Remodel & Renovate in 37421>Question Details

Ann, Home Owner in 37421

We brought a house in May with a 203 K rehab loan. Our contractor went over the deadline and now refusing to meet with us and finished the house.

Asked by Ann, 37421 Mon Dec 6, 2010

The bank want help us.What should we do?

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10
I used the company South Serve to rehab my home after major storm damage. You can find the company at http://www.southserve.com
0 votes Thank Flag Link Thu Jan 10, 2013
We have in the past bailed out customers like yourself. Like paul said look for a local contractor who does 203ks and talk with him. Also get everyone in the process involved. If you have a good team of people someone will step up and help you out. I dont know what state you are in but feel free to contact me if you are in illinois. dennis@khrenovations.com
0 votes Thank Flag Link Sat Dec 11, 2010
Hi Ann,

Sorry to hear about you problem with your contractor. HUD requires the consumer to be responsible for selecting the contractor. Hopefully consumers select the most knowledgeable experience contractors who can verify their understanding of the 203k. We recommend you to choose a Certified 203k Contractor whose knowledge and understanding of the 203k program can be verified. We recommend to change contractors at this point, but only upon approval from your lender. There is no reason to fire your existing contractor if your lender will not allow you to use another one. You may go to http://203kcontractors.com to find the Certified 203k Contractors, who have been properly educated on the 203k. You may contact us if you have any questions, comments, or concerns. We are always happy to help.

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203kcontractors.com®
Contractor Directory for the FHA 203k program
480.463.4663
Web Reference: http://203kcontractors.com
0 votes Thank Flag Link Fri Dec 10, 2010
I would contact a real estate attorney. Get your options and act immediately. Sorry you are having a hard time.
0 votes Thank Flag Link Tue Dec 7, 2010
If they are refusing to meet with you, an attorney's call does wonders. I would not hesitate to talk to a construction oriented attorney and get their opinion. It is necessary to show the contractor that you mean business. If you get to talk to the contractor make sure you express your willingness to take the negotiations to the next level.
0 votes Thank Flag Link Mon Dec 6, 2010
Call an attorney immediately!
0 votes Thank Flag Link Mon Dec 6, 2010
Most 203k servicers allow you to change contractors if needed, although that would be a last resort to working things out with the existing contractor. So you need to have a conversation with your draw specialist to discuss those options. You might also want to check to see if a contingency reserve was set up in your loan in case you need to go over the original budget for cost overruns or unexpected items. If you have to go with another contractor, there will be paperwork for them to complete to get approved with the servicer. So make sure the new contractor understands that time is of the essence. Good luck. These things can be worked out.
0 votes Thank Flag Link Mon Dec 6, 2010
Hi Ann - sorry you're having these challenges. Definitely a meeting with your buyer's agent and your FHA Consultant - is that Delmus Aubrey? Also, a good idea after you gather that information from the buyer's agent and FHA consultant, ask your mortgage company what your loan options are. Then perhaps one more contact with that contractor - something in writing, return receipt requested. Then definitely an attorney. Best luck! Christina
Web Reference: http://Christina-Holmes.com
0 votes Thank Flag Link Mon Dec 6, 2010
Ann unfortanately the bank does not oversee the contractor but does oversee the ability to pay them. At this point you need to replace them, go back to your buyer agent and ask them for assistance, perhps they know a contractor who can come in to finish the job. You may want to visit a lawyer to review your case, most have the first meeting free so you can get some direction. Make sure you take pictures of everything and make lots of notes of what is and what is not done.
0 votes Thank Flag Link Mon Dec 6, 2010
Without many details--at this point you may wish to consult with an attorney who specializes in real estate, and see what options you may have.
0 votes Thank Flag Link Mon Dec 6, 2010
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