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?
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 was unable pointed out to me
2006-12-27 19:31:43 · 4 answers · asked by Nostalgic 2 in Politics & Government ➔ Law & Ethics
You expected the house to be in the same condition as when the inspection was completed - you expected the inside to be in the same condition just as you expected the outside to be in the same condition - possibly a "good faith" agreement - they were not inclusive of all information regarding the house and I would get an attorney if I were you and let the company know that you are going to get an attorney. (You may be able to get out of the contract/signing and make the company give you back everything you've put into the house- plus cancel the mortgage)
2006-12-27 19:44:24 · answer #1 · answered by kim 4 · 0⤊ 2⤋
Both of you seem to have a good case. This could fall under the "act of god" area. If the damage is small then it is not worthwhile to pursue a few hundred dollars. You need to pay legal representation, court costs and other legal expenses. You are better off putting the money into fixing the roof. Cost it out either way to see where to go. In this case, let the total expense decide for you.
Both your lawyers might ask you to settle out of court. Remember that you each still have to pay the lawyers no matter whether it goes to court or not.
2006-12-28 03:46:54 · answer #2 · answered by QuiteNewHere 7 · 1⤊ 0⤋
The answer hasn't changed since the last time you asked this question. Yes, it's their money and they are free to do with it as they please. Any lawyer will tell you the same thing.
The damage occured prior to your purchasing it. The insurance proceeds went to the owner of record at the time of the loss -- the bank. They are free to do with it as they please.
You did not discover the problem at the walk-through prior to closing and raise an objection.
Sorry, but you don't have any options here, other than to get the roof repaired at your own expense. And learn a lesson from this for the future.
2006-12-28 03:43:10 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 1⤋
It is probably legal for them to do this since this is for an action that happened before the sale. consult with a real estate attorney to be absolutely certain on this.
2006-12-28 03:41:54 · answer #4 · answered by Anonymous · 1⤊ 1⤋