Bummer - Just had a deal crash . . .

This was a deal in which I have a 1st time home Buyer buying a wonderful little house that is REO (Foreclosure). When we made our offer, the bank was rigid on price but agreed to all other terms and timelines, so we proceeded in the usual way.

We Did a home inspection within the alloted time frame and found 2 significant issues . . . Air conditioning was not working . . . and crawl space had water and significant fungus/mold . . .

We prepared an inspection release requiring these repairs and delivered it to the listing agent only 5 days after the Binding agreement date (The contract allowed us 10 days).

Per the contract, the seller would have 3 days to respond to our release.

that was 6 weeks ago, and we STILL have not received a response in writing.

Here's what happened during that 6 weeks.

Asset Manager verbally told the listing agent that they would only consider repairing items that were required by an appraiser or underwriter (NOTHING about this in the Purchase agreement).

We had the lender go ahead and order the appraisal and communicated the deficiencies . . . 2 weeks later, we had those requirements . . . forwarded them to the Listing agent.

The REO bank then said they required 2 bids for the repairs before they would agree to anything . . . after much scrambling, we had the bids required within a week.

2 more weeks pass with no news . . .

Then the call came . . . The asset Manager now says the bank will make NO REPAIRS and will not pay ANY money towards repairs.

so . . . Is this the way the banks feel they can play ball?

Are they immune from the terms of contracts they sign?

This bank dragged a 1st time Buyer, 2 REALTORS, a Lender, 2 title Companies, 4 contractors, an inspector, an appraiser and Lord knows how many other people through a 6 week ordeal that never should have happened . . . Much time wasted . . . Much money wasted . . . and a 1st time Buyer with a VERY bitter taste in her mouth about this process of buying a home.

This is nothing but bad business, and this is just one of MANY similar stories.

Now that I have vented (Just be glad I didn't write the stronger words I have for this experience) . . . I'm wondering.

Are banks really exempt from contractual agreements?

They seem to have full authority to change commission structures to fit their desires . . . and they appear to have absolutley ZERO regard for the written agreement.

Are they bullet proof?

What do they have to lose?

This kind of behavior is not the stuff that's going to positively affect the economy. The government and Taxpayers have spent gobs of money bailing these banks out stimulus . . . and the Tax credit initiative encouraged lots of Buyers to perform earlier than "natural" (Borrowed a bunch of Buyers from the future - which is NOW).

so . . . Now we have fewer Buyers in the game . . . and the banks still have a bajillion distressed loans in their pipelines . . . Why would they risk pissing off the few Buyers in the market with these kinds of shenanigans?

Anyone else have a good story?

I'm just sayin'

Best,

b

PS - I have another sad story with the same 1st time Buyer - Made an offer @ $112,000 on a property listed @ $115,000 . . . The offer was refused and the Buyer moved on . . . that property is now listed at $89,000 and has since incurred serious storm damage to the roof and eaves . . . There's another irresponsible bank who has lost at least $40,000 . . . and still bleeding