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  1. #1
    Join Date
    Dec 2009
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    4

    Default Water Bill Nightmare on Bank Owned Property in Ohio

    My question involves a foreclosure in the State of: Ohio
    I bought a bank owned property off a Realtor that had a outstanding water bill, that was to be paid at closing by Fannie Mae. Several months later I found out that the bill was not paid, and it was in the thousands of dollars and the small town it is in is charging 10% compounding monthly. I tried several lawyers in the area to help out but not one of them wanted to make the real estate agents mad in the area. A few took my money then said there was nothing they could do unless I wanted to sue Fannie Mae. The last lawyer advised me to stop making payments on it after the town turn the water bill to the county to put on property tax...over $25,000 tax bill on a property worth 45,000. Bank did a title search but they claim they are not liable. Recieved summons today for forclosure. Is any of this behavior illegal? can the town do this? 25,000 for water I never had turned on??

  2. #2
    Join Date
    Mar 2008
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    1,995

    Default Re: Water Bill Nightmare on Bank Owned Property in Ohio

    Quote Quoting exrehaber
    View Post
    My question involves a foreclosure in the State of: Ohio
    I bought a bank owned property off a Realtor that had a outstanding water bill, that was to be paid at closing by Fannie Mae. Several months later I found out that the bill was not paid, and it was in the thousands of dollars and the small town it is in is charging 10% compounding monthly. I tried several lawyers in the area to help out but not one of them wanted to make the real estate agents mad in the area. A few took my money then said there was nothing they could do unless I wanted to sue Fannie Mae. The last lawyer advised me to stop making payments on it after the town turn the water bill to the county to put on property tax...over $25,000 tax bill on a property worth 45,000. Bank did a title search but they claim they are not liable. Recieved summons today for forclosure. Is any of this behavior illegal? can the town do this? 25,000 for water I never had turned on??
    If the property is sold "free and clear", or 'free of water bill", then the bill should've been taken care off, particularly by the title company, assuming that you had a title search done, or reviewed a copy of the bank's title search, and then obtained title insurance. If so, the title company would be on the hook.

    If it is not advertised as sold "free and clear", then the buyer assumes responsibility. As all RE transactions must be in writing, there should be a purchase and sales contract someone indicating what and "how" the property is being sold.

    The fact that an agent "heard' Fannie Mae" will cover the water bill is not enough, it has to say so in writing.

  3. #3
    Join Date
    Dec 2009
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    4

    Default Re: Water Bill Nightmare on Bank Owned Property in Ohio

    on the contract it states that the water bill will be paid by seller at closing. I hired an attorney that contacted the title insurance agency (one of the biggest in the country)
    and they said sorry water bills are not covered. Are there any lawyers in North west Ohio that are not in bed with real estate and title insurance company's??? There thought process seems to be...I might make a few thousand off of me but stand to make a lot more by not making them mad.

  4. #4
    Join Date
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    Default Re: Water Bill Nightmare on Bank Owned Property in Ohio

    There are lots of lawyers you can contact. Break out the phone book.

    Usually when I hear somebody complain that "all the lawyers in town are in bed with the other side" it's because they have a weak case that lawyers simply don't want to take - at least, not without charging an hourly fee. When I've investigated that type of claim, I've never found it to be true.

  5. #5
    Join Date
    Jan 2008
    Location
    Toledo, OH
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    16,307

    Default Re: Water Bill Nightmare on Bank Owned Property in Ohio

    Are there any lawyers in North west Ohio that are not in bed with real estate and title insurance company's???
    I live in NW OH and have not noticed people having difficulty finding attorneys to take on shady Realtors.

    As Mr. K notes, you need to hit the phone book. If you're in an area with few attorneys, try contacting your local Bar Association for a referral. It seems to me that your issue isn't that "all" the lawyers in your locale suck, but rather that you just haven't talked to enough of them to find one to suit you.

  6. #6
    Join Date
    Dec 2009
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    4

    Default Re: Water Bill Nightmare on Bank Owned Property in Ohio

    has anyone ever sued Fannie Mae and won? 2nd ? if the bank forecloses what happens to the back property taxes?

  7. #7
    Join Date
    Mar 2008
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    Default Re: Water Bill Nightmare on Bank Owned Property in Ohio

    Quote Quoting exrehaber
    View Post
    has anyone ever sued Fannie Mae and won? 2nd ? if the bank forecloses what happens to the back property taxes?
    If the bank forecloses, back property taxes stay with the property, and will be paid by the new owner.

    My neighbor and I bought two similar new constructed attached homes, built by the same developer, both homes were in foreclosure, by different banks. My house was sold "free and clear", with the bank paying the back taxes.

    My neighbor did not know back taxes did not come with the property, did not ask, found out later that it did, about $25K worth, and wound up paying for it. He still did OK, considering he got it at a good price (30% off) and values almost quadrupled in the time frame that we both owned the place.

    The water bill should have been paid at the closing, and should have been taken out of the proceeds, with a check issued, or escrowed from the proceeds if not paid right then and there. If you had an attorney representing you at the closing, it is something that should have been taken care of by him.

  8. #8
    Join Date
    Mar 2009
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    327

    Default Re: Water Bill Nightmare on Bank Owned Property in Ohio

    Did you have title insurance? You may want to contact them since there was a cloud over the title that was not cleared at closing.

  9. #9
    Join Date
    Oct 2007
    Location
    Ohio
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    2,592

    Default Re: Water Bill Nightmare on Bank Owned Property in Ohio

    I think that the Realtor (c) may have some serious exposure in this case.

    They are the sole entity responsible for bringing the buyer and seller together in a transaction they initiate. They are responsible for all of the decisions they make and all of the participants they engage at a closing. They are paid to take care of all of that.

    It is not necessary to hire an attorney and sue them for damages when they are negligent. It is only necessary to file a complaint with their state licensing board. Try that first and see what happens.

  10. #10
    Join Date
    Feb 2010
    Posts
    1

    Default Re: Water Bill Nightmare on Bank Owned Property in Ohio

    When the new 2010 Ohio tax bills arrived I found myself in a similar situation on a foreclosure I bought from Fannie Mae in 07. I'm interested in other ideas or updates on progress if any on Water Bill Nightmare.

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