I purchased a foreclosure on August 29th. After we had done a final walkthrough. Once we moved in we realized that there was hail damage to the roof from August 26th, (our new neighbors told us a hail storm came through) We had the roof checked out and sure enough the roof was damaged. (Not visible from the ground or at walkthrough) We contacted the Mortgage company's insurance, they came out and assessed it and aproved a payment for repair. Now the mortgage company is refusing to pay, they are keeping the money to cover what they lost in the short sale on the foreclosure. Is this even legal?
2006-12-27 03:54:23 · 7 answers · asked by Nostalgic 2 in Business & Finance ➔ Renting & Real Estate
I had an inspection prior to the hail storm. I did not know a hail storm had came through until I had moved in and found out from the neighbors. There was noone living in the house so the sellers were not aware of the storm either. During the walkthrough there was no way from the ground I could tell there was any damage to the roof. Even when up there recently I could not tell without the roofing inspector pointing out what the hail damage looks like.
2006-12-27 13:55:02 · update #1
They probably are not keeping it to cover what they lost. I really doubt this is legal. Most mortgage companies will hold the money for the job to be completed. Then they will pay. Also, if they held the insurance policy they can do what they want with the money. You bought "as-is".
2006-12-27 04:03:21 · answer #1 · answered by Anonymous · 0⤊ 1⤋
You need an attorney. Usually when you buy foreclosures there are documents that specifically say that there will be no repairs, and everything is As-Is.
The mortgage company was probably very happy you pointed out the damage so that they could get some extra cash.
Consult a lawyer-- a phone consult should be free.
2006-12-27 05:05:37 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It doesn't usually work that way - the mortgage company is NOT supposed to accept that check and use it for past mortgage payments. You'll have to contact your state banking commission (which regulates mortgage companies) to see if this is legal or not. And you ALSO need to get a mechanics' lein against the house, so that IF this house goes into foreclosure, YOU get paid before the mortgagee gets paid.
2016-03-29 08:15:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Consult an attorney.
Generally speaking, when purchasing a property either for your primary residence or for investment purposes, GET AN INSPECTION DONE.
Even if foreclosure property is listed "AS IS", many lenders will fix problems that they know will hinder the sale of the property to any potential buyer (such as roof damage).
In your current situation, contact an attorney.
2006-12-27 06:35:02 · answer #4 · answered by txrealestateagent 3 · 0⤊ 0⤋
If you purchased the home "as is" then you may be out. The money that the mortgage company recieved from the insurance company is designed for something and depending on their contract with the company it might not be for damage, but for loss of value.
I would consult an attorney due to the complications of this issue.
2006-12-27 03:58:07 · answer #5 · answered by Drew P 4 · 1⤊ 0⤋
Yeah, it might be.
1. The damage was prior to your purchase date. The owner of record on that date is entitled to the proceeds of any insurance; that would be the bank in this case.
2. You failed to notice it on the final walk-through and raise any objection at that time.
In fact, I'd say that you have no claim at all against anyone. The repairs on on you. Sorry.
2006-12-27 04:01:39 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋
I seriously doubt it. You need to see an atty.
2006-12-27 03:56:54 · answer #7 · answered by capnemo 5 · 1⤊ 1⤋