Home Buying in 75034>Question Details

Shilpa M, Other/Just Looking in 75024

How to buy structural/foundation warranty for bank owned foreclosed house(new built in 2008)?

Asked by Shilpa M, 75024 Mon Mar 23, 2009

We are looking into a foreclosed(by builder), never been lived ,new 2008 built house in Dallas Frisco,area.However, there is no home and strutural warranty.Can you pelase provide us some links to shop around for Structural/Foundation warranty for house.

Thanks Shilpa

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Our recommendation is to contact the builder directly to inquire about their builder's warranty program. If they do not offer one, consider asking if they allow buyers of "foreclosed" properties to purchase or extend the builder's warranty.

The next best thing is to go the route of identifying an independent company to purchase a program from them.

Good luck
0 votes Thank Flag Link Tue Mar 24, 2009
Hello Shilpa,

There was one company that did offer foundation warranties on existing homes for awhile. There name was Cable Lock Safeguard. They have since stopped the program, rather abruptly also. Since that time I have not heard of another that would take the specific risks on foundations.

The Texas Real Estate Commission (TREC) controls licensing of warranty companies in Texas. This would include all aspects of a home. The warranty companies are called Residential Service Companies and a list of licensed companies can be found on TREC's page:

http://www.trec.state.tx.us/licenses/rsc_licensed.asp

You can try calling these companies and see if any will provide a structural/foundation only warranty. If I can be of service in any way please don't hesitate to contact me.

Emmanuel J. Scanlan
PS Inspection & Property Services LLC
http://www.psinspection.com
214-418-4366 (cell)
TREC License # 7593
International Code Council, Residential Combination Inspector #5247015-R5 (Electrical, Mechanical, Plumbing and Building)
Texas Residential Construction Commission, Third Party Warranty Inspector #1593
Texas Residential Construction Commission, Inspector, County Inspection Program
Texas Department Of Insurance, VIP Inspector # 08507061016
Hayman Residential Engineering Services, Field Technician
CMC Energy - Certified Energy Auditor

Knowledge is power, but sharing knowledge brings peace!!
Web Reference: http://www.psinspection.com
0 votes Thank Flag Link Tue Mar 24, 2009
Contrary to what Lynn said: NOTE: There is not a company who will insure foundation unless they did the construction work.

------------------------------

There are companies that warrant the structure and foundation. They will be considered a 3rd party to the transaction and builders use them all the time when they are about to close their doors so the owners are not left stranded. These warranty companies require that the builders build up to certain specifications.

However, as Rob said, a foreclosure will void that warranty.

So Shilpa, check what stage the home was in when it was foreclosed. Did it have final city inspection? If the listing agent doesn't know, the city will have a record of it. The City of Frisco will keep the documentation.

I think I know the builder & community you are buying from. They were very quality minded. Get a good home inspection done and if you have concerns about the foundation, get a structural engineer to examine it.

Naima
214-289-8555
Naima@Sumner-Realty.com
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Tue Mar 24, 2009
Shilpa,

Unfortunately I have not heard of anyone warranting foundations unless they did the work or repair... this is exactly why foreclosures are not always the best deals.. you definitely are stuck w/ what you get for the most part. Sorry to be the bearer of bad news.

There is one possibility and that is to see if perhaps another builder will be buying up this current builder's business.. then there may be a way for you to have a warranty.

God Bless,
Josh
Web Reference: http://www.eXposedHomes.com
0 votes Thank Flag Link Mon Mar 23, 2009
Foreclosure will void any warranty. Home Service Contracts (Home warranty's) don't cover foundation. If you feel there is a foundation problem be wary of the home especially if it's brand new.
Web Reference: http://www.robpurifoy.info
0 votes Thank Flag Link Mon Mar 23, 2009
Thank you for your answer, Lynn.

The builder went bankrupt and the house is with Bank now and it doesn't have home warranty and 10 year Foundation/Structural warranty.So, I was wondering , if we can purchase for 10 year structural/foundation warranty?
0 votes Thank Flag Link Mon Mar 23, 2009
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