All Forum Posts by: Katharine Chartrand

The water bill is $1400, just above what people seem to think is reasonable to fight about. I appreciate that I need to put this in perspective.

The house itself is worth about $40K, so we're talking about a water bill that is 3.5% the value of the home. 

There are two issues ... first I was clear that I would not pay the water bill from the beginning.  At closing, it was clear that the communication between auction.com and the bank was poor and my offer hadn't been communicated correctly. I stuck to my offer. They cancelled the contract with no discussion. 

I supposed I could pay the $1400.  But I don't know why I should have to make that decision on the spot given that it is a significant change in terms.

My sense is that there has been a pattern of this issue coming up at their closings. I got caught up in some larger internal debate.  They've probably had a rash of people challenging this.  The contract and the law are ambiguous.  It's probably not worth it for them to set a precedent and assume the water bill or the whole house of cards falls down.

I have someone from auction.com trying to reach me today.  Perhaps to do some mopping up.  This may get resolved. 

But if i need to serve them, I'd like to know how.

Thank you @Wayne Brooks for answering my question.

>KNC<

auction.com is the agent. They've been professional in the past about returning deposits but the water is clearly a sore point. I also feel there is some other issue between them and the bank. They moved so quickly to attack me and cancel the contract and pull my deposit over this. Had a strange feeling... It was an over reaction that really is not supported by the contract.

I've read the documents, so has my title insurance company and my lawyer.  They both think BofA is mis-reading the clause.  But it is a subtle legal point.  

Fortunately, the bank violated the contract in two other unrelated ways.  They love to put really aggressive closing dates that they subsequently fail to meet, rendering the contract invalid.

In any case, its not too hard to make the point that they owe me my deposit. 

But, serving them?  How the hell do you do that?

@Curt Davis 

In NM, that works with power, but the water company don't care.  They won't turn on the water until you pay the bill associated with the house in full. 

I had one property with a $7K water bill I had to clear.

Anyone doing flipping in NM, beware of the water bill.

@Curt Davis 

Bank of America cancelled the purchase agreement because I refused to pay the water bill at closing.  I had been very clear with the agent that i would not agree to pay the water bill. But they hadn't told Bank of America. Bank of America adamantly protects their right to stick the buyer with the water bill the foreclosed upon owner ran up.

This caused quite a bruhaha at the closing. BofA felt blindsided, the agent didn't want to look bad with BofA.  But I am not going to pay the water bill and BofA won't close if I don't. So that leaves the deposit in question.  BofA says they won't return it because I have violated the purchase agreement.  It's legally a week position, so weak it may be a negotiating posture.  Or it may be a bunch of people who don't want to look stupid.

In the meantime, I am preparing to go to small claims. 

Any experience with this?

>KNC<

When you buy an "owner occupied" property from Bank of America, the purchase agreement has a special addendum to cover circumstances that arise when the foreclosed-upon owner remains in the home after the foreclosure. 

Specifically, these agreements make the buyer responsible for the utility bills incurred while the house is illegally occupied.

In my experience, most of these "owner occupied" houses aren't actually occupied.  The bank uses this clause to make the buyer responsible for utility bills that pre-dated the foreclosure. 

This week I got hit, again, by bank america for a water bill that pre-dated the foreclosure. It was the third time and I got fed up and walked away from the deal.  I feel like they are mis-using the clause to make me take care of expenses they were required to pay when they foreclosed.

Am I dreaming?

I had a purchase contract with the Bank of America on a house.  They "cancelled" the purchase contract and told me I am not getting my deposit back.  They are not in a strong position legally, but they will likely be stupid about this. So I need to prepare to serve them.  I've heard that can be the hardest part. 

Has anyone out there successfully served Bank of America?

@Johnna Lodge 

that said, it's amazing to me how obvious most scams are.  if you are paying attention, you immediately know you've got a scam.

@Johnna Lodge 

thanks johnna

if you are not paying attention to what is going on and listening to your instincts, you will get burned. it's part of what makes this interesting to me.

I have considered hard money lenders but only referrals from people I know.  I wouldn't get into a lending relationship outside my network if it's not a bank. Even if they don't ask if I am married.