Alright 3ADL, you guys are usually reliable...
I'm in the process of buying a house and on the day before my closing, I had my final walk through. Said walk through happened to be a couple days after hurricane Harvey....
I had drove by a couple times during and after the storm so I knew it didn't flood, but I was concerned about leaks. Low and behold, I found a leak in the living room ceiling and mold in an upstairs closet near the living room ceiling (the leak had gone untouched for several days in an unairconditioned house).
Long story short, the sellers and I delayed closing and it appears to be in their best interest financially to file an insurance claim.
They say the house is a financial burden for them since they've already moved out and we've already delayed closing a lot. They're willing to pay the deductible and have the insurance take care of the repairs but they want me to go forward with closing and takeover and manage the repairs through their insurance.
Have you guys ever heard of a situation like this? Would the bank even allow it? I called them today and no one there could give me an answer. They all said they need to talk to their bosses tomorrow.
Would you do it? What risk am I exposing myself to? I only intend to do it if I get the green light from the insurance company in writing that they're going to pay for the repairs and if they give me a document that says the insurance money will go directly to the contractors or to me and not the sellers. Thoughts?