottom line, talk to your Realtor.....if you feel she is upset about not getting half of the commission find that out and if it is an issue speak with the Broker to work through that. REO's have Fannie Mae guidelines addressing the commission not being able to be cut on properties so I'm not sure what part that is truly playing in this scenerio.
Bottom line.....COMMUNICATION and ltos of it.
On 3/29, our realtor sent an email to K, the agent for the house inquiring about the water being turned on and the response from Kâ€¦. â€œIf they turn the water on and it spills all over, which it will due to pipe damage, are they willing to take on that responsibility? The water can be turned on at the main but WILL spill all over if not shut off right away. This cannot be done by your client or any other representative without a Hold Harmless.â€
THE NEXT DAY, 3/30, our realtor rcvd. a call from C, a different person from that office stating that the house had been dewinterized and that repairs were made and the water WAS ON; I was dumbfounded. Later that day, we met our realtor at the house and THE WATER WAS NOT ON. A little water came out of the basement bathroom sink but that was it. Our realtor let us listen to the voice message and then she called C to let her know that the water wasnâ€™t on, blah blah blah. C denied leaving a message, but clearly on the message you can hear her begin by saying her nameâ€¦. During the conversation, our realtor told us that C asked if we would be occupants of the house and she responded, yesâ€¦..our realtor said that Câ€™s response was, â€œI hate thoseâ€. I guess what C meant was, non-investors? I guess investors would pay cash for the house, not have to deal with passing an appraisal, make the repairs and pocket a profit after resaleâ€¦â€¦
SO DEPRESSINGâ€¦â€¦Per our mortgage broker, weâ€™re ready to go, our VA financing is ready to go. I guess, go out the window. Furthermore, we are first time homebuyers, need I say more. DEADLINE=4/30/10
Any comments would be much appreciated!
Also, the VA will not back us without a complete appraisal, meaning if we are going to move forward, my husband says we'll have to go unconventional.
Per the VA Appraisal which was done 3/18/10.......
There is currently no heat and water in the house.
Items to be repaired as follows:
1. Turn heat on
2. Turn water on
This weekend a request to postpone closing until 4/16 was submitted by our attorney; minus the $100/per diem.
I guess we need to hire a plumber before moving forward...to determine how much $ we may be out.
@ Laura K. - Thanks for "A closing can be scheduled a few days......"
@ Matt L. - re: sump pump "as is" - Correct, so why are we being told that the water can't be turned on until.....
@ Linda R. - Thank you.....REO's are notorious for having very little information and it is truly a BUYER BEWARE market. Typically an inspection is at the COST of the buyer with the approval of the REO Asset Manager. I'm going to assume you are paying cash as most appraisals would require the utilities be turned on.....
(Yes, the VA Appraiser has been out twice)
@ Ross N. - I'll send you a few pix of the sump pump
@ Michael C. - Our loan officer, has been the most help
@ Philip S. - I agree with the majority of what you stated.....esp. about still jerking around on others' part, not ours. That's why, I say, "People are playing games" and this has been an unpleasant experience. I wasn't expecting perfection, but.......
I will f/u......Thanks much!