My husband and I are under contract on a bank owned home or (REO). We are having to deal with the bank's

Asked by Looking4ahome, Denver, CO Tue Apr 14, 2009

real estate agent. Initially we wanted to get FHA financing with a type of FHA title 1 type loan because the home needed a lot of work. The bank refused the offer if we had FHA financing (even though the property could be sold sub-par with the caveat we couldn't move in until the repairs were made). We found conventional financing instead. Now we had the appraisal done and there is mold in a bedroom on some of the drywall from the roof leaking. With the house as is we can not get financing. We offered the real estate company to hire a licensed contractor to take out the moldy drywall and replace it before our closing but the real estate company who listed the home has refused. Don't I have any rights in this situation?? I don't understand why they are making it so hard to purchase this home!! Anyone have suggestions??

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jcs2000, , South Dakota
Sat Apr 18, 2009
The larger question is why you would want to sink money or purchase a property with mold and a leaky roof. There are plenty of bargains in this market that have neither issue. I would be very careful as most REO are sold as and you could be stuck with a lemon, especially if other problems become apparent after the sale completes.
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Shonda Campa…, Agent, Jacksonville, FL
Tue Apr 14, 2009
You need to read your contract. You should have a financing and inspection contingengy that would allow you to get out of this contract if you are within your time frame.
If you are still interested in purchasing this home, you should try to get the bank to pay for the mold repairs. If they refuse, In all honesty...Walk Away if you are within the time frames. In a contract , time is of the essence. Talk to your agent.
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AJ Agarwal, Agent, Jacksonville, FL
Tue Apr 14, 2009
Hey guys, sorry to hear that you're having so much of problems. It's unfortunate that you didn't go into this with having your own real estate representation in the form or either a realtor or a real estate attorney, as these specific situations is where one would have come very handy.

Anyways, since you need a solution of the problem you're already in, I'd look at the contract you signed. Does it have any contingencies for evidence of mold coming up during inspections? Or did you have that and now you're even past the deadline for that? I'd strongly suggest calling a real estate attorney at this point and taking their advice, IF you don't have any recourse left based on the contract with the bank. These attorneys can and will end up costing you but may be your only option.

Here is one firm that my real estate brokerage as a whole deals with. I don't know them personally and hence engage them at your own will if you wish.

Ford Bowlus Duss Kenney Safer and Hampton, PA.

They are in Mandarin area and this is their website:

Hope this helped. Good luck.
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MaryBeth Sch…, Agent, Jacksonville, FL
Tue Apr 14, 2009
Dear Looking!

Are you working with a Realtor? Your Realtor should be able to help you with this. It all sounds very frustrating!

Best wishes,
Mary Beth Schillig
Prudential Network Realty
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