Ask George & Chuck: Questions From Consumers - December 28, 2004
by George Stephens & Chuck Jacobus
Dear Ask George: I am a California REALTOR® and recently represented a buyer who purchased a home for over the asking price. I advised my buyer to do all inspections of areas of concerns with respect to the house. We also had a physical inspection that went pretty well. I performed my agent inspection and found minor issues and reported the findings to my client. After the close of escrow I received a call from my client describing a hole in a closet that was covered up by clothing and various items. The closet is located in a room adjacent to the bathroom. I advised my client to draft a letter of concern. A few days later it rained and my client called me and said that she could smell mold present in the hole she found in the closet. She could not sleep in the room and she spoke of the smell of mold filling the air throughout the entire house. She then told me that she was going to have a mold inspector investigate. The investigator found mold in the room where the hole was in the closet. My client has written the letter to the sellers asking them to settle this matter outside of a mediation or litigation process. However both parties agreed to a mediation hearing per the Purchase Agreement. They have not gone this far and the buyer clearly does not want to. What recourse does my client have and how should she go about resolving this issue with the sellers? - Concerned REALTOR Dear Concerned REALTOR: I believe you are trying to handle this matter with your client's best interests in mind. However, arranging for a mediation to take place is the best way to handle this situation. With mediation, your client and the seller get to discuss their viable alternatives, but nothing is required unless the results of the mediation are set in writing and signed by all parties. Thus, if they cannot agree, they can always litigate. Truth be known, if you sought litigation (probably whether in small claims court or district court) the judge is going to ask if the parties have tried mediation as an Alternative Dispute Resolution process. Your client has told you that she wishes to make a good faith effort to resolve her issue with the sellers. Involving a professional mediator is the best way to achieve your client's wishes outside of the court room. Dear Ask George: I live in Virginia. How do I apply for a single-family home loan with poor credit? – Determined Borrower Dear Determined Borrower: Well, there is "poor credit" and there is "bad credit" and then there is "really bad credit." Unfortunately, those labels don't mean anything. I suggest you start with a factual assessment of your credit report, and then interview at least three mortgage companies that you locate through the Better Business Bureau. The best way to obtain a factual assessment of your credit report is to access the three major credit bureaus, www.equifax.com, www.experian.com, and www.transunion.com. Any one of them can provide what is called a Tri-merge credit report. You can also enter a general search such as "how to get a home loan with poor credit" in one of your favorite search engines. However, I suggest if you do this that you only access sites that display the Better Business Bureau's "Online Reliability Program" seal, such as BadCreditAlliance.com, or VeracityCredit.com. But, even then be sure to access the Federal Trade Commission's site about self-help for credit repair. Once you are armed with knowledge about your credit report as a lender would see it, you are in a much better position to do something positive about improving it. That is where the three mortgage companies come in. Meet with a loan officer and ask him or her if the mortgage company can help you obtain a home loan. Ask questions. Obtain testimonials from satisfied customers. In other words, let the loan officer tell you what he or she can do for you, and then get it in writing. Dear Ask George: I made an offer on a home a couple of weeks ago. There have been no other offers in the one month it has been on the market. An identical home closed on the same day I made my offer. It sold for $15,000 more than my offer. The seller either under priced the home, or was not aware that it could have been listed higher. I am not sure if the listing agent has informed the seller of the discrepancy between sale prices. In any case, I had the home inspected last week and the inspection report advised that the furnace be replaced. There were other problems as well, but the 21-year-old furnace is leaking exhaust into the home and proposes the largest safety hazard. I have asked the seller to replace the furnace. The seller counter-offered, offering $1000 for the replacement of the furnace. I really want the seller to replace the whole thing, and am willing to cover the costs of replacing the other items. However, I feel that the seller may back out at this point, and re-list the home for a higher price. I would hate to lose the home because of the furnace. This has become a crazy game of poker and bluffing. Do you have any advice for me? – Hate Bluffing Dear Hate Bluffing: Accept the seller's offer to pay the $1,000 if you are willing to pay for the balance of the furnace and the other items called for by your inspector. The key here, for decision-making purposes, is: - Can you afford the additional cost?
- Do you want this particular home?
If it is a "fair price" with the seller paying the $1,000, I suggest you go for it. If you have a good buy, don't negotiate your way out of it. Dear Ask George: I live in Georgia and was given your website address to research foreclosed homes but I only keep getting you. Can you help me? – Confused Dear Confused: We answer real estate questions from consumers such as you. Since your question deals with "foreclosed homes" we'll tell you "how" to obtain a list pertinent to your area. We don't, however, provide the actual lists or get involved in the transaction in any way. Use your favorite search engine and enter "Foreclosed homes Georgia" (without the quotation marks) in the search bar. You should get the sites you want. | 
