If your house was determined to have an illegal room in Daly City, and are currenlty on default and might go to foreclosure. Is one liable for fees?

Asked by Pedv2, 94015 Sat Oct 23, 2010

House was purchased as-is and was found to have an illegal room by building inspector. Currenlty defaulting on mortgage and might go to foreclosure. Is one liable for the penalties? Or is there a lien on the house and the owner doesn't have to worry about the Daly City, CA going after them?

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Helen Kwong, Agent, Berkeley, CA
Sat Oct 23, 2010
Hi Pedv2,

Agent David is correct with his answer that if your property already in default, the existing illegal room when you bought it back then is the least of your worries. If you would like to know you could find out at the building dept. at your city about the permit and the code.

Since you are in default you should first talk to a real estate tax attorney who are experienced in short sale to seek his advice, because not every home owner's case is the same. You need to find out all the information, weigh out the pros and cons before you decided whether you should try to get a loan modification or should you find an experienced real estate agent to put your property on the market.

Take care.

Helen Kwong, Realtor@
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Jila Afjei, Agent, San Mateo, CA
Sat Oct 23, 2010
If you are in a position that you can not afford your home, you certainly qualify to short sale the home. This is a less damaging alternative to foreclosure and more beneficial to you. In reference to the illegal room in your home, the buyer might be able to get the cost of the modification covered by your lender who will be actually the 2nd layer seller at this point. You need a real estate agent who is well versed and experienced in short sale process.
Feel free to contact me for additional information.
Jila Afjei
Better Homes and Gardens
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David Tapper, Agent, Burlingame, CA
Sat Oct 23, 2010
If you are losing your home to foreclosure, I think this is the least of your worries. You cannot get money from someone who doesn't have any.

I cannot give you legal advice, but if you want to talk with a real estate attorney, I can refer you to someone?

Usually, if the building dept finds a home with an illegal room, they will either have you tear it down, or have you modify it so it's safe and to code, and then you pay for the permit and any other fees.

Good luck,

Cashin Company
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