Top 10 Real Estate Nightmares
Learn how you can avoid these hair-raising real estate horrors
By Shannon Petrie, FrontDoor.com |
Published: 9/24/2009

Some homeowners are horrified to discover that their house was once the scene of a crime.
Nightmare #1: Ghastly pastsBack in 2003, homebuyers Gregory Walker and Mary Lou Rosato fell in love with a 100-year-old Victorian home for sale in Los Angeles. The bank-owned property had some rather unusual features -- including a toilet in the sunroom -- but it was a bargain at $240,000, more than $100,000 less than similar houses nearby. But their dream come true quickly became a nightmare when they found out that the home's previous residents were gang members who used the sunroom toilet to flush crack rocks in case the police showed up. They had already purchased the home, but they wrote an angry letter to the bank and got out of the deal.
TIP: If you unknowingly buy a property that has a shady past (also known as a "stigmatized property") and you want out, you may have legal recourse. However, disclosure rules are vague. For instance, Walker and Rosato were not informed of their home's past because California banks are not required to submit a disclosure form.
On the other hand, if you're looking for a great deal on a home and you think you can get past a grisly background, you might be able to find a bargain on a stigmatized property.
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