REO under contract, now vandalized. What now?

Question

I placed a bank-owned property under contract last week. I went by to take some additional photos and get some repair measurements and found that the back door was kicked in and house was ransacked.

I called the listing agent but she didn't seem to interested in doing anything about it.

What does the law say about this? Who is responsible for repairs?

What steps should I take next?

My closing is set for Feb. 25

Thanks in advance for any insight into this problem.

Rand Miller · Answer

Remember the only way to prove that you demand something is not verbally, but in writing [dated]. You need your agent to submit in writing your demand.

The other posters offer very good advice.

Account Closed · Answer

You have received good advice so far.

Technically the deal you agreed to is not possible for the seller to honor unless they provide the property in the condition it was in when you agreed the deal. In a sense the deal is off if the seller can not bring things back to the state they were in. As noted by others do check the contact that was signed.

I have seen lenders come up with $1,400 when some plumbing and a furnace was stripped out 1 day before close. Take cash or cash reserves so you can control the repairs.

Christian Malesic · Answer

Make sure if you negotiate to have the repairs done before closing that you pick the contractor and the work is done to your satisfaction.  It is much better to negotiate for monetary compensastion, ie - a lower contract price.

As mentioned by others - be reasonable.  You should not make a profit here, but fees for project managment of contractors is realistic.

Jim Gordon · Answer

Call your agent and have them get the ball rolling. Your agent represents you and it is their job to either get you out of the contract ot get changes made to keep the transaction equitable to you. That does not mean 20,000 more off a broken door and some paint but some compensation should be made. Talk to your agent I am sure that they have handeled things like this in the past.

Paul Cordero · Answer

Usually any damages to the property after the contract is written is responsibility of the seller.  Read your contract to find out!  Depending on how much damage, there could need to be a police report and a claim filed with the placed insurance that the seller has (bank), or the seller can negotiate some kind of consessions to the buyer to avoid all of that.