Home Buying in 34677>Question Details

New Parents, Home Buyer in 34677

Please diect us to the proper course of action on a home we just purchased and moved into in Dec. 2010. active termites and structual damage

Asked by New Parents, 34677 Tue Feb 15, 2011

.What is our best option at this point?We financed FHA

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10
Sergio Hernandez’s answer
This is probably going to come down to how much you did to assure yourself you were buying a repair free property and how much, if anything, was disclosed to you, that should have been disclosed, prior to making an offer.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Tue Feb 15, 2011
By now I’m sure you already know what you should and should not have done. Let me expand on what others have said below.
- Appraisal – the appraiser IS NOT a Wood Destroying Organisms(WDO) inspector. So he would not be liable. The most he could have done is mention “evidence of WDO may exist” or something along those lines. But that’s a judgment call. Read the appraisal and see if there is any mention of WDO or termites. If so, the lender would have requested a WDO inspection. If they didn’t, they missed it. Talk to the lender to see if there is anything that can be done.
- Home Inspection – if you did a regular home inspection, again, this would not necessarily have been detected since he is not necessarily a certified WDO inspector. He would not be liable either.
- Termite Inspection – you probably did not do this. But if you did, they definitely should have detected this problem.

You probably won’t get too far with the choices above. Even if you find that someone should have detected the problem, hiring a lawyer would probably cost you more than the problem itself. So here are some possibly more practical solutions:
- Look into refinancing into an FHA 203K rehab mortgage loan. This loan is designed to provide the financing for these kind of problems and finance it into the same mortgage. However, it may be too soon for you. Talk to your lender to see if they offer it. You may have to wait 3-6 months.
- If you don’t have the $$ to fix the damage, at least stop the bleeding – hire a pest control company that specializes in getting rid of the WDO. They will put a tent over the entire house and will spray a chemical to kill the termites. You will have to vacate your house for a few days. This will probably cost between $750-$1500 depending on the area and the size of the house. Then when you have the $$ or maybe if you qualify down the road finance the repairs.
- Talk to your insurance company – they won’t cover the repairs. This may be a long shot but they may cover your living expenses for a few days under their “loss of use” clause while the house is being treated.

At the very least, you need to find a way to treat the house and stop the termites.

Jose Morales
Florida Mortgage Coach
“We Coach You Through the Mortgage Process”
561-432-9237
info@floridamortgagecoach.com
1 vote Thank Flag Link Tue Feb 15, 2011
Did you have a termite inspection on the home prior to purchasing it? Was there any evidence of termite activity at that time? We would recommend having the home inspected by several termite companies now and if possible identify the extent of damage and how old your problem is before determining a course of action.

Because of the quickness that a termite infestation can occur, termite inspections are recommended to take place closer to the actual closing.

Your focus should be: was the seller aware of this condition before the property was sold and if you had a termite inspection, why wasn't the problem identified at that time? If you didn't have a termite inspection, did your agent make you aware of the importance of having a termite evaluation?

It may be time to contact an attorney for their input.

Good luck,

Bill
1 vote Thank Flag Link Tue Feb 15, 2011
Good inspections would have caught this, so someone did not do their job. At this point, you can only talk to an attorney to ask the right questions and see what your recourse is. we can recommend a very good real estate attorney. His name is Thomas Shea and his phone number is 813-792-0111.

Good Luck,

Bill Szydlowski
Web Reference: http://www.tampamyhome.com
1 vote Thank Flag Link Tue Feb 15, 2011
Sorry your inspections didn't reveal this damage. As an FHA buyer you were required to be given a disclosure, "For Your Protection Get an Inspection". If you chose NOT to hire an inspector then it's a shame that you opted not to pay the fee to protect your investment.

An FHA mortgage doesn't guarantee the condition of the property so this is why FHA recommends that you hire an independent inspector.

If you indeed hired a Home Inspector you may have some recourse against that home inspector--unless there was no way he could have discovered the "structural" issues you just found.

Also you may want to get a second opinion in case the professional that is advising you is incorrect in their assessment about structural damage.
1 vote Thank Flag Link Tue Feb 15, 2011
New Parents,

First, call a professional and have the damage repaired and the termites treated.

Second, check to see if there was anything you could have done to be aware of the problem.

Third, fix it, learn from it and enjoy raising your family in your new home.

Was there anything in the sellers home disclosure? How about your home inspection?

The sellers property disclosure is required and required to be accurate. Please realize that it would be possible to be unaware of the problem until the termite situation results in damage and could be difficult to say that the seller "knew". That would depend on information that I do not have.

The other protection that you have is your home inspection before closing. Did you have one done? Even if you did not contract a termite, a home inspecter should recognize termites as well as wood rot in his inspection.


Debbie Albert, PA
Keller Williams of the Treasure Coast
Web Reference: http://www.ronanddebbie.net
1 vote Thank Flag Link Tue Feb 15, 2011
Hi Again,

The FHA Inspection is done by the appraiser and it is very abbreviated and basically they just take a quick look at any visible issues, i.e. bad roof, bad plumbing, electrical wires exposed, etc.

I like the suggestion to get a 203K FHA fixer upper mortgage if you don't have any saving to make the repairs.

Wells Fargo does 203Ks and they have the best track record as far as getting the money to pay your contractors.

Good luck!

Alma

PS What did the Wood Destroying Organism WDO report say?
0 votes Thank Flag Link Tue Feb 15, 2011
New Parents,

I'm very sorry to learn of the damage to your home.

If you had an inspection for WDO try to contact the company and see what they think about the problem.

I do not expect them to remedy the problem, but if any damage was hidden they may be able to identify that.

You want to find out is this something that was un detectable or was it covered up or hidden from the next owner.

Best Wishes,
0 votes Thank Flag Link Tue Feb 15, 2011
I'm so sorry to hear about your issues, New Parents! Owning a home certainly comes with some challenges, does it not? If you financed FHA then you had to have had an FHA inspection, and I can tell you from experieince that the financing should not have been approved if there were live termites--FHA will not finance any kind of deferred maintenance (structural damage) and would have insisted on termite treatment if the WDO inspection did show any evidence.

The good news is that with an FHA mortgage, your initial costs for purchasing the home should have been close to what you would have paid to secure a rental.

Your first step should be to examine your paperwork carefully--what did the inspection say? If you did not receive a copy, your Realtor should be able to secure one for you. If you purchased directly through a seller, your options may be more difficult, but even so you should be able to see a copy of anything which you paid for, and you would have had to pay for an FHA inspection, so check with the lender.

Hope this helps, and good luck to you!
0 votes Thank Flag Link Tue Feb 15, 2011
Did you receive a copy of your appraisal.Go through it word for word.If you did get a home inspection even better.You paid these professionals to do a job because your skill set is not in this line of work.If they have overlooked this problem it needs to be addressed now.Do not wait.Both you and the lender based your decision to purchase this home from there findings.Your job was to pay them,there job is to give you an accurate report.
Good luck,
Frank j.Petracca
407-312-2994
0 votes Thank Flag Link Tue Feb 15, 2011
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