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Who Is Liable |
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Dear Edith, A family member just purchased a home through a mortgage broker. He ended up with two mortgages, the second is a smaller one. There is no way he could afford the payments on his income. The Realtor I think was only looking for a sale. The key issue here is the pre sale inspection set up by the Realtor. The above ground pool is not fenced in, run with an extension cord, the door to the deck is rotting away, the deck railings you could throw a moose through. And it needs a new roof!
They can not afford these repairs. I told them the inspector should have noted these things. Is it time for a lawyer or are they stuck with it as is? Oh and the broker neglected to set up the escrow account, now they are paying catch up with that. I know there are honest Realtors out there. How do the bad ones get away with this stuff? --Wondering |
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It's mortgage lenders, not brokers, who make the loans, and they don't usually do it unless they're pretty sure the borrower is capable of meeting the payments. The piggyback (two-mortgage) setup you describe may have been chosen by your relative if he had a low down payment and wanted to avoid carrying private mortgage insurance. Setting up an escrow account is also done by the lender, and is not the business of the real estate broker or the mortgage broker. As for the problems you describe, it sounds as if they were right out in sight, not hidden defects, so they could have been seen by the buyers and probably were. Your relatives can talk with their own attorney if they feel they've been cheated. It doesn't sound to me as if there's too much out of the way here, though I don’t like the sound of that extension cord myself. |
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Edith
Originally published on April 6, 2006 |
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