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  1. #1
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    Default HUD inspection pending for completed work

    We have been notified by our bank that an inspection will be made next week to assess the work we've completed on the house we've rehabbed using a 203k loan. We;ve been working largely in the blind on this project, as the bank holding the 203k money have been real SOB's and made our life a nightmare, and they also seemed to have known even less then we did about the process. It was news to us that we even had to go through an inspection - all we'd been lead to believe all this time was that we had to keep all our receipts and figured that some number-cruncher would come round at some point just to be sure that we had spent the money on the house. Now we're having a nervous breakdown wondering if there's anything we left out or should be aware of. Don't get me wrong, we've put our heart and soul into the work and have accomplished wonders with the money, largely through my doing all the work and not working all this time - I've even custom made most of the cabinets to save money and stretch our resources out. Only thing is that we were given pretty short notice that our time was up and I had to skim over a few rooms to get them presentable, and after the inspection I'll tear into them and REALLY do the job I want with our own money. We've already spent 10k over the funds borrowed via 203k,, and we'll probably spend another 30k of our own money to complete the project after the HUD people are out of the picture.

    So can anyone tell us what to expect next week? Is it a full on inspection like a normal home inspection at purchase, where every detail from roof to ground level is looked at, or is it basically just a numbers game to check that we've done the work as promised?

    Any thoughts would be much appreciated, as we don't want to possibly lose the house or have some kind of trouble with HUD because I've missed an outlet or something.

    Thanks.

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  2. #2
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    Default Re: HUD inspection pending for completed work

    Quote Originally Posted by stephen bishop View Post
    We have been notified by our bank that an inspection will be made next week to assess the work we've completed on the house we've rehabbed using a 203k loan. We;ve been working largely in the blind on this project, as the bank holding the 203k money have been real SOB's and made our life a nightmare, and they also seemed to have known even less then we did about the process. It was news to us that we even had to go through an inspection - all we'd been lead to believe all this time was that we had to keep all our receipts and figured that some number-cruncher would come round at some point just to be sure that we had spent the money on the house. Now we're having a nervous breakdown wondering if there's anything we left out or should be aware of. Don't get me wrong, we've put our heart and soul into the work and have accomplished wonders with the money, largely through my doing all the work and not working all this time - I've even custom made most of the cabinets to save money and stretch our resources out. Only thing is that we were given pretty short notice that our time was up and I had to skim over a few rooms to get them presentable, and after the inspection I'll tear into them and REALLY do the job I want with our own money. We've already spent 10k over the funds borrowed via 203k,, and we'll probably spend another 30k of our own money to complete the project after the HUD people are out of the picture.

    So can anyone tell us what to expect next week? Is it a full on inspection like a normal home inspection at purchase, where every detail from roof to ground level is looked at, or is it basically just a numbers game to check that we've done the work as promised?

    Any thoughts would be much appreciated, as we don't want to possibly lose the house or have some kind of trouble with HUD because I've missed an outlet or something.

    Thanks.
    .
    Stephen,

    The attached link Rehab a Home W/Hud's 203k Rehab Program has the Requirements the HUD Inspector ( not HI ) will be confirming is present.
    .

    It Might have Choked Artie But it ain't gone'a choke Stymie! Our Gang " The Pooch " (1932)
    Billy J. Stephens HI Service Memphis TN.

  3. #3
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    Default Re: HUD inspection pending for completed work

    Quote Originally Posted by stephen bishop View Post
    We have been notified by our bank that an inspection will be made next week to assess the work we've completed on the house we've rehabbed using a 203k loan. We;ve been working largely in the blind on this project, as the bank holding the 203k money have been real SOB's and made our life a nightmare, and they also seemed to have known even less then we did about the process. It was news to us that we even had to go through an inspection - all we'd been lead to believe all this time was that we had to keep all our receipts and figured that some number-cruncher would come round at some point just to be sure that we had spent the money on the house. Now we're having a nervous breakdown wondering if there's anything we left out or should be aware of. Don't get me wrong, we've put our heart and soul into the work and have accomplished wonders with the money, largely through my doing all the work and not working all this time - I've even custom made most of the cabinets to save money and stretch our resources out. Only thing is that we were given pretty short notice that our time was up and I had to skim over a few rooms to get them presentable, and after the inspection I'll tear into them and REALLY do the job I want with our own money. We've already spent 10k over the funds borrowed via 203k,, and we'll probably spend another 30k of our own money to complete the project after the HUD people are out of the picture.

    So can anyone tell us what to expect next week? Is it a full on inspection like a normal home inspection at purchase, where every detail from roof to ground level is looked at, or is it basically just a numbers game to check that we've done the work as promised?

    Any thoughts would be much appreciated, as we don't want to possibly lose the house or have some kind of trouble with HUD because I've missed an outlet or something.

    Thanks.
    How much is the 203k loan for?

    Too many unknowns to tell you what you are facing. I do 203k consulting but all of my clients know upfront that we will have a feasibility inspection and then draw inspections as the work progress. They also know my associated fees for that work.

    Sounds like your lender has dropped the ball.

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

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    Default Re: HUD inspection pending for completed work

    Stephen,
    Did the lender give you the entire amount of the bridge for repairs at one time?
    Have you had any inspection for draw on the loan?
    Have you completed the items that were listed in the origination of the loan?
    Do you have the documentation of the items that were listed in the bridge being completed?


  5. #5
    stephen bishop's Avatar
    stephen bishop Guest

    Default Re: HUD inspection pending for completed work

    Okay Garry and Scot, this might give you a clue on what we've been through, because most of what you're telling me is all new to me. This is what it has been like dealing with the associated banks, not least Bank of America.

    The first bank involved in all this, who got us the home loan and arranged the 203k, didn't have a clue about the process and screwed us up royally - we wanted the full 35k because we desperately needed the full amount for the work on the house, but they accidentally took the 10% hold back that was supposed to be factored in and accidentally deducted it from the total in the paperwork - we only received 31.5k in total (less 10% holdback again on that sum) and no one in the process from our end ever noticed the error at closing. There was supposed to be a certain document in the paperwork outlining it all, but it was missing, and of course the bank wouldn't own up or even apologize for the screw-up. Our broker missed it, we missed it (we saw the sum, but just kept thinking they were talking about the amount less the 10% holdback, not the fact that the figure quoted was the ENTIRE amount left to us. For months afterwards, we kept referring to the full 35k and no one with the first company we dealt for the 203k said anything. It was only when it went to BOA months later that someone queried why we kept quoting the 35k figure, when we only had a total of 31.5k at our disposal.

    The first company went belly up after a few months because the feds discovered some financial 'impropriety' had gone on. We sat in limbo for months, and were eventually told that the whole mess had been passed on to Bank of America. Six months after the 203k loan had been handed out, we were being given ultimatums by BOA to finish the work in a ridiculous small amount of time, and it was only after my wife had written a distressed email to every major executive at the company that one of them contacted her and basically said – ‘take all the time that you need.'

    By this stage the only thing we'd managed to do was draw up a list of things we wanted to do to the house, and what was needed (mold remediation, roof repair, new kitchen, etc) but at no stage were we told that this was written in stone. After what BOA told us we just used it as a guide, doing the essential repairs of course, but changing a few things here and there as we became more acquainted with the house and new ideas came up that improved on the old. So I put in arches where we’d never planned any at the beginning, a few art niches here and there, tray ceiling in the living room, a granite-topped bar that I custom made myself, a built-in entertainment center to save money on buying a free-standing one, a Japanese –style screen covering the skylight opening – you get the drift. There were also additional expenses we never planned on, such as spending over $1,000 to have the main concrete floor of the living area leveled when we discovered it was way too uneven for the wood flooring I’d planned for the area.

    Slowly but surely, over 18 months we’ve totally transformed the living areas and our children’s bedrooms, which had to be stripped back to the studs because of the mold issues. Instead of trying to spread the 31.5k over the whole house, we decided to use it mainly on the living spaces and the two bedrooms because that was where it was needed most. The point was even further emphasized to us when my wife received a small inheritance from her grandmother – we decided to double the amount we’d set aside in total to work on the house (from 40k – which included the 203k money – to 80k) bearing in mind that I’m doing just about all the work myself. By our estimates using contractors would easily be doubling or trebling this total. So you can see our point – rather than do a skim job with 31.5k on the whole house, we want to complete the job to a much better standard with considerably more money – we just wish HUD and BOA had left us alone to complete the job, to our standard, in a way that could really show what can be accomplished via the HUD scheme.

    But here’s the point to what you asked – we’ve NEVER been monitored through the last 18 months, no one has ever inspected our work periodically or called us to question our progress. Only since BOA gave us their ultimatum a few months ago has someone from the bank phoned once a month to cursorily check on our progress. In fact, as far as my wife and I can recall, there was never even a preliminary HUD inspection of the property done before we commenced the rehab.

    Also, we’ve never been told there was a prescribed list of work to complete as per the flaws in the house, and it wasn’t until last night when I did some research that I saw something to the effect that you have to apply for permission to make changes to the ‘prescribed plan’ for the renovation. All we were ever told, at the very beginning, was that HUD simply needed to know that we weren’t using the money for anything other than the house and that we needed to keep hold of all our receipts. That’s it. There’s never been any requests for ‘list of completed work’ or anything like that. No one has been around; no one has really queried our work. Zip.

    As for the money, you want to know what a nightmare that’s been? We thought BOA would simply cut us checks every now and then to cover out costs and as we sent in receipts. NOPE! They told us flat out they’d only cut checks twice during the project, once at the beginning (for around 13k) to cover the initial expenses we incurred to repair the roof leaks and mold remediation, while the rest we’d have to cover ourselves until the end of the project. So basically, for the last 18 months we’ve been carrying more and more on credit cards (with all that interest of course) to the point where we currently owe something like 20k on the cards, plus we’ve also paid out about another 8k from our own cash reserves. To show how committed we’ve been to the project, we would have kept on with the financial burden thrust upon us by BOA to see the whole project through to where we wanted it to be in about 12 months time. All being well with the inspection next week we’ll finally get reimbursed by BOA for all our expenses, pay off the credit cards, and complete the project under our own financial steam. But we really wanted to do it all in one hit and then have it inspected, just to thumb our noses at all the SOB’s who’ve made it all such a nightmare and to show what we’ve accomplished in spite of them, rather than because of them.

    Maybe, with all I’ve stated in this lengthy post , you might appreciate why we became panicky when firstly, BOA did a complete back flip on giving us carte blanch to finish the house in our own time, and instead gave us four months (after we’d argued them up from a ridiculous one month deadline) and secondly, when we were told that an inspector would be coming round and I finally found out online last night what we should have known from day one – regular inspections and dialogue, completion confirmations for various aspects of the project, compliance with an original list of work we’d vaguely drawn up when we were still feeling our way with what we wanted to do with the house and didn’t know that we could be strictly held to it – on and on. We’ve changed direction on a lot of things, all for the better of course, but never knew we were supposed to formally notify anyone of the proposed changes.

    So perhaps you can understand why we became so concerned, and why my wife and I virtually didn’t get any sleep last night worrying about the ramifications to all this? Could we lose the house? Will BOA call the loan on the house if the inspector states that we deviated from the ‘mission statement’ too much? Is there some kind of punitive financial punishment about to be landed on us? We’ve acted in good faith and with lofty aims through all this only to discover that we were given virtually zero guidelines on the process, have had zero oversight on our work by HUD or BOA when there apparently was supposed to be some – all by a banking system that has made the whole thing as difficult and nasty as possible. We constantly keep getting computer-generated letters from BOA calling our loan, telling us that our rehab deadline was up 12 months ago and that any money spent since then will not be reimbursed, etc, etc, and every time my distressed wife phones BOA as a result we get the regulation reply to ignore these apocalyptic notes and continue unconcerned with our work. And bear in mind that all this has been accomplished while me long-suffering family has lived in a virtual building site for the better part of two years.

    If anyone’s curious I’ll happily provide before and after pictures of the work I’ve done in the various rooms to show what we’ve accomplished. Everyone who’ knows what a disaster it was to start with has been very impressed. It’ll be even more impressive when we finally finish it the standard we’ve aimed for. The two bathrooms, the master suite, the Florida room, and the room that will eventually become our study have yet to really be done. We’ve just tidied them up for the HUD completion inspection and hope the guy thinks they’re acceptable, appreciates the work we’ve put in elsewhere, and realizes that the same effort will be put in with these areas, out of our own pockets. We just wish we could convince him, and HUD ,to give us another 12 months so they can really see what we want to do to the house entirely. But at the very least we just hope that they’ll give us a pass, give us our money, and let us move on.

    A last point to Scott – if you have experience of the process, what should we expect next week? Is it like a normal home inspection, or is the HUD inspector simply going to go over our initial proposal, look at the work that’s been done, and see if we’ve complied with it and/or confirm that all the money we’ve claimed to have been spent on the house has actually gone where it should be? I ran it all past our own home inspector, who is also a friend, and he suggested that it would be more the latter rather than the former and to simply ensure that everything looks tidy and professional and to ensure that safety issues such as smoke detectors are in place.

    Again, sorry for the long post.

    Last edited by stephen bishop; 03-10-2012 at 03:01 PM.

  6. #6
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    Default Re: HUD inspection pending for completed work

    Sounds like you have a 203K STREAMLINE program HUD loan ($35,000 or less - no projects requiring a permit, such as changing/modifying plumbing, electrical, structural changes - moving walls, etc., minor roof repairs not reroofing, etc.).That (streamline program loans with $35K or less for projects, and no projects requiring permits for legal work) usually doesn't entail a 203K HUD consultant, but a HUD "compliance inspection" similar to what you had to get for the property initially/HUD appraisal.Seems perhaps you've gone off-track and engaged in projects requiring permits and doing projects beyond the scope of your 203K streamline project funding.Should be like your original inspection/HUD appraisal, but slightly focused on the LIST you declared for completed projects and the expenditures regarding the LIST of repairs the construction loan was earmarked for, and no new non-compliant issues with the property.You mentioned this list was missing from your closing documents. By now the servicer should have a more complete file. Although you mentioned roof repairs, mold remediation, presume replacement of insulation, kitchen repair or rennovation, etc. unclear if those "before you closed and got into the home" repair projects and what the stated intent of the construction project loan was actually used for those projects and if those projects are completed.203K streamlines aren't generally for decorating, etc. They are limited, as the more risky "constuction loan" status needs to be compliance inspected, verified the projects are completed, the property meeting HUD program standards (all buttoned up and beautiful, screens on windows, outlet covers installed, walls finished, roof, doors, etc.) the "earmarked for specific project" funds have been properly applied for those designated projects, and that the completed property meets underwriting standards, and the loan to value is correct (HUD APPRAISAL) for conversion to the less risky (for the investors and the government guarantee insurance) regular mortgage.Yes there are and were timelines and deadlines. Despite your having "improved" the property in "other ways" and your opinion of those improvements completed, they are only interested in seeing the projects the loan was for being completed, and the overall property meeting HUD guidelines at the time of compliance inspection -- as if you were to halt all work, and you and your family's belongings were removed - that the property is ready to be underwritten as a compliant home for the LTV - and that the value appraises under HUD guidelines meeting that number on that day.Other unfinished projects may likely disqualify property compliance - the earmarked funds for the declared projects - those projects must be completed and meet HUD guidelines (like HUD compliant backplashes for wall abutting countertops, etc.).IIRC you made mention of missing or unfinished "outlets" in the original post - what was that about?
    Quote Originally Posted by stephen bishop
    Okay Garry and Scot, this might give you a clue on what we've been through, because most of what you're telling me is all new to me. This is what it has been like dealing with the associated banks, not least Bank of America.The first bank involved in all this, who got us the home loan and arranged the 203k, didn't have a clue about the process and screwed us up royally - we wanted the full 35k because we desperately needed the full amount for the work on the house, but they accidentally took the 10% hold back that was supposed to be factored in and accidentally deducted it from the total in the paperwork - we only received 31.5k in total (less 10% holdback again on that sum) and no one in the process from our end ever noticed the error at closing. There was supposed to be a certain document in the paperwork outlining it all, but it was missing, and of course the bank wouldn't own up or even apologize for the screw-up. Our broker missed it, we missed it (we saw the sum, but just kept thinking they were talking about the amount less the 10% holdback, not the fact that the figure quoted was the ENTIRE amount left to us. For months afterwards, we kept referring to the full 35k and no one with the first company we dealt for the 203k said anything. It was only when it went to BOA months later that someone queried why we kept quoting the 35k figure, when we only had a total of 31.5k at our disposal. The first company went belly up after a few months because the feds discovered some financial 'impropriety' had gone on. We sat in limbo for months, and were eventually told that the whole mess had been passed on to Bank of America. Six months after the 203k loan had been handed out, we were being given ultimatums by BOA to finish the work in a ridiculous small amount of time, and it was only after my wife had written a distressed email to every major executive at the company that one of them contacted her and basically said – ‘take all the time that you need.'By this stage the only thing we'd managed to do was draw up a list of things we wanted to do to the house, and what was needed (mold remediation, roof repair, new kitchen, etc) but at no stage were we told that this was written in stone. After what BOA told us we just used it as a guide, doing the essential repairs of course, but changing a few things here and there as we became more acquainted with the house and new ideas came up that improved on the old. So I put in arches where we’d never planned any at the beginning, a few art niches here and there, tray ceiling in the living room, a granite-topped bar that I custom made myself, a built-in entertainment center to save money on buying a free-standing one, a Japanese –style screen covering the skylight opening – you get the drift. There were also additional expenses we never planned on, such as spending over $1,000 to have the main concrete floor of the living area leveled when we discovered it was way too uneven for the wood flooring I’d planned for the area.Slowly but surely, over 18 months we’ve totally transformed the living areas and our children’s bedrooms, which had to be stripped back to the studs because of the mold issues. Instead of trying to spread the 31.5k over the whole house, we decided to use it mainly on the living spaces and the two bedrooms because that was where it was needed most. The point was even further emphasized to us when my wife received a small inheritance from her grandmother – we decided to double the amount we’d set aside in total to work on the house (from 40k – which included the 203k money – to 80k) bearing in mind that I’m doing just about all the work myself. By our estimates using contractors would easily be doubling or trebling this total. So you can see our point – rather than do a skim job with 31.5k on the whole house, we want to complete the job to a much better standard with considerably more money – we just wish HUD and BOA had left us alone to complete the job, to our standard, in a way that could really show what can be accomplished via the HUD scheme. But here’s the point to what you asked – we’ve NEVER been monitored through the last 18 months, no one has ever inspected our work periodically or called us to question our progress. Only since BOA gave us their ultimatum a few months ago has someone from the bank phoned once a month to cursorily check on our progress. In fact, as far as my wife and I can recall, there was never even a preliminary HUD inspection of the property done before we commenced the rehab. Also, we’ve never been told there was a prescribed list of work to complete as per the flaws in the house, and it wasn’t until last night when I did some research that I saw something to the effect that you have to apply for permission to make changes to the ‘prescribed plan’ for the renovation. All we were ever told, at the very beginning, was that HUD simply needed to know that we weren’t using the money for anything other than the house and that we needed to keep hold of all our receipts. That’s it. There’s never been any requests for ‘list of completed work’ or anything like that. No one has been around; no one has really queried our work. Zip. As for the money, you want to know what a nightmare that’s been? We thought BOA would simply cut us checks every now and then to cover out costs and as we sent in receipts. NOPE! They told us flat out they’d only cut checks twice during the project, once at the beginning (for around 13k) to cover the initial expenses we incurred to repair the roof leaks and mold remediation, while the rest we’d have to cover ourselves until the end of the project. So basically, for the last 18 months we’ve been carrying more and more on credit cards (with all that interest of course) to the point where we currently owe something like 20k on the cards, plus we’ve also paid out about another 8k from our own cash reserves. To show how committed we’ve been to the project, we would have kept on with the financial burden thrust upon us by BOA to see the whole project through to where we wanted it to be in about 12 months time. All being well with the inspection next week we’ll finally get reimbursed by BOA for all our expenses, pay off the credit cards, and complete the project under our own financial steam. But we really wanted to do it all in one hit and then have it inspected, just to thumb our noses at all the SOB’s who’ve made it all such a nightmare and to show what we’ve accomplished in spite of them, rather than because of them. Maybe, with all I’ve stated in this lengthy post , you might appreciate why we became panicky when firstly, BOA did a complete back flip on giving us carte blanch to finish the house in our own time, and instead gave us four months (after we’d argued them up from a ridiculous one month deadline) and secondly, when we were told that an inspector would be coming round and I finally found out online last night what we should have known from day one – regular inspections and dialogue, completion confirmations for various aspects of the project, compliance with an original list of work we’d vaguely drawn up when we were still feeling our way with what we wanted to do with the house and didn’t know that we could be strictly held to it – on and on. We’ve changed direction on a lot of things, all for the better of course, but never knew we were supposed to formally notify anyone of the proposed changes. So perhaps you can understand why we became so concerned, and why my wife and I virtually didn’t get any sleep last night worrying about the ramifications to all this? Could we lose the house? Will BOA call the loan on the house if the inspector states that we deviated from the ‘mission statement’ too much? Is there some kind of punitive financial punishment about to be landed on us? We’ve acted in good faith and with lofty aims through all this only to discover that we were given virtually zero guidelines on the process, have had zero oversight on our work by HUD or BOA when there apparently was supposed to be some – all by a banking system that has made the whole thing as difficult and nasty as possible. We constantly keep getting computer-generated letters from BOA calling our loan, telling us that our rehab deadline was up 12 months ago and that any money spent since then will not be reimbursed, etc, etc, and every time my distressed wife phones BOA as a result we get the regulation reply to ignore these apocalyptic notes and continue unconcerned with our work. And bear in mind that all this has been accomplished while me long-suffering family has lived in a virtual building site for the better part of two years. If anyone’s curious I’ll happily provide before and after pictures of the work I’ve done in the various rooms to show what we’ve accomplished. Everyone who’ knows what a disaster it was to start with has been very impressed. It’ll be even more impressive when we finally finish it the standard we’ve aimed for. The two bathrooms, the master suite, the Florida room, and the room that will eventually become our study have yet to really be done. We’ve just tidied them up for the HUD completion inspection and hope the guy thinks they’re acceptable, appreciates the work we’ve put in elsewhere, and realizes that the same effort will be put in with these areas, out of our own pockets. We just wish we could convince him, and HUD ,to give us another 12 months so they can really see what we want to do to the house entirely. But at the very least we just hope that they’ll give us a pass, give us our money, and let us move on.A last point to Scott – if you have experience of the process, what should we expect next week? Is it like a normal home inspection, or is the HUD inspector simply going to go over our initial proposal, look at the work that’s been done, and see if we’ve complied with it and/or confirm that all the money we’ve claimed to have been spent on the house has actually gone where it should be? I ran it all past our own home inspector, who is also a friend, and he suggested that it would be more the latter rather than the former and to simply ensure that everything looks tidy and professional and to ensure that safety issues such as smoke detectors are in place.Again, sorry for the long post



  7. #7
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    Default Re: HUD inspection pending for completed work

    Quote Originally Posted by H.G. Watson, Sr. View Post
    Sounds like you have a 203K STREAMLINE program HUD loan ($35,000 or less - no projects requiring a permit, such as changing/modifying plumbing, electrical, structural changes - moving walls, etc., minor roof repairs not reroofing, etc.).That (streamline program loans with $35K or less for projects, and no projects requiring permits for legal work)
    Based on what he described wanting to do, they would need at a minimum a plumbing permit, and probably an electrical permit too.

    Additionally, because he is in Florida, if he is not a licensed contractor he may be even more deep doo-doo acting as the owner builder - especially if he intended to use this as an investment property and sell it, lease it, or even offer it for sale or lease, within 1 year after the work is completed.

    I see fewer problems if he is going to be living in the house himself.

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
    www.AskCodeMan.com

  8. #8
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    Default Re: HUD inspection pending for completed work

    1st and foremost do not think BOA will do anything that will not be in their own self serving interest.
    2nd do not trust BOA
    Banks do not lend money to help you out of altruism, its about making a buck off of you.

    Who exactly is coming to inspect you property? BOA rep.? HUD Inspector? Considering the back and forth you have had with BOA I would ask.

    By now I would think that you have gone back and looked over your settlement paperwork.

    In your copy of the settlement and loan papers (including application) do you have a list of repairs that the loan is dedicated for?
    If you do not does BOA have the list of repairs that was part of the loan application?

    Do you have a copy of the HUD inspection that was done as part of the loan application and loan origination?

    Did you receive a copy of the appraisal of the property.
    Did the appraisal reflect the value of the property once the repairs were completed?

    You question: "...or is the HUD inspector simply going to go over our initial proposal, ...". The loan was for that proposal. They are coming to see that you are meeting the terms of the loan. And if the rest of the house is within HUD guidelines for the basics.

    You probably were led down the path you have taken by the Realtor. Uninformed and without guidance. Proverbially it sounded to good to be true. I am sure that a pretty picture was painted in the beginning.

    With the first lender being compromised, missing paperwork, a settlement officer that failed in making sure that all of the paperwork and accounting was in order, an agent that was clueless, it would seem to be prudent to get some new players on your team. Attorney and someone versed in 203K loan process that can review all of your paperwork and documentation and provide you with concrete answers and direction. direction on what to do and what not to do when dealing with BOA from this point on.

    HG Watson put you onto the typical direction that is taken. Your situation seems, from your comments, muddled.

    Find someone that is an inspector and HUD certified inspect the property and give you a consultation on what to expect.


  9. #9
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    Default Re: HUD inspection pending for completed work

    Quote Originally Posted by stephen bishop View Post
    A last point to Scott – if you have experience of the process, what should we expect next week? Is it like a normal home inspection, or is the HUD inspector simply going to go over our initial proposal, look at the work that’s been done, and see if we’ve complied with it and/or confirm that all the money we’ve claimed to have been spent on the house has actually gone where it should be? I ran it all past our own home inspector, who is also a friend, and he suggested that it would be more the latter rather than the former and to simply ensure that everything looks tidy and professional and to ensure that safety issues such as smoke detectors are in place.

    Again, sorry for the long post.
    I do not have a clue as to what you should expect... I would hope that the work that has been completed meets the HUD guidelines. You can find those online. As HG noted, it sounds like a Streamline 203k. Those can be problematic because of the lack of guidance, as you have discovered.

    BOA does not want your home, they have plenty that they already own and can't sell. You might want to locate a 203k consultant in your area to see if they can help, it might not be too late to bring one in. It won't be free, but it might save your butt!

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

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    Default Re: HUD inspection pending for completed work

    Quote Originally Posted by Scott Patterson View Post
    I do not have a clue as to what you should expect... I would hope that the work that has been completed meets the HUD guidelines. You can find those online. As HG noted, it sounds like a Streamline 203k. Those can be problematic because of the lack of guidance, as you have discovered.

    BOA does not want your home, they have plenty that they already own and can't sell. You might want to locate a 203k consultant in your area to see if they can help, it might not be too late to bring one in. It won't be free, but it might save your butt!
    As long as that "203K Consultant is ALSO a HUD approved Compliance Inspector. Not all 203K Consultants are approved/qualifed Compliance Inspectors.


  11. #11
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    Mar 2007
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    Spring Hill (Nashville), TN
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    Default Re: HUD inspection pending for completed work

    Quote Originally Posted by H.G. Watson, Sr. View Post
    As long as that "203K Consultant is ALSO a HUD approved Compliance Inspector. Not all 203K Consultants are approved/qualifed Compliance Inspectors.
    I don't think that would even come into play, but that would be for the underwriter to make the call. I'm approved for both and have never seen or been called to approve the work on a 203k loan as a compliance inspector.

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

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