mcdillio29
New Member
- Jurisdiction
- Virginia
My wife and I got a 203k on an old house, which is in a flood zone. We went through the whole process of getting contractor bids, a HUD consultant approved the bid, and the loan closed. When the contractor went to get permits, the city said since the rehab cost is greater than 50% of the home's value, we must bring it up to current requirements, which in this case means lifting the house 3 feet above the flood line. This would cost over $50k to do, which we cannot afford. This requirement is driven by FEMA, so the city will not budge.
My question is, with all the parties involved in making the 203k happen… bank, HUD consultant, contractor… shouldn't someone have known about this 50% rule and raised a red flag? I thought the reason they have so many check boxes involved in that loan process was to protect the buyer from something like this happening. If we can't get something figured out, we're gonna be stuck with a house that's unlivable that we can't afford to renovate.
I'm wondering if there's any legal action or process we can take to hold someone accountable for this, to provide the extra funds either to lift the house or to just build a new house (our contractor has told us for the amount of money already in our budget, plus the cost to lift the house, we could build a new house). We would also be interested in just getting out of the mortgage completely if possible, if we could at the very least get our down payment back.
Thanks in advance.
My question is, with all the parties involved in making the 203k happen… bank, HUD consultant, contractor… shouldn't someone have known about this 50% rule and raised a red flag? I thought the reason they have so many check boxes involved in that loan process was to protect the buyer from something like this happening. If we can't get something figured out, we're gonna be stuck with a house that's unlivable that we can't afford to renovate.
I'm wondering if there's any legal action or process we can take to hold someone accountable for this, to provide the extra funds either to lift the house or to just build a new house (our contractor has told us for the amount of money already in our budget, plus the cost to lift the house, we could build a new house). We would also be interested in just getting out of the mortgage completely if possible, if we could at the very least get our down payment back.
Thanks in advance.