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Two weeks ago, we closed on a home we paid $280k for. We paid to have the home inspected by an inspector recommended by the realtor (we were out of town buyers) and the report came back that it was a "good, solid house". On the seller's property condition statement, the seller checked "No" for questions asking if there were water problems, flooding, mold, mildew, structural problems, etc. Keep in mind he had the option of checking "I don't know" but checked "No."
One hour after closing, we went to the house to move in and smelled a horrible smell in the basement. Upon further inspection, we saw water creeping in on the carpet by 3 basement walls. We also saw that the paint had bubbled on the wall above the leakage. We IMMEDIATELY called both the realtor and inspector to inform them of the problems. They both came out that day and looked at the problem. The realtor brought out the property condition statement and we discussed how the seller didn't disclose the damage. Later that day, the seller came out to the house and looked at the damage. He admitted that he would mad too, if it was him. He also commented "everyone knew about the water problems in this house". We showed him the property statement where he checked "No", and he said "that's because there aren't water problems". Bizarre....
We removed sheetrock to see the extent of the damage, and there is mold in the walls, including studding. We looked for the source of the dripping we saw, and found a basement window that had been covered over, obviously not correctly.
Since then, we have learned from 2 neighbors that the seller did know about the water problems, had used a backhoe himself to dig out underneath the back deck and left it open for 8 months last year. He even got a professionl bid to fix the problem, but thought it was too expensive so he did the work himself. He is NOT a licensed contractor.
Question...can we sue the seller for Breach of Contract because he didn't disclose the problems with the property? If we do, what do we do in the meantime waiting for the court case, quit paying our mortgage? Go rent another place? We've heard it will be difficult for us to sue the inspector, and if we do, we can only sue to try and repair the damage, not give the house back.
We have been told by a contractor who came in and looked at the damage that even if we fix the problem, it will still be difficult for us to resell the home because a "qualified" home inspector will disclose all of the problems. We also have to disclose the problems on any property condition statement we sign.
Advice please.....we are devestated and need to know if this is worth our money getting a qualified attorney to fight for us.
Whatever you do, do not stop paying your mortgage unless you don't care about owning a home in the next 3 years.
If you purchased the home VA or FHA, you signed in at least 3 places that HUD/VA does not warrant the condition on the home. The note you signed is your personal guaranty to pay back money you borrowed. The note is still due even if the home is rendered uninhabitable. Should you be late on the mortgage, you may have some sympathetic underwriters, but no one will let you borrow on another home with recent prior late mortgage payments. The condition of the property has nothing to do with the fact you owe money.
Years ago, a Realtor I worked with got a great deal on a Cadillac. About 3 weeks after she bought it, the FBI came to her office and provided evidence the vehicle was stolen and had it towed away. She paid on that loan for 4 years.
Go get legal advice, but I'm almost certain your attorney will tell you to keep paying the mortgage. Chances are, the sellers won't be contributing funds, either. If they have a clue, they've obtained legal avices as well and will be told any advancement of funds will be considered an admission of guilt. The home inspector most likely has verbiage in his report he's not responsible for what is behind the walls or concealed.
Fortunately, your story isn't something that's overly common. Doesn't mean it doesn't stink, though.
As the others have said, contact a real estate attorney. Document with your realtor what the seller told you. Take pictures. If the seller has not moved out of state, then you probably have a lawsuit. It is interesting that your realtor saw no signs of this problem or even that the seller's agent did not see it. Absolutely keep paying the mortgage. Good luck.
The cost of an attorney is cheaper than the cost for repairs. Please keep in touch on this issue, I'm sure I'm not the only realtor that could learn from your story. I'm sorry to hear you are going through this.
Can you update us where your at with this. I have the exact same thing happening. The seller of my house is a fraud but also a Real Estate attorney. It's unreal. I'm going to spend over $100k getting this house live able. But I'm not sure I will ever collect since a lien won't do much to get him to pay.
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