I will elaborate further if asked, but I would appreciate some advice and help.
December of 2014 I closed on a property using a 203k loan. The repairs required by FHA were rolled into my mortgage. The repairs were to include Roof Repairs, Exterior Trim, All Windows, Cellar Glass Block Windows, A pre-hung steel rear entry door, smoke detectors, some ventilation work such as the hot water heater vent, some electrical work such as defective wall outlets, Drain Tile ... The total of the repairs were approximately $20,000.
The contractor has completely botched some aspects of the job.
Again I will elaborate further if need be.
My two main concerns right now are getting a professional inspector with experience in this area to inspect the repairs that have been done in order to inform me of exactly what has and has not been completed properly.
I also need to retain an attorney, in Buffalo NY, that has experience with 203k loans in order to finalize what will or will not be owed to either party in order to move forward with a new contractor to have the job done correctly.
I also would like to talk with any interested contractors that realize they would not be paid up front for repairs once I will be able to have a new contractor on site. Unfortunately, all funds would be paid by BOA once the repairs are completed and inspected.
Thank you kindly.
Was the contractor already paid in full before you had an inspection done/before you knew there were issues? Was a HUD consultant brought in (i know not required but suggested for a streamline 203k)?
There was a disbursement prior to any work being done, approx. 50%. The remainder was to be paid upon the completion of the repairs. After a HUD inspector agreed the repairs were completed to code etc.
I did ask the bank to send a HUD consultant. (at $150)
He was at the property yesterday and unfortunately he knew next to nothing about anything. I addressed this with the bank today. Good news is I am now working with a supervisor at the bank that seems to be motivated and ready to work with me. The inspectors report will be back by Thursday at the latest, but I am not being sarcastic when I say he literally had no idea what drain tile was or how it is supposed to be installed and operate.
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Don't think you need an attorney with particularly any 203k experience. This is a contract dispute between you and the contractor, and the 203k has little to do with any issues you have with him, other than the work required to be done. But, you'll likely have to get lien waivers from him, prior to the balance of your money being released....you'll have to apply some pressure, and not be intimidated by this. Hopefully the remaining 50% will cover everything.
I'll be happy to give a referral to an attorney I used, that has dealt with this in the past
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