203k and bad contractor

5 Replies

I closed on a 203k loan almost 3 months ago. Present time the only work done has been a wall knocked down. I took out a 65000 loan built into my mortgage. My mortgage is 600 dollars more monthly. I was to have a new bathroom put in. My 2nd bathroom redone . New countertops. New floors. Dormers . As well as insulation. The contract states all work to begin no later than 30 days after closing and deadline is October 10 unless delayed.  Every week my lenders tell me he is doing this and that Trying to pull permits etc. I finally had enough and emailed the contractor 3 weeks ago. First time I spoke with him. He said he is being sued for copyright infringement and must cease all work until he can reopen his business under new name. He stated an interest in completing project. I have been trying to find a new contractor . No one is free or does not want to be involved. I tried reaching out to the actual contractor . He will not answer. My lenders have been useless. Throughout this whole ordeal they have been completely distant. I have had to rip their phone up to get answer.  That contractor agreed through signature ( legal document) to do work. No money luckily has changed hands. What are my options?

Well, now you're well and truly screwed, a victim of the 203k rehab game. My advice is to forget most of the rehab, do what you can do yourself, don't spend another penny unless you absolutely have to. Your lenders as you state are lying to you, your contractor doesn't want to talk to you, and you are certainly out of options for the rest of the summer months in finding other people to do this work.

Get out of your legal obligations, scale back your rehab, and save as much money as you can. You're going to need it.