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Have any of you ever dealt where someone got suicide and then property got foreclosed? Someone I know bought the property thru another realtor and found out after the closing that someone shot himself on the property. The closing was done and they tried to do the cleanup and they found out from neighbours about this suicide. Then they checked the house thouroghly and found the blood stains under the carpet and holes in the ceiling.
They wrote the letter to the REO bank and they said they didn't know anything about this incidence. Even though REO's are AS-IS, do they still need to disclose if there's a death on the property. Can anything be done because the buyer is not moving in after knowing all of this and rent that property?
I have a client who bought REO house thru another agent in 2009 but found out from neighbors later on that previous owner shot himself in that house. My client's wife did not want to move into that house and they rent it. Later they filed a law suit against the bank that why didn't they tell there was suicide in the house.
Their attorney asked them that there will be a special appraisal going to be done and the charges will be $3500 which is ridiculous. I suggested them they can find appraiser and probably pay the max $500.
Any ideas how much will be the difference/adjustment in appraisal if the appraiser knows there is a suicide in the house.
Any feedback will be appreciated.
Any appraiser have any comments on this?
The Banks are going to get challenged on this type of disclosure. There is going to be a friendly judge to the situation of the buyers and "HAMMER" a Bank for this. I would love to have the details on this. What State did it happen in? Was the property listed as a short sale? So on an so forth. I can think of a long list of questions that should / could have been asked. Did the Bank foreclose on a dead man? Did anyone along the path tell the Bank... ? I bet you could dig someone up that did. Did the Bank pay for any clean up? And then deny they knew? This to me would point to fraud, knowing there is a detriment and hiding it is not as I see it something the bank is exempt from disclosing and point to intent.
If this happened in California, I would contact CAR Legal and discuss the disclosure requirement, this could break some new legal ground. CAR LEGAL is free advise to members, don't trust the blogs. You may want to also route this to the CAR Distressed Property Task Force just to keep them informed of the case and situation.
It was Fannie Mae property, not short sale. The neighbors told the listing agent but I don't know if the bank knew or not, if the listing agent mentioned in her bpo or not.
Yes, it is in CA. The master bedroom ceiling had holes from gun shot and the carpet had blood stains underneath which buyer found out after the closing when they asked the police report and read all the details.
Just want to clarify I was not their agent.
I don't think bank did the cleanup. I guess buyer replaced the carpet and paint the house. Buyer rented this property already and has no intention to live in it.