Arizona defective house with PMI/ foreclosure imminent

[kdog]

I'll say it again. Talk to your bank. You're not the first person with this problem.

[azdr0710]

Originally Posted by Penasco

Forgive me, but I question the spirit in which your message was sent. I hope I'm wrong. For me the bottom line is 'defective home, poor warranty laws and enforcement'.

of course I was mostly kidding....yes, you'd definitely have to disclose this if selling....I was wondering, though, if the bypass you mentioned has actually solved the problem to "code"....I don't know all the details, of course....

yes, your "defective home......." bottom line is the issue here.....I don't know all the possible remedies....sounds like you've pursued this in an effective way, so far, though

[autism360]

you need to talk to an attorney and tax advisor so you do not get stuck with an IRS bill for debt forgiveness when you walk away. You may be able to take this as an investment loss also non deficiency rules protect investors and homeowners in AZ
Kingman Winslow law firm is good

[Leaving123]

The banks have too many houses that they are holding the paper for and really want to play lets make a deal rather than get one back,Furthermore as far as the house and defects,please keep this in mind that when the housing boom was on General Contractors were pumping them out as fast as they could and many times using non english speaking labor from south of the border and let me tell you first hand that some of them could not put a round peg in a round hole much less understand
reading prints.The housing inspectors in some areas did not even come out to the site as the contractor would have to pay for the service along with that there was a shortage of inspectors so
some jobs had been given the rubber stamp of approval.
I am not saying that all of the homes had been built this way because there are some very good contractors that take pride in what they do but it sounds to me that you did not meet one!
While you have me opening up about the housing industry let me ad this,there were home appraisers that had been working with General Contractors and gave them appraisels on spec homes that the contractors had built over the actual amount of what the houses were really worth.
Then the General Contractors were taking out a bank note for that amount and every one was happy until the market fell apart and the contractors defaulted on their notes.There were so many that the banks being FDIC had the Feds come in and find this fraud and that put the final nail in the
Arizona Housing Coffin.Many have been charged,but many have not.That put the banks in a world of hurt leaving them with houses that are really worth $180,000 but they are holding a note from a
fraudulent appraisal for $300,000. Now I have heard that some banks are selling for .50 cents on the dollar trying to save something.

[MaryPa]

So what contractors are to be avoided and who are the trustworthy ones ? I plan on buying in or near Tonopah.

[Leaving123]

I will not name names as that could cause a issue for me,however I would advise you to ask the seller if it would be okay for you to hire a independent inspector for the property,also see if they would be willing to share that expense with you should you actually purchase the home.