May 18, 2015
A reader asks, “We had both the appraiser and an inspector come out before purchasing our home. We worked out to have repairs made by the seller and everything passed their standards. Now that we are in the house the cracks that we were told by all three (the seller, the appraiser and the inspector)are leftover from a previous foundation repair are actually issues with the foundation (we have had three companies come out to verify and all say that there are no signs of previous repair).”
“We are trying to figure out how to approach this. We also found out, after signing, that our roof is also not covered by the insurance and will not be unless we get a new roof. There are 3 layers of roof and in our state/area only 2 are covered. Why the previous owner, appraiser and inspector did not mention this is beyond me. Any suggestions on who to talk to so we can get this resolved? I find it hard to believe that we are going to have to cover two MAJOR costs when both could have been taken care of by the seller before hand or we could have found another home had we known this was the way it was going to be.”
In cases like these it’s best to contact the FHA directly for assistance (1-800 CALL FHA) since the integrity of the appraisal is being called into question. But the borrower may find that hiring legal counsel is the best way to address the other issues including the home inspection, etc.
FHA loan rules, state law, or other legally enforceable statutes may be applicable in such cases, but only a legal expert who has a background in such cases will be able to determine what recourse might be available. When considering hiring a lawyer to deal with matters related to lending, real estate, etc. the borrower should be prepared to supply all the relevant paperwork, documentation, and receipts available from the transaction.
Those who seek legal help should consider writing out a timeline of events to help them remember all the steps involved leading up to the current situation. This timeline can assist a lawyer in building the facts of the case as well as help the borrower remember important details that may get overlooked.
Only the borrower can decide to commit to seeking legal help in these cases, and it’s best to shop around for legal counsel if it’s deemed necessary. Much like finding a lender or a new home itself, it is always a good idea to compare services, prices, and expertise before making the investment.
None of the advice given here should be interpreted as legal counsel, encouragement to hire legal counsel, etc. But a lawyer may be able to provide assistance and clarity to those who find themselves in circumstances where it’s unclear if state or federal laws were being followed properly in the course of a home loan or real estate purchase.
Do you have questions about FHA loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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