Posted on Feb 8, 2018
If my house is financed by VA and I have suddenly had bad foundation damage, is there a way to get the VA to assist?
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I have a Vet in our program over $20k quotes to repair and lawyers say thousands to fight. He is young and trying hard in our program to better himself. I’ve never financed through VA but assume if the closing documents listed no damage and now some is showing up he should have some sort of assistance. Just want to point him in the right direction.
Home
Home Loan
Home Repair/Improvement
Home Inspector
Posted 8 y ago
Responses: 42
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VA didn't finance your loan. They just backed up the 20% you'd normally have to chip in as a down payment. So their "exposure" is small. Going to bat for you isn't in their Charter. The lender, who footed the entire bill, is the one having the most risk. In general, most sales agreements have a lot of words about "good faith", i.e. as far as I know, stuff is OK. When something happens that wallops OK, then you do the normal drill of checking out your homeowners policy. You also look to see if all the "good faith" stuff was true in that would a "reasonable person standard" in a similar situation doing a sale act the same way the players did. Same question points to the RE Agent, Title Company, and inspection outfit. Look to see if all the permits were in order on original construction. Many times a foundation bust (settlement, etc.) has to do with the water table changing or frequently a neighbor uphill does some landscape or drainage changes which pushes a lot of water underground to your property and weakening the substrate. Happens a lot in coastal California. Standby to see the various players scatter. Unfortunately, many of these issues wind up in a civil tort case. Foundations are a tricky thing people take for granted. The real "what caused it" is often clouded by people spouting theories designed to point the finger elsewhere. Sorry you have thing to deal with. Nobody deserves it.
Oh, I'll add as a Civil Engineer, this stuff is fixable, but at a cost. Foundation stabilization usually involves jacking, injection grouting and maybe bentonite injection as well. The big thing is stopping whatever is causing the settlement, lest you do a fix only to have a repeat.
Oh, I'll add as a Civil Engineer, this stuff is fixable, but at a cost. Foundation stabilization usually involves jacking, injection grouting and maybe bentonite injection as well. The big thing is stopping whatever is causing the settlement, lest you do a fix only to have a repeat.
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PO2 Kevin Parker
I just watched a Property Brothers show where one of the Brothers was redoing a house he bought for himself and his bride. They had to do everything your last paragraph described. The house is in California.
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SSG Tammy Joy Partridge
Shouldn't the home not have passed the VA home inspection prior to purchase with VA certificate? This is a shame this happened.
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RP Members, Friends, and Connections need your assistance and thoughts on this question posted by SSgt Terry Jenkins Click on the link and give us your feedback:
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https://www.rallypoint.com/answers/if-my-house-is-financed-by-va-and-i-have-suddenly-had-bad-foundation-damage-is-there-a-way-to-get-the-va-to-assist
Dustin Beardslee Gary Eulenfeld Cpl Rick Rabenold GySgt Tony Pantoja CPO Lou OliverTSgt Jeff Sukeforth PO3 (Join to see) MSG Robert LeeLCDR (Join to see) MSG Charles Turner CPL Chris Jacob PV2 (Join to see) SPC John Geary 1SG Leon Espe MSG Louis Alexander PVT Iven Clark Jr.
If my house is financed by VA and I have suddenly had bad foundation damage, is there a way to...
I have a Vet in our program over $20k quotes to repair and lawyers say thousands to fight. He is young and trying hard in our program to better himself. I’ve never financed through VA but assume if the closing documents listed no damage and now some is showing up he should have some sort of assistance. Just want to point him in the right direction.
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Sgt John H.
Good Info COL Mikel J. Burroughs . We had so many issues with the VA process years ago that we just went around it...
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Lt Col Charlie Brown
We make sure we have an inspector recommended by the agent representing us do an inspection, even if the other side has done one. To answer the question, the VA will not help with this.
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PO1 Kevin Dougherty
Hopefully you had a full inspection done by a licensed home inspector. If so you may have some recourse there. I know when we had our's done, (I have spent 35+ years working in the trades, but still paid for an inspection, and he did actually spot a couple of problems I missed), his work was guaranteed, a we were covered for anything that came up for a year. The only other hope would be if you could prove the previous owners knew, or should have known about the problem and did not disclose, you may have a case against them. Last but not least talk to the actual lender, they may have some answers for you. Good luck brother.
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SSgt James Tadlock
Foundation problems. Have to call someone like Ram Jack. I have had 3 or 4 VA loans with no problems except one house had plumbing problems and damaging water leaks. I was in a class settlement on it but never got anything. I would call VA about the problem and seek help. I think that they would give at least some advice on it.
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Thanks everyone, please keep the advice coming. I am getting smarter by the minute. My plan is to work with this soldier and prepare him and then make a few calls on his behalf and see if I can throw some weight around. At a minimum the bank should be able to help him better on the loan for the repairs. With a little pushing and maybe a lot of Vets calling and perhaps a congressman and media leak I can get some attention put on this where someone will help. There is power in numbers. One of the things I have noticed in doing this program is that with all of the Veteran programs in the world Veterans still feel alone. I will make a call to the bank and let them know I will point an army towards them if they don't step up. First I have to prepare for battle, understand the enemy and then attack with a vengeance. I set out to train Veterans in IT but that is just 25% of who they are the other 75% needs to be addressed as well. How can a guy worry about job and learning new skills when he goes to bed at night worried if his house with collapse on his daughter.
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LTC Wayne Brandon
It's great that you are willing to take your time to assist this young man. This is a good work, Terry!
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SSgt James Tadlock
Surely need to find what caused the problem and have it corrected after the foundation repair. Could be something that a "French Drain" could handle.
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Lt Col Dan Nicholson
Your efforts to help a young troop are admirable, Terry - but I think you are spinning your wheels and fighting a losing battle on his behalf.
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SSgt Terry Jenkins Did you get a disclosure from the seller. In in some states you many have recourse if the seller knew and did not disclose it.
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MCPO Roger Collins
Best advice so far. The damage repair is obvious, wasn’t that there when you closed?
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Ah yes- quick repairs to cover existing damage and nothing on the disclosure I am guessing. You may have some recourse if an inspection was completed. If you paid for a structural inspection (which in some areas you should) and they gave an opinion- you may have some recourse. Normally they inspect "what they can see" and the structural/mechanical inspections are above the normal walk through. When I lived down south- if you lived in a reclaimed marsh/bayou area you would do this as a matter of habit. The foundations moved all the time and shoddy contractors put up many homes quickly and moved on- 5 to 10 years later these homes were moving apart from themselves and costing several 10s of thousands of dollars to repair. I hate to say it, but without the in-depth opinions listed above, it is a buyer beware market on real estate as it is next to impossible to prove intent. Anybody else have anything here?
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Maj Marty Hogan
SGT David A. 'Cowboy' Groth SSG (Join to see) they only look at face value. If there is new drywall, plaster, paint, etc you can't see the damage underneath until the house continues to settle. I have seen many get burned in this fashion- the other is termite damage. If you do a mechanical inspection and pay extra they should find it- if they don't you have some recourse. If you do a normal inspection- they state it "appears" to be fine. That is the key because they either state we can only see the surface and this is not an endorsement to structure.
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SSG(P) Dan Keene
Sometimes they, contracted inspectors, are unskilled morons. I did a purchase punch list on a condo once and the inspector wrote that there was a hole in the exterior pony wall of a balcony that needed to be closed up. It was a scupper drain for the concrete patio to drain storm water, instead of forcing it to soak into siding sheathing. I actually had to get the structure blueprints for the buyer to continue with purchase because a licensed inspector had noted the deficiency.
I always recommend using a reputable inspector before even making an offer.
I always recommend using a reputable inspector before even making an offer.
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Having some experience (personal and professional) in government backed lending and other real estate finance, I'll start by echoing what CAPT Kevin B. said; the VA only guaranteed the loan--kind of like an "insurance policy" for the lenders--but VA didn't make it, so there's no remedies to be found with VA. Now, when looking at the pictures, some of these are rather significant cracks indicating some serious settling issues. Where there signs (minor cracks or obvious localized repairs) prior to purchase? How long ago was this purchase closed? Was there anything noted in the disclosures when the house was purchased?
There was an appraisal when going through the loan process, but was a home inspection done? They're not one in the same, though appraisers will look for obvious defects which would have an effect on the value of the home. If an inspection was done was anything noted at the time?
I don't know if there's any easy remedies here. Sounds like this will have to be figured out in the courts. One way or the other, it'll cost. I wish this person the best of luck.
There was an appraisal when going through the loan process, but was a home inspection done? They're not one in the same, though appraisers will look for obvious defects which would have an effect on the value of the home. If an inspection was done was anything noted at the time?
I don't know if there's any easy remedies here. Sounds like this will have to be figured out in the courts. One way or the other, it'll cost. I wish this person the best of luck.
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SPC Daniel Rankin
In many states there are full discloser laws. That could work in his favor is they have one in his state.
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SGT Dave Tracy
SSG Edward Tilton - Not exactly, if you are referring to the VA home loan-if I misunderstand you, and you meant something else, disregard the following.
The program was (basically) conceived to allow qualified vets and SMs to buy homes with no required money down and pay no private mortgage insurance; and if a vet has a certain % of disability, even the small funding fee gets waved.
So, with no financial "skin in the game" for the borrower, that's a lot of risk for a lender. And normally, with higher risk, banks charge higher rates. With the VA sharing some of that risk by backing some potential loss, it allows for lenders to make such zero-down loans and offer them at rates comparable than what one could get in the open marketplace for conventional loans.
Vets get a great program to open the door to homeownership, and banks can make more loans with no additional risk. Its a win-win.
The program was (basically) conceived to allow qualified vets and SMs to buy homes with no required money down and pay no private mortgage insurance; and if a vet has a certain % of disability, even the small funding fee gets waved.
So, with no financial "skin in the game" for the borrower, that's a lot of risk for a lender. And normally, with higher risk, banks charge higher rates. With the VA sharing some of that risk by backing some potential loss, it allows for lenders to make such zero-down loans and offer them at rates comparable than what one could get in the open marketplace for conventional loans.
Vets get a great program to open the door to homeownership, and banks can make more loans with no additional risk. Its a win-win.
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Sgt Kelli Mays
SSG Edward Tilton - it's NOT a benefit to the lender. and it is a Benefit to the buyer...VA loans do NOT require MIP/PMI...mortgage insurance premium like FHA or any conventional products...this means your monthly payment on a VA loan is MUCH lower...also, VA rates are typically lower than Conventional rates...so there are some plus's...and the BIGGEST PLUS of all is VA loans are 100% financing...meaning there is NO down payment, unlike FHA which requires a mandatory 3.5% down payment and conventional loans require between 5% to 20% down. SGT Dave Tracy SSgt Terry Jenkins SPC Daniel Rankin
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When I used my VA benefit, the loan itself wasn't serviced by the VA, but by a third party...then sold within the first year to another party. During the process, a VA approved inspector did have to sign off on the home, and I was present for the inspection. My sense was that when he signed off on it...that was the end of the VA's accountability for the condition of the home. Regarding the seller's liability; as the agreement included a clause essentially stating the seller and I had agreed upon the conditions prior to sale...I wouldn't assume they have any. There may be grounds for a case if the inspection was incorrectly conducted, or the seller willfully withheld information relating to the current damage, but sadly, this may be on the buyer's account.
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Sgt Kelli Mays
LCDR (Join to see) VA only guarantees 40% of the loan. they are not or never the lender. the inspection was not an inspection but it was an appraisal to determine the value of the property and to make sure there are not any major or minor defects...unfortunately, the appraiser is not qualified to determine whether the property has foundation issues unless it's obvious. Only a profession inspection company with an inspector who is trained and qualified on foundations would have been able to determine if there was or might be a problem. The realtor for the seller is the one who is responsible, before putting the house on the market to find out everything about the house and question the sellers and have the sellers fill out a "DISCLOSURE FORM." which if they lie and are caught, can be punishable by a fine and or jail time...believe it or not.
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Was an inspection done on property? They usually have pictures. Is he within first 12 months of ownership? He may have a home warranty with it??
What state is property in?
What state is property in?
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PO3 John Wagner
Sgt Kelli Mays - I have just never seen a lender approve a loan without an inspection. I know I wouldn't want to lend money on a property without one.
A homebuyer can walk away and leave the lender holding the bag.
A homebuyer can walk away and leave the lender holding the bag.
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PO3 John Wagner
Sgt Kelli Mays - My home was financed by VA in 1990. Not only was a complete inspection required, absolutely everything that was noted had to be repaired prior to purchase.
This is why I am confused as to the root cause here.
There are many laws which require repairs to be disclosed.
This whole thing seems like a case of the affected individual not taking the proper steps to get the issue resolved.
Pester them continuously until someone caves and takes care of it.
Persistence will prevail.
This is why I am confused as to the root cause here.
There are many laws which require repairs to be disclosed.
This whole thing seems like a case of the affected individual not taking the proper steps to get the issue resolved.
Pester them continuously until someone caves and takes care of it.
Persistence will prevail.
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Sgt Kelli Mays
PO3 John Wagner - you are mixing up "inspection" with "appraisal." All Lenders require an Appraisal when purchasing a house. An appraisal is to determine the VALUE of the property and to check out the property for visible minor infractions. An appraiser is NOT trained to determine whether a property has or might have or eventually have foundation issues.
An Inspection is done by a professional inspector who is licensed to do inspection and has qualifications/certificates for foundation or roofing or HVAC and other issues of a property. The buyer would have to pay out of their pocket before the loan process started and pay an inspection company to inspect the property. The inspection report is extremely detailed and many pages and goes section by section of the property. An inspection is to determine items on/in/around the property of being in good condition, mediocre condition or needs attention.
An Appraisal is done purely to make sure the value is there and meets the sales price...the appraiser will check faucets to make sure water is running property...make sure any steps or railings are in good condition....that flooring is not broken... or tile in bathrooms etc....appraisers do not take into account cosmetic things...only things to assess the value of the property. doors and windows must work properly...to include closet doors...the appraiser will turn on the A/C and Heater to make sure it turns on, however they do not take the time to see if they are working properly.
Your home was financed in 1990. Like I mentioned in a post above....the VA used to require a full inspection. During the Obama administration...this requirement was done away with and is NO LONGER a REQUIREMENT...and it's now a choice. you can do it or you don't have to do it.
An Inspection is done by a professional inspector who is licensed to do inspection and has qualifications/certificates for foundation or roofing or HVAC and other issues of a property. The buyer would have to pay out of their pocket before the loan process started and pay an inspection company to inspect the property. The inspection report is extremely detailed and many pages and goes section by section of the property. An inspection is to determine items on/in/around the property of being in good condition, mediocre condition or needs attention.
An Appraisal is done purely to make sure the value is there and meets the sales price...the appraiser will check faucets to make sure water is running property...make sure any steps or railings are in good condition....that flooring is not broken... or tile in bathrooms etc....appraisers do not take into account cosmetic things...only things to assess the value of the property. doors and windows must work properly...to include closet doors...the appraiser will turn on the A/C and Heater to make sure it turns on, however they do not take the time to see if they are working properly.
Your home was financed in 1990. Like I mentioned in a post above....the VA used to require a full inspection. During the Obama administration...this requirement was done away with and is NO LONGER a REQUIREMENT...and it's now a choice. you can do it or you don't have to do it.
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PO3 John Wagner
Sgt Kelli Mays - My house was appraised for an increase in my home equity line of a couple years ago. The appraisers don't seem to care.
Any idiot could look at the house and tell I wired the entire thing myself.
There's no inspection. Of course I was an Electronics tech.... which doesn't make me an electrician. I figure since the place hasn't burned down in the last 28 years I must've done ok.
Any idiot could look at the house and tell I wired the entire thing myself.
There's no inspection. Of course I was an Electronics tech.... which doesn't make me an electrician. I figure since the place hasn't burned down in the last 28 years I must've done ok.
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can any of you assist or know anyone who can?
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SGT David A. 'Cowboy' Groth SGM Matthew Quick PFC Kyle Corcoran PO3 Galon Miller SMSgt Minister Gerald A. "Doc" Thomas PO3 Steven Sherrill LCDR (Join to see) SN (Join to see) SPC Todd Rhoades SSgt Christopher Mortell CPT Jack Durish SGT (Join to see) PO3 John Wagner CWO2 John Markiewicz LTJG Josh Thaxton Col (Join to see) Maj Marty Hogan PO2 Marty Sharpe PO2 Tom Belcher SPC Woody Bullard
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SN Greg Wright
Your mind's in the right place, AW3, but for best wide-spread coverage in your tagging, be sure to always include COL Mikel J. Burroughs , who has by far the largest reach on RallyPoint.
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