Question About Foreclosure Repairs

**Homebuyer2008** · 07-23-2008, 11:43 PM

This is a question for anyone who has experience dealing with banks on foreclosure (REO) properties.

Problem: first of all, the property is AS-IS BUT the bank agreed to fix all termite related issues, which for some reason (that I don't fully understand) includes the leak in the shower. One plumber quoted the problem at a $6,000 fix, and in response to this bid, the bank found a contractor to go out and make a $2,000 bid. I ask you: which bid do you think the bank will accept?

The issue is this: the low bid is a temporary fix that does nothing for us as the buyers (it's literally money down the drain so to speak). Even the low ball plumber admitted to me that the leak may stop, BUT the shower will probably fall through the foundation in about three years. He says, as far as he is concerned, the bank hired him to fix the leak and that is that. He also guarantees his work comes with no warranty.

Is there anything we can do at this point? What law is holding the bank to fix the leak at all? AND is there anything in this law that can protect me from crooked contractors?

We think the best solution may be to ask for $2,000 cash and eat the rest, BUT good luck getting the bank to do ANYTHING that can help us, including writing us a check instead of paying for work that is worthless to us. It seems like the bank is determined to make this as difficult as possible (we are already two weeks past the closing date of escrow and in danger of losing our locked interest rate).

Thank You for any help you can offer.

**Mike Taylor** · 07-24-2008, 04:29 AM

You could get another bid, or ask the bank to split the difference with you. Whatever price you determine, I will bet the bank would be more than willing to do this as cash versus actually getting the work done. It would most likely have to come in the form of seller paid closing costs, but the net affect is still the same to you.

**Greg** · 07-24-2008, 05:06 AM

The termites are there because they have a source of water. Fix the leak and the termites lose their water source. This is why the bank is willing to fix the leak.

The bank might be more willing to give you a credit than to write you a check.