Expert: Dick Dennis - 8/15/2009

Question
Hi,
On the day of our final although, we walked in to find our home had been flooded and had 5 feet of mold growing up the walls! The agent went ahead and let the loan close and told us she would get us new carpet and new hardwood floors for the kitchen.  The next day under the light, the damage was far worse.  The cabinets were warped and molded and mold was in the closets and everywhere.  We had experts come in and basically the whole bottom floor has to be gutted and rebuilt.  The seller is Indymac and they refuse to cover it, our homeowners said it happened during escrow so they won't cover it.  The agent who is both the listing and selling agent on an FHA home said that she is trying to contact the "senior" asset manager by e-mail and no one is getting back to her.  Meanwhile we have been evicted from our rental, have nowhere to live, have to pay a mortgage on a home that is uninhabitable, have nowhere to go, and have a little baby!  We can't afford an attorney right now, we just want to curl up in a little ball.  We saved for 14 years for this home.....it was our dream.  Please help!!!

Answer
It is real estate agents like that that give a bad name to our profession, Sherrie. That agent had the opportunity to protect you and blew it. She knew darn well, that the transaction should not have closed with that kind of damage. She should have immediately taken you out and found you another house. That house is a total loss. Guaranteed.

Your only remedy is to find an attorney who will take your case on a contingency. I would imagine that almost any REAL ESTATE attorney would jump at that opportunity, Sherrie. That agent was so fearful of losing a commission that she was looking after herself first before the interests of yourself. Please, do not let that agent get away with it. Find yourself that real estate attorney. The agent's errors and omissions insurance will certainly take care of EVERYTHING. When that bank finds out what is happening, you can bet they will jump (at least they should) to refund everything you put into the property and most likely give you free rent in one of their other houses (at least the agent should be able to). The attorney will recommend you NOT pay that mortgage, too. Go do it right now! I wish you well.

Dick Dennis
dixiedee13@aol.com