Foreclosure in Perry>Question Details

Amber C,  in Flint, MI

Closed deal, didn't do walk thru, basement flooded. Any recourse? Foreclosure,as-is. No warranty.

Asked by Amber C, Flint, MI Fri Aug 10, 2007

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Not doing the walk through is what really hurt you here. Even when you buy an "AS-IS" property the seller is generally obligated to keep it in the condition you saw it when you first toured. Had you seen the flooded basement before you sat down at the settlement table, there may have been room to negotiate with the bank. At the end of the day they just want the property off their books. But having closed the deal, you essentially said that you accept the property, warts and all. As for the home inspection, if you had one you might call them to see what can be done but keep in mind their scope is limited to what they can reasonably see on the day of inspection. You might want to consult an attorney and see if you have any reasonable solutions.

Donna Saylor & Carolyn Mitchell
The Power of TWO!
3 votes Thank Flag Link Fri Aug 10, 2007
Talk to your broker. Consult an attorney. Call the inspector. Were you the buyer or the Realtor for the buyer?
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1 vote Thank Flag Link Sat Aug 11, 2007
Maureen Fran…, Real Estate Pro in Birmingham, MI
As is no warranty, foreclosure with no walk through..... hmm, really you need a lawyer!
1 vote Thank Flag Link Fri Aug 10, 2007
Amber, because you purchased the home as a bank owned home (REO), the bank would not have known if there was a problem with the basement. I'm thinking you did not have a professional home inspector inspect the property.

If you can prove that the bank or listing agent had known about the defect, I would think you would have a good case to attempt to collect money from them to pay for the damage. The most important aspect of this business is to disclose all known facts affecting the property. Good luck.
1 vote Thank Flag Link Fri Aug 10, 2007
Sorry to hear of your situation but I agree, if you had an inspection, pursue the inspector. Unfortunately, they usually carry very limitied liability which you would have agreed to by signing the inspector's contract. Somewhere along the line you would have also signed something from the bank stating that they have not lived in the property and have no knowledge of any issues. Definitely consult an attorney but I wouldn't get your hopes up. Good luck.
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1 vote Thank Flag Link Fri Aug 10, 2007
Did you have an inspection ? Banks still allow, some will fix situations and others won't. If you did, contact the inspector, if not contact a real estate attorney. But, my best assumption on limited information is that you have no recourse. However, I am not an attorney so seek the advice of one. I recommend attorneys on all transactions but especially foreclosures.
0 votes Thank Flag Link Wed Aug 15, 2007
One of the drawbacks of a foreclosure is "no warranty". I am afraid there is no recourse. Were there any inspections prior to sale?
0 votes Thank Flag Link Fri Aug 10, 2007
Pam Winterba…, Real Estate Pro in Danville, VA
Accepting a home from a lender in as-is condition, leaves you with no other option than to seek the advice from a professional (home inspector). Surely, there must have been some indication during the inspection that it currently had or had signs of prior water seepage. I think your best bet is to pursue your inspector.

Melissa Mancini, Realtor, CBR, GRI
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0 votes Thank Flag Link Fri Aug 10, 2007
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