Help with a Fannie Mae question, house value plumeted.

[ShanetheMortgageMan]

That's a good question mickie, it'll all be based on that "subject to" value... if that's not enough, unfortunately the 203k wouldn't be an option, and to get out from the debt a sale would need to occur.

[Anonymous]

HUH? SAY-GAN? I'm confused ?

OH, good news checked TU score is 727 better than I thought so hubbies must be higher (trying to find out)  Thanks again

[Anonymous]

if your house is appraised at 92K

and you owe 133K

Then you add 70K on repairs

That means the loan would have to be for 203 K to cover the current loan and the repairs.

An appriaser would have to appraise the value of the house (after all expected repairs are done), at I believe 95% LTV so around 215K

I THINK. 

Also, as Shane said, you would be hard pressed to get a second loan for another property with 40K in negative equity and low range scores. 

[WannaHouse]

---

@Anonymous wrote:

HUH? SAY-GAN? I'm confused ?

OH, good news checked TU score is 727 better than I thought so hubbies must be higher (trying to find out)  Thanks again

---

Was the TU score pulled from here? Make sure you are buying REAL FICO scores and not FAKO scores.

FINANCIALHELP25 (use code when you order..enter on the last page) will give you a 25% discount on your scores from here until Sept. 30th.  

Message Edited by WannaHouse on 09-18-2009 07:35 PM

[Jazzzy]

---

@Anonymous wrote:

I will try to be short and to the point any help or suggestion greatly appreciated.  K- bought our house in 03 for 147000. seller didn't disclose material defects, inspector didn't find them, will cost over 70k to fix. After problems found house is worth only 92k!  Took sellers and inspectors to crt and lost because of bad lawyer, and bad IL laws.  So in the mean time hubby goes to war, gets injured, now 100% disabled, I lost one of my jobs, (had 2 full time for 9 years) so income greatly reduced, we arent behind in mort, just can't do any  repairs, and house is almost condemable.  Don't want to bail, bk, or live like a pauper. 

I called lender about Pres, Obamas new programs, Don't q for anything because I haven't stopped paying and not in the red, so only option is to hope the mort. co can come up with something, said reduced int. rate. also could possibly Loan modify what should I know that they won't tell me.  ?

We need to be able to build a new house in the near future, then fix this one (we have to gut it) and sell, or rent it out.  OR build new foundation move the house and rehab it. (big mess)

Anyone know if options warnings caveats?   

Thanks so much  oh hhi is 54k dti is less than 31%

---

How do you know the property is only worth $92k? Did you have an appraisal done for the court case?

What type of material defects are we talking?

[Anonymous]

C- where should I start?( was our first house we trusted our inspector and the ministers that sold it)

1) The house sits too level to the ground, and the foundation wasn't prepared right, the ground around the house is too level and in fact leans towards the house, so the water aims straight to the house, the crawl floods (i mean FLOODS) during the smallest rain.   So the sill plates need replaced

2) to hide it the sellers installed a sump pump in the crawl, and it runs straight into the aeration system, which they

Dug a pit for next to a foundation pier which has caved in so much water enters the crawl that it

3) becomes overwhelmed can't flush during rainy season, and the house fills with a wonderful toxic odor.  That's okay cause the piers were improperly done, and don't support it well anyway

4) the vent pipes don't even reach the vent covers outside, the bath fan doesn't either causing a nice toxic mix of mold on the roof decking which

5) has become weak, and isn't properly built anyway so we have sagging the entire length of the house in fact you can actually use our roof for a nice spring board and do acrobatic manuevers which is good practice for the electrical shock you get when

6) the aeration system turns on because all the electrical in the entire house needs redone, the kitchen is entirely wired to one circuit breaker hope your not hungry! use the stove fridge dishwasher and overhead light at the same time or in any combination, and you blow the fuse, dont look for the box in the attic to turn it back on because

7) if the mold doesn't kill you, the fumes from the heater will, that doesn't reach the vent either, but watch out for the electrical lines they aren't properly installed if you kick one you will start a fire!

The P trap in the bathroom is installed upside down so the nice septic fumes have no where to go (yum) the vent tube for toilet ties into the hot water heater, all the plumbing runs uphill instead of down AND is secured with baling wire.

The propane lines were actually secured by ELECTRICAL LINES !

The master bedroom has heating vents that go nowhere so NO HEAT NO AC

WOW Sorry but I gotta stop - makes me want to go hunting -YA KNOW?

[Anonymous]

To answer the other parts of your questions, my lawyer hired an architect to find all the issues, the appraisal was done for the case by a licensed appraisal, and NO that's not all thats wrong.

[ArmyStrong]

.........., my goodness! I have nothing to offered but my best wishes to you!!

[Anonymous]

I agree with ArmyStrong.  THis whole situation is horrible.

If you don't mind asking, what was the reason the judge ruled in favor of the ex-owners.  It seems that the ex- owners, the home inspector, and the home appraiser all had to know to some degree about these problems. 

[Anonymous]

In the State of Illinois the majority of Home inspectors have a clause in their contract that says you must go to arbitration if an issue arises.  Arbitration clauses also include a limit for suit.  In the case of most home inspectors, this means the price of the Inspection, which in our case is 250.00. 

Further the laws that govern home inspectors in Illinois (and many other states) are written in such a way that although an inspector must be licensed, and how many hours of each area they must be trained, there is absolutely no protection for the harmed homeowner.  A law with no teeth.  It meerly exists to make sure the State gets it's charge for the actual license. 

When we went to court the sellers admitted they hid defects, the inspector admitted he saw some of the defects but didn't report them to us because in his opinion he didn't have to. 

When a civil law is passed where there is room for interpretation, it takes lawsuits to define how the law is intrepreted.  When there is an arbitration clause, the case cannot get to court because of the language of the clause,  Therefore, it cannot be tested.

I would tell anyone NEVER WASTE YOUR MONEY ON A HOME INSPECTOR!   FIND AN ARCHETECT, TAKE HIS CONTRACT TO A GOOD LAWYER, IF IT GIVES YOU PROTECTION HIRE HIM INSTEAD.

YOUR BIGGEST INVESTMENT DESERVES IT. 

The sellers only had to pay for what they accidently admitted to.  We got roughly 6000.00 but spent 10,000.00+ on lawyers, depositions, court costs, inspections, and archetects. 

The archetect would have only cost us 500.00 to 1000.00. I would have rather spent that to learn it was a horrible investment, than to lose so bad.