In 2008, when our home was purchased with an FHA loan, it was REQUIRED to have a termite inspection. We were working with a broker who was handling our end of things. We asked our broker for a full home inspection to be done and even requested to do the inspection ourselves. We were told that we COULD NOT do our own because it would be a conflict of interest and that the inspection would have to be completed by a certified home inspector. We left the broker's office insured that a home inspection would be done.
Next, the FHA certified appraiser came, and we know by the paperwork we have now, that he did not look for existing conditions in the attic or basement that would have required him to order the full home inspection. (I was on the property when he came to do the appraisal but I did not know at the time that FHA had changed their policies and was requiring that the appraisers be FHA certified to look for conditions like wet basements). In the event that the appraiser finds any of 4 conditions listed in the FHA's set of required reasons, an entire home inspection is to be ordered by the appraiser. We now know that our home has 3 of the 4 listed reasons, but because the appraiser spent 20 minutes on the property and didn't look in the attic or basement, the inspection wasn't ordered by him.
When a home inspection is ordered and the inspector finds things that are not up to code, the inspector reports his findings to the bank that's lending the money and then the bank stops the home loan process until the problems are fixed, if they can be fixed.
Because this was not done, we are left making payments on a home that is sinking due to old termite damage and a ground/surface water problem in the basement. Our home also was wired by the home owners sons whom, I assume, are not licensed electricians. It has only a 100 amp breaker box and they placed receptacles in the floor of the home (which was hidden by furniture when we viewed the property). Some of the floor receptacles are placed in carpet and we have had an eletrical fire in my daughters bedroom. We constantly smell the unmistakable stench of hot wire and will then find melted outlets, etc. Our roof has busted open several times and is in constant repair from the outer walls of the home falling from the termite eaten band. Our roof is also not in code. They placed shingles on an almost flat roof which causes leaks.
Over a year ago I started lookinig into what the problem could be and started having different departments come to the home to investigate. I have had a local mining company, the Department of Mines Minerals and Energy, my insurance company and a structural engineer come to my home. It was in this process that my husband and I looked back through our closing paperwork and discovered that although there are 6 pages of FHA inspection requirements in the closing, the actual inspection sheets are not there. When we dug deeper, we found that not even the termite inpsection had been ordered or done.
We called our lender and their loan servicing company, LoanCare. They will not talk to us. They will not return our phone calls. We told them that we are putting so much money into the home, just to keep it livable, that we would not make another payment until this was looked into. Their only response was to send us foreclosure papers.
I have spoken to several attorneys. The type of attorney I need to handle this is nowhere in our area and I understand that to sue (because 3 differnet companies/agencies and the closing lawyer are involved) would be a very expensive endeavor. We are a low middle class family with 3 young children. We waited until we were 40 to buy our forever home. It has 7 acres and we have livestock and a garden to help feed us. We have paid $700-$800 a month for 3 1/2 years for a faulty product and its because the lender didn't do their job!!!
Please sign my petition and force the loan company to admit fault and take action to help us, not throw us off our land.
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