Beware of the Bank’s Non-Disclosures!!!!

Florida Foreclosures 407-873-2747

Hi folks. Lately I have been selling quite a few REOs (banked owned) property. As you know if you deal in these properties the sellers (banks) always offer them for sell in “As Is” condition. No biggie since most of my Buyers are experienced Investors.

“As Is” in Florida means As Is with right to inspect. This means the Buyer normally has 7-10 days to have the property inspected after a contract has been accepted and signed by all parties. If during this inspection the Buyer finds structural or mechanical issues that they weren’t made aware of during negotiations the Buyer can cancel the contract and get their deposit back.

In Florida, a Seller is obligated by law to disclose to a potential Buyer any material defects that the Buyer cannot readily see that affect the value of the property. Banks, no matter what they think, are NOT exempt from this disclosure.

Recently I have been negotiating for a Buyer to purchase a REO property. The property is only 2 years old and has never been lived in. After several counters the Bank has finally accepted our price BUT they want to close in 2 days (impossible) and they will not let the Buyer inspect the property. Can you say RED FLAG!!!!

Anyway, here is the Email I sent to the listing agent:

Hi XXXXX,   I have just left a message  for the buyer. I’m pretty certain he can close the first week in March but I have asked him for a definitive date. The corporate name on the contract is correct.

We will not purchase the property without an inspection period. So the lender just needs to get over that ridiculous request. That property has been sitting vacant for too long and it is very possible that central heat and air are frozen. Also the lighting in the kitchen is all coming out of the ceiling. The buyer is willing to accept “as is” assuming there are no major structural/mechanical issues uncovered during the inspection period.

The seller’s unwillingness to let us have the property inspected tells me they are aware of an issue and are hiding it. They either want to sell or they don’t. No inspection is a deal killer for almost all buyers. Anyway as soon as I hear back from my buyer I will let you know his response. Thanks for your efforts.

Within minutes I received this:

FYI  This homes has a skylight that leaked (flooded from the skylight in the kitchen. It effected all the walls, floors inside area in kitchen, laundry room, living and dinning room area.  The mold has accumulated & there was a terrible blackening of the molding & area around the skylight & fixtures and it began to smell.  I had Solivita do the entire kitchen, ceiling,walls, floors etc to fix it & do the right job. The electrical outlets, wires etc were all replaced & fixed.

As of right now that home has been put back correctly & no charge to the bank or to the owner.  I worked very hard to get this home redone.  You know how builders can be. Since the home was never occupied nobody was aware of its condition.

Folks, that email was sent to the current agent from the previous agent!!!

The lesson here is to NEVER accept a contract where the Seller will not allow an inspection. It is obvious to me that this Seller was fully aware of these issues. As most banks do, they feel they are exempt from laws that were put in place to protect the public.

It would have been very easy for me to persuade the Buyer to go through with this transaction. It’s a brand new house……what could possibly be wrong? Well how about extensive BLACK MOLD!!!

Watch yourself out there…..the Banks may very well be jeopardizing your lively hood. What say you?

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