Legal Eaze #92 Foreclosed Addendums/Gas Mileage

Title: June 11, 2008

Q: I want to buy a foreclosed property. Why am I being presented with all kinds of addendums to give up my rights to sue etc. etc. that I don’t really want to sign?

A: Because when you buy a foreclosed property, you need to be aware of potential risks that the bank cannot be aware of. When a bank forecloses on a property, they don’t know whether the previous owners dumped toxic waste in the backyard, or whether there are mold/mildew problems present, or dry rot problems, or pest problems. In other words, the bank personnel have not lived on the premises and the bank wants to ensure that you take the steps necessary to protect yourself before you buy a foreclosed/distressed property. You should hire a professional home inspector, and go to the County Recorder’s office and make sure that there are no liens or assessments against the property. This is called “due diligence”. You need to be aware of anything that could affect the property and your pocketbook in the future so that you don’t come to regret your decision to buy the foreclosed property.

Q: I just bought a brand new car, and was told by the salesman at the dealership that I would get a certain gas mileage. Well, he lied. I get a lot less miles to the gallon than what I was told. What can I do?

A. Did you read the materials that came with the car before you bought it? The specifications on the car should have given you the information you needed to make an informed decision before you bought the car. Now that you have driven the car for a while, it is very doubtful that you can return it because you are not happy with the gas mileage you are getting on the car. It is a little late for that. I understand how frustrating and expensive an error this is, especially at $4.35/gallon. To get back to my previous answer, you should have done your “due diligence” before buying the brand new car. You need to inform yourself about every detail of such an expensive purchase before buying.

Maxine de Villefranche has been an attorney for 15 years and is practicing law in Tehachapi and Lancaster. Send your questions via fax at (661)825-8880 or e-mail at maxinedev@msn.com. She will answer your questions to the best of her abilities.