Posted on Feb 8, 2018
SSgt Terry Jenkins
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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.
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SPC Tom DeSmet
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I live in Minnesota, and they push arbitration in these circumstances as part of the agreement. I had both a private and a VA inspection. They both are subject to visible damage and will not move anything to see what is behind.
As far as seller disclosure, good luck. I think we tend to get caught up in the emotional aspects of completing the purchase of the home, and especially the sale of the "old" house instead of focussing on the practical matters of inspecting it yourself and asking questions. We really should study up on the most common problems that can cost you a fortune and look really hard for ourselves in addition to the other "professional" inspections. I will tell you that the inspectors have every conceivable type of liability covered in their contract. Also, the inspectors loyalty is squarely aligned with the realtor agency because if they were to cost them a sale, the inspector won't be on the list of inspection companies presented for you to choose from and will find it difficult to find more homes to inspect.
My situation was that the home owner said there had never been any type of moisture issues with the house. It was still pretty cold at the time. The day after we moved in my wife screamed and told me there was a huge ant in the bathtub. I knew what it was as soon as I saw it- a carpenter ant. I began to look around and noticed a little saw dust below the ledger board on our deck. I continued to watch and caught one shoving sawdust out of a gap.I immediately called the realtor and then an exterminator.
The realtor was not helpful at all other than to suggest we call an exterminator. What we found out later was that their company had one realtor representing the seller and a different one representing us, and they would not get involved in any way because their boss told them to "stay out of it". They had no incentive to get involved. Then the exterminator let us know that the nest of carpenter ants was the largest he had ever seen. They had been dormant up until that time because pf the cold weather.
We spoke with a next door neighbor who told us that the previous owner had a contractor replacing the masonite siding under the deck and he had picked through the wood which was too rotten to use. We had a contractor come out and estimate repairs. They pulled a few boards and there was massive damage to the structure of the house, and the 2nd floor under the sliding door was collapsing.
We then contacted a lawyer to see what could be done. He explained about arbitration and told us to go ahead and repair the house and that we would have no problem recovering damages including lawyer fees from the previous owner. We kept in touch through this time and he communicated with the other parties lawyer as things progressed to try and get a settlement. Well about $18,000 later and we were ready for arbitration. In preparing for it we began getting signals from the exterminator, the contractors, and then even my next door neighbor that they really didn't want to get involved in the arbitration! They lawyer told us not to worry because this was such a "slam dunk" case we would be fine.
During the arbitration my "witnesses" did not exactly share all of their opinions that they had shared so freely with us. Then, we found our lawyer hadn't exactly prepared to include not remembering our name. He raised his voice at one point and the lady arbitrator told him to settle down and be respectful.
WE LOST THE CASE. $18,000 in repairs, but to add insult to injury we had almost $12,000 in attorney fees.
What I learned from this was that when you purchase a house, get a warranty, because no one else will have your back. Another thing I found ironic was that in the beginning we called our insurance company to see if they could help. Well, they let us know through the lender that they knew of the issue now and they wanted to make sure we repaired it to protect the value of the house. They VA said they couldn't help except for an "act of God".
I hope you can find help in this matter. Just don't compound the problem like I did with exorbitant attorney fees.
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PFC Allen Nichols
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You’re going to be barking up the wrong tree with VA and loan officers. Look over your buyers contract and find the disclosures that were made about the property. Next, talk to your neighbors about any repairs “Joe That Lived Their” made (drywall?) and get a name of the company. Call the company and ask for records, invite them to your home to see if that’s the location where the company made repairs. Once you can demonstrate repairs were not disclosed, then you will file a claim against the Realtor’s errors of omission policy. That’s where the money to cover repairs will come from...or maybe even void the sale.
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A1C Bill Jodeit
A1C Bill Jodeit
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If there are indications of recent repairs meant to conceal the foundation symptoms then the previous homeowner has liability. The extent depends on the state.
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Lt Col Doug Webster
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Did he get a home inspection prior to the sale? My guess is that if the problem was known prior to sale and not disclosed by the seller, he has a case (regardless of who holds the loan). If this suddenly appeared after the sale and the former owner had no reason to suspect, the owner and the lender are not insuring the property. This is a matter for the home owner insurance in that case.
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CPT Special Forces Officer
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Edited 8 y ago
The house could have been appraised by either a fee appraiser or a VA employee appraiser. Assuming that this is still the way it done, it could have a bearing upon the ultimate disposition. My mother was a fee appraiser and was always very concerned about missing something. Her concerns were not just motivated by her concerns for the veteran, but also out of concern for losing her position. Please realize she was most active in the 70s & 80s. As a general rule people took much greater pride in their work back then than now. If the veteran has insured by USAA they have a better chance than otherwise. Is the area where the house is built known for shrink swell soil? Is the veteran's Congressman or either of the Senators known to be be extremely pro-military, very anti-VA, or hopefully both?
Considering how irresponsible the government has become in the last 25 years, it may be time to visit:
https://www.gofundme.com/
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Sgt Kelli Mays
Sgt Kelli Mays
>1 y
CPT (Join to see) Since 2008 when DODD FRANK passed through obamacare...the rules/regulations/guidelines for lenders/appraisers/title companies/servicing companies etc....changed drastically. Appraisals can only be ordered by a third party. The lender cannot have any contact what so ever with an appraiser. on VA loans...only a certified and licensed appraiser with a VA certificate can appraise a property for a VA loan. There is a standard form and items/things the appraiser must look at...and the basic reason for the appraisal is to determine the value of the property.
What needs to happen here is to determine whether the seller told the truth/whole truth... and he needs to put in a claim to USAA...if USAA determines this is a pre existing issue, then this guy can actually put a claim in through this guys insurance company since it happened during/while the seller owned the property.
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CPT Special Forces Officer
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The information I provided relating to VA appraisals has little bearing on the issue in question. It does provide perspective as to the viewpoint of the VA. Dodd-Frank has no relationship to the Affordable Care Act (Obamacare). It is extremely difficult to determine if anything was a pre-existing condition after the fact. If the issue was initially documented on the appraisal form, the VA would not have guaranteed the loan and USAA would not have made it. If it wasn't documented then basically the problem did not exist. A structural engineer can come in and give his/her opinion, but it is still just an opinion. A VA appraisal carries more weight with the VA than any opinion. USAA is a great company. If there is any way they can assist a veteran they will. If he wants to go the way you suggest, he will have to prove the VA appraiser or the VA itself, to have been negligent. Good luck with that. The chance of proving a case like this very unlikely, but the potential costs are astronomical. This is a fool's errand.
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SSG Donald H "Don" Bates
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Doubt very much if VA will assist. I had VA loan many years ago and had to have insurance. If I knew where he lived I could possible recommend someone as I have repaired foundations in my past construction experience.
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Lt Col Dan Nicholson
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VA only guarantees that banks will be made whole if the veteran borrower fails to meet the obligations he agreed to when they made the mortgage loan, resulting in the bank foreclosing on the house. The house is collateral for the loan. Va does not get involved in home repairs or structural defects in the home, and they do not make the loans. They just act like an insurance policy for the banks against foreclosure. The borrower is responsible for inspecting or hiring a home inspector to discover such problems and either accepting them, or negotiating with the seller to repair any issues found or adjust the price, or walk away from the deal if unacceptable. Apparently, this was not done, and the defect was not documented at the time the home was purchased. So - now that the home sale has closed, the answer is too bad, so sad, go back to the seller to see if he will renegotiate a better deal. Otherwise, there is nothing the VA will do about the problem. The repairs are now the homeowner's responsibility.
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PO2 Mike Vignapiano
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He might have a case depending on how recent the Home Inspection was performed. Was the foundation even part of the inspection? If not, the inspector could be liable unless they specifically stated it was not part of the inspection and the buyer agreed and understood that it was not. Also, it should be covered by his Home Owner's Insurance. That of course depends on the type he purchased. A VA mortgage is not what it used to be. Although it allows a slightly higher Debt to Income Ratio, no down payment, allows no PMI/MIP and Guarantees the loan to the lender in case the service member defaults on it. In the past it also allowed for a lower rate and if you were buying a house within your first few years after discharge, your credit score did not matter.
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SP5 Andrew Jackson
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well they did inspect it so they must have missed something. OR someone got a few bucks
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PVT AuggieOne Chandler
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Theres only two big companys you should first get a price from. Cable Lock Foundation Repair and that can be your base. But ask around because i am only a MOP
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SPC Cristina Moen
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Do you have more information, I feel like this happed to me as well.
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