Foreclosures can lead to a great deal or a great deal of problems. Unfortunately, the latter case is where one California couple found themselves.
As concerned buyers, the couple relayed to their real estate practitioner representing them that they were not interested in a short sale or foreclosure home because of possible defects. After being reassured they were in the clear, the couple closed on the home. Little did they know, the house may have looked freshly painted and carpeted, but it had just recently been a disaster site.
When the original homeowner was facing foreclosure by a second lien holder on his mortgage, he decided to deal with his problem in a rather unhealthy way. He took his hammer to the walls and fiberglass showers, flooded the entire house, and demolished the pipes and plumbing.
The individual holding the second lien cowardly covered the entire debacle by hiring a handyman to patch holes, paint, and install all new carpeting.
Soon after closing, mold was found among countless other issues. The couple filed a suit against the licensees and the seller. After much stress to say the least, the buyers recovered funds and had licensed contractors repair the defects.
Unfortunately, stories like this are replayed all too often. Short sales and foreclosures are often flipped so cleverly in a way that buyers have no idea what they have gotten into.
What can buyers do to avoid this havoc? Educate yourself on the disclosure laws of your state. Anyone selling a home must fill out a disclosure form with accuracy by law. Any remodeling on the property must be revealed. Disclosure also includes any material facts that a reasonable buyer would want to know before closing.
Also, ask the right questions before purchasing:
- What condition was the property in when it was foreclosed?
- Can the contractor verify the amount of money spent by the seller with receipts?
- What all was done to fix defects?
- Was anything left uncorrected?
- What work was completed by a handyman?
- What work was done with a permit and what was done without one?
It is important that buyers know every detail before making an investment in a home. Don’t be afraid to ask question and take time to uncover all of the facts.
For assistance with all of your real estate needs, contact The Wilson Realty Group in Raleigh by phone: (919) 378-1974 or by email: Info@WilsonRealtyGroupNC.com