If this needs to go into the Homeownership/Landlording section let me know.
My parents are renting, but retiring very soon and are looking for a house or townhouse to purchase. Due to the current housing market where we are, it has been challenging finding a place for them. They made an offer, which was accepted on a townhouse that needs some updating, but they still need a small mortgage to cover the full cost and fund the work needed to make the place livable. The problem they have is the place has an old water heater and very old gas furnace, the previous owner has already moved out and is likely very old because they live in a care facility now. The owner is not likely to have the funds to fix these issues until the house sells, which is obviously too late. My parents can't get insurance on the place until the hot water tank and furnace are replace, meaning they also can't get financing if it's not insured. They don't own it yet, so they don't want to pay for the work, but they can't buy it without the insurance. Is there a way around this?
The other thing that occurred to me is that the realtor said the place had an accepted offer before my parents made an offer, which "fell through due to financing" according to the realtor. Could this mean the realtor KNEW that the place couldn't be insured (the real reason the previous offer couldn't get financing) the way it was and let my parents pay for a home inspection and go though all the hoops of making an offer without telling them they wouldn't be able to get a mortgage? Is there any way to prove that he knew or get in touch with the other party that made the previous offer to find out what happened?
We are all feeling very stuck and any advice would be very helpful, thanks