Is it worth a lawsuit? tax credit debacle

**callou2131** · 07-28-2010, 11:48 AM

I am just wondering if Mellon Bank would be responsible. I had a contract on a foreclosure, that I had in before the deadline. The bank signed a contract to make the place VA compliant. VA comes in and tells them what repairs must be done. They dont get them done before the 30th of june. The contractors go in on the 1st of july. The contractors made the house unliveable. There was no electricity in 3 rooms, plus they flooded the kitchen floor, destroying the tile, and the cabinets. The bank said too bad. The VA inspector signed off on the repairs, but never even went back to the house, as they fixed nothing on the list. So we terminated the contract. I am now out that 8000 tax credit, because the new house I bought was not signed by the 30th of april. Would it be even worth calling a lawyer or am I just screwed?

**Greg** · 07-29-2010, 08:11 AM

Do you think you can find a lawyer who will handle the case for less than $8,000? The time frame you talked about sounds like you waited until the last minute to make your purchase. The bank sounded very accommodating with the repairs they were willing to make for you.

Why didn't you start the process 6 months sooner?

**callou2131** · 07-29-2010, 06:53 PM

Well we started with them in February. It took two to three weeks to make a counter offer each time. After they agreed on our offer on april 12th, they came out and said WAIT! we have Another offer, it may be higher or lower but you should raise yours. We raised it $7500 bucks. Apparently that was a load of BS as well, because the house is sitting on the market for 10,500 less than our first accepted offer, and 18,000 less than our updated offer. As to the repairs, that was in the contract. That the house be VA compliant, which it was not. There was a broken window, electrical problems, no window trim, a broken french door, and two deck rails had been taken down. They fixed nothing. The only bill they could provide was to an unliscensed handyman that "fixed" the electrical by exposing bare wires all over the attic, and next to the gas line. As to the lawyer fees, you are right I am just screwed. Thats OK I settled on a great house this morning. Still irritated at the loss of 8 grand though.