Help on Bank Owned Property

[Sandeep Singh]

Hi All,

I have signed a purchase and sales agreement for Bank Owned property and my rate with bank is locked and got expired on 10/16/2015.

For extending the locking rate mortgage company is asking $140 for week and I am ready to close the deal but bank is saying "Trustee of Condo Association" is not giving them 6D certificate because trustee (2 unit condo, I am buying 1 unit and the other unit owner is trustee) is not ready to sign Master Insurance policy because he is claiming that he paid master insurance for last 1 year and wants to get paid before signing any document.

Generally master insurance in that area costs around $1000.00 but Trustee (other unit owner)  is saying that his master insurance policy costs him $4400.00 because previous owner claimed too many incidents on property.

Trustee is also not willing to share insurance policy and invoice with bank (he is sending all invoices for master insurance by handmade and not ready to share actual invoices from insurance company) and bank wants to pay him on actual invoice and not invoice made by him. Looks like he is trying to make insurance document and wants to collect more money then he paid.

I also requested bank and condo association to give me loss run report on condo so that I can shop around for better master insurance and since bank name is in trustee list , insurance company doesn't want to share loss run report with bank and they have send all report to trustee (other unit owner).  Other unit owner is not willing to share that report with me or bank.

Due to above problem we have extended closing date 2 times (almost 3 weeks) already and now I have to pay rate lock fees.

Interestingly other unit owner listed his property also for sale just 3 days back. I am not sure what he is trying to do.

The bank attorney is trying very hard (thats what they are telling me) to deal with this guy and he is not co-operating with Bank and there attorney and in the whole process I am stuck.

It is really bizarre situation and have never come across this before. I am not sure what he is trying to do.

My realtor and some people are telling me either he is trying to

1) Block my deal

2) He is trying to make money from me and bank on master insurance by giving wrong handmade invoice (may be $2000.00 more).

Any advise for me as a buyer

Thanks in advance