Why did you think you could add an extension without prior approval? You will have to make the changes since 203K mortgage do not pay for changes to be taken down if they do not increase the value of the home.
Best contact city resolve those issues
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
I'm sorry to have to add to your problems but I think it's time for some tough love.
The problem is not with the building department. Building department inspectors do not create the building codes they just enforce them. The codes are designed to provide a standard method of construction with the objective of creating a safe building. We are all aware of the nightmarish stories of contractors(building, plumbing, electrical, etc.) coming in and doing substandard work which create safety issues. Following a process of getting a permit, having inspections and getting a final certificate of occupancy at the very least provides a measure of security that the job has been done correctly(to code) and that the likelihood of a dangerous condition existing is diminished.
Many homeowners believe that by circumventing these safeguards they can save on taxes, avoid the additional cost of getting permits and hire contractors that are willing to work at a steep discount. To that I say "penny wise and pound foolish". You and prior owners of the property seem to have followed this ideology and now you want to blame it on the building department inspectors who are just doing their job.
But, Jermaine, they are not your only problem. The banks and FHA/HUD are also unwilling to take on this risk and that is one of the reasons that appraisers are hired. As a certified residential appraiser my job is not only to determine the value of the property, I am also the eyes and ears of the lender when I come in to inspect your property. If I come into your home and notice that there is an extension which does not appear in the city records I will question you about it. If I determine that your house is valued properly for the mortgage but you don't have a certificate of occupancy for the extension or other work that seems improper or illegal( such as a basement apartment) I will complete my report but make the closing subject to a Certificate of Occupancy or correction of any improper work.
If you purchased your home with obvious illegal features but these features were what you were looking for you should have at least been told by your home inspector that there were obvious violations, and/or the appraisal should have alerted the bank to obvious(appraisers are not home inspectors) irregularities, and/or your attorney should have questioned and advised you of the risks associated with buying buildings that do not have all their certificates in order. At this point in time it is too late to say that the problem is because of the building department. You and prior owners have created the problem and you must now correct it and not pass it on to the next buyer.
However, if you find someone who is willing to buy the property and make the improvements(which must be done before a mortgage will be approved), then that person can apply for an FHA 203K mortgage which will include the amount of the financing for the purchase and the cost of construction for making the repairs. The house will still have to appraise for the financing, construction and any concessions that may be included. If this cannot be done then you will either have to lower your price or do the work yourself. Good luck Jermaine.
Century21 Yve R.E.
Licensed R.E. Agent
NYS Certified Residential Appraiser
The moral of the story is fix it and sell near market or discount the heck out of it because it takes a special person to purchase a property knowing that they will have to deal with the local government before they buy the house.
The answer is yes and no. If you accept Robin's scenario that the buyer is deaf and blind and either has no attorney or a deaf and blind attorney who forgets to order a title and lien search then the answer may be yes. However under usual circumstances and if a mortgage is involved then the answer is no. Your attorney will help you determine the best way to cure the problem.
If you are to receive proceeds from the sale then an amount might be able to be held in escrow to pay for curing the violation. However it is best that you try and get the violation removed prior to the sale if you are able to do so. Speak to your attorney!
Century21 Yve R.E.
Licensed R.E. Agent.
NYS Certified Residential Appraiser.
Here are a few posts that may be helpful:
3 Things You MUST Do To Get Your Albatross To Land Successfullyâ€¦
The Good, the Bad and the Ugly â€“ 3 CRITICAL Things To Know About Flips
You TOO Can Purchase A Ticking Time Bomb! One Easy Step!
(Remodeling Without Permits - Part #1)
What Might Your Next Home Purchase Have In Common With The Titanic? 7 Key Recommendations
(Remodeling Without Permits - Part #2)
If they are planning on a conventional loan, I am not sure if you will find anyone who will go with one of the out-of-town lenders that does not ask for municipals, and may not pick up the violation. THe next thing, however, is to find a person who is using a lawyer who will not order a title report with a building and violations search, and will allow his client to close that way. What is involved in fixing the violation?