During the final walkthrough, our home was flooded and had 5ft of mold growing up the drywall. The agent let

Asked by Spookycat99, Antioch, CA Sun Aug 16, 2009

the loan close. She offered us carpet and kitchen flooring. It turned out the entire bottom floor need to be gutted and now the bank (IndyMac) refuses to step in and pay for the loss or for our housing expenses. The home is completely uninhabitable due to the mold which is severe. We can't afford to pay for a mortgage and a rental home at the same time. We have been evicted from our current rental due to the owner selling and have basically nowhere to go with a little baby!! This is the most horrible, stressful situation that we have ever been in. Is the agent in any way responsible for letting the loan close when she could have stopped it? We are first time home buyers and were unaware that we could have stopped it!!!

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12
Lori Jeltema, Agent, Suffolk, VA
Sun Aug 23, 2009
Doesn't something seem a little off with this whole scene? Nobody signed documents but the agent let the loan close?
0 votes
Jesse Sierra, Agent, Pomona, CA
Mon Aug 17, 2009
Rod is right.
The bank (seller) is responsible for the damage, because it happened during the escrow and you didn't sign the closing docs.

These are all awesome answers that will help other buyers with the same situation in the future.
0 votes
Temporarily…, , Tempe, AZ
Mon Aug 17, 2009
"The agent let the loan close."

"No documents were signed"

How can the loan close if no closing documents were signed? And how can the agent let it close? You have to sign closing docs, not the agent.
0 votes
Bob Georgiou, Agent, Danville, CA
Mon Aug 17, 2009
Oh, trust me. You will be in good hands on this one. While agents can't directly comment as clearly as we would like to on this one trust me when I tell you, someone is going to write a big check to you for this mess.

It's unfortunate someone put you at risk for something that could have been easily prevented. This is exactly the sort of thing that gives agents a bad name.
Web Reference:  http://bob2sell.com
0 votes
Spookycat99, Home Buyer, Antioch, CA
Mon Aug 17, 2009
Thanks for all your answers, this was discovered during the final walkthrough of the property!! No documents were signed, we are in touch with an attorney. We did not want to go this route. We just wanted someone other than us to fix it since it happenend during escrow and the property was not maintained in the same condition that we put an offer on. No one wants to pay and our homeowners will not accept because it happened during escrow and IndyMac told us tough, prove it! So I guess we will be suing! We just wanted to be in our new home putting up curtains, not dealing with this mess. We thought the brokers or agents insurace should cover since it was not disclosed that's all.
0 votes
Bob Georgiou, Agent, Danville, CA
Mon Aug 17, 2009
In addtition to the lawyer you should contact your homeonwers insurer. This may be convered under their policy and may be able to help make ends meet so you can get back to living in your home.
Web Reference:  http://bob2sell.com
0 votes
Johnny Huang,…, Agent, Walnut Creek, CA
Sun Aug 16, 2009
I think base on your previous forum posts, you went FHA as well. The lender would have never funded with mold.
0 votes
Adrian Hunti…, Agent, SAN FRANCISCO, CA
Sun Aug 16, 2009
How did your home inspector, pest inspector, and appraiser miss this. For that matter how did your agent miss the mold, or the smell. You can't hide mold. Get a lawyer! Surely the agents had to have mentioned the mold in their AVID's.
0 votes
Abe Mills, Agent, Greenville, SC
Sun Aug 16, 2009
Indeed you need to be speaking to an attorney. Did you ever get a sellers disclosure report? If so, did it state that the home had been flooded before?

Good Luck!
0 votes
Johnny Huang,…, Agent, Walnut Creek, CA
Sun Aug 16, 2009
The theme is the same all around, get a lawyer...don't walk there, run!

As far as cash flow (between the transfer of title and renting) you're going to have to keep documentation of all your expenses based on this incident. That way it's losses that can be tracked and litigated.

Prepare everything you have, including conversation documentation on what happened for the attorney to review.

Sorry this is happening to you.
0 votes
Joe Nernberg, , Calabasas, CA
Sun Aug 16, 2009
Find a real estate attorney. This is not a legal Q & A forum.

The C.A.R. contract you signed states "7. CONDITIONS AFFECTING PROPERTY:
A. Unless otherwise agreed: (i) the Property is sold (a) in its PRESENT physical condition as of the date of Acceptance and (b) subject to Buyer’s Investigation rights; (ii) the Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance..."
0 votes
Marge Bennett, Agent, Fort Myers, FL
Sun Aug 16, 2009
think you need to see an attorney. Didn't you do a walk-thru before closing? What was your agent's relationship to you. Was she a single agent representing you as the buyers or was she the listing agent? You mnay also be abel to report her to the real estate commission there and or the board of realtors. but an attorney is the only way you will see any money
0 votes
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