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Old 04-07-2010, 05:45 PM
 
Location: MID ATLANTIC
8,421 posts, read 21,678,253 times
Reputation: 9940

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If you are in a state that requires interest on escrows, that's probably a hefty fine from the State Regulators they just side-stepped.
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Old 04-08-2010, 10:31 AM
 
286 posts, read 1,320,423 times
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How would you know which states require interest on escrow accounts?
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Old 04-08-2010, 08:41 PM
 
Location: MID ATLANTIC
8,421 posts, read 21,678,253 times
Reputation: 9940
I'd marry Google if I could

Please see the attached (I wanted a copy for myself)
Attached Files
File Type: pdf INTEREST REQUIRMENTS STATE-2-STATE.pdf (197.5 KB, 19864 views)
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Old 05-07-2010, 06:06 PM
 
5 posts, read 9,581 times
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well been a while I've been really busy, had the bank home inspection over a month ago after having to make sooo many calls .. really never should have sweated the time i guess, because the bank takes their sweet time to get someone to come look at the finished product. as for the inspector she was blown away at the quality of my work and it didn't that i use my military "field day" experience to get the house looking immaculate.. I polished all the floors and wood work by hand and used an car buffer for a final Finnish on the floors and counter-tops ... now I'm just waiting on the bank to sent my check .. I'm not holding my breath that it will be expedited in any way.. hopefully I'll see it before Christmas
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Old 05-29-2010, 01:15 PM
 
5 posts, read 9,581 times
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case closed check came today.... never will I deal with a Bank of America 203k ever again.. if i hear of one of my friends or family doing it i will sqare kick them in the balls/baby maker.
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Old 06-12-2010, 10:32 AM
 
Location: MD
2 posts, read 5,079 times
Reputation: 11
Default I just got a FHA 203K Traditional Loan from BOA Not Streamlined

The 203K website says that contractors can receive money for special order items such as cabinets prior to install. Have anyone been successful with getting a check from BOA so that the contractor can pay for cabinets or appliances prior to installation? Also, has anyone experienced any recent problems with payment of drafts or scheduling inspector in May or June 2010? I would like to know what to expect. Thanks!
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Old 08-07-2010, 09:45 PM
 
1 posts, read 2,499 times
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Default contractor nightmare HUD 203k BofA

Thank goodness I've found this site. I've read some pretty rough stories on this thread, but maybe I can make some of you feel better! As my nightmare is just about to involve Bank of America / HUD, I'm hoping you have some tips for me as well.

Through a friend of a friend, I found a contractor who gave me an "amazing deal" on a construction bid. (Supposedly, it was a friend discount, plus they knew some subs that would do it cheap because they just needed to keep their crew working.)

The contract specifies they will replace the brick foundation with a concrete foundation. Shortly after Draw Request #1, I discover that instead, they smeared it over with a layer of concrete mortar. Conversations with the contractor go nowhere. Comments include "your foundation survived the last San Francisco earthquake -- it's fine!" and "there's no way that replacing the foundation fits within this budget."

I ask that on-site work stop while we figure this out. I am told that they'll call the crews and tell them not to come that day (it was 7:45 AM). Two days later, I discover the team there working (!?). I receive a letter giving me 48 hours to schedule a draw request. That's not in our contract, nor can I even get ahold of the inspector in that window. Then, they send me an invoice. No itemization, no receipts; just a printed form with a hand-scrawled total. It's double what I generously estimate I might owe. They give me 48 hours to pay it, and then a few days after that, they file a mechanics lien on my house. Awesome.

Since then, I've had a building inspector and structural engineer verify that the foundation was not fixed but needs fixed. I had three contractors come out to potentially bid the job. Everyone, all five, say horrible things about the work -- the carpentry, electrical, and plumbing. They were visibly upset: "disgrace to the profession," "oh, [My Name], this is just horrible work."

The HUD inspector is no help. His memory is that the contract did not include the foundation work (the first draft did not, but in the final version, it's right there on paper). His original inspection described the foundation as concrete, and he did not correct the mistake even when I alerted him. He did not notice the many construction defects and has no notes on what was paid for in Draw #1. He just wants them to get started again.

So, I have lawyered up and (depending on the legal advice) may end up firing this contractor and seeking out another one. I could figure out how to move forward if this was my money, but HUD complicates things.

Here are my HUD/BofA-related questions:

1) This bid was really low, and the contractor already drew down some of the money. So the escrow account will fall far short of covering what needs done (unless #5 below succeeds). Can I get a change order to have the escrow account pay almost solely for the roof, foundation, and siding -- allowing me to get through the rainy season intact -- and then finish the interior work on my own dime over the next, oh... 1-2 years? Or do I have to rewrite this scope so that I complete all health and safety items for this tiny sum (perhaps using magic)? If I have to finish part of the work slowly on my own, will they hold the last draw and/or contingency for that entire 1-2 years, assuming I could somehow get extensions?

2) Between lies about what work was done, inspections, liens, and finding lawyers, work has now been stopped for 20 days. How do I avoid going into default by being stopped for 30 days? Can I start doing some of the work myself to ensure this does not happen?

3) In the Rehabilitation Loan Agreement, it says that if a mechanics lien is filed, the Lender may pay or contest it after five days notice to me. Do you have any idea what would trigger BofA either to weigh in on my side or to pay the (bogus) invoice?

4) The HUD documents encourage binding arbitration. Have you had any experience with this? Do you have any insight into why this is? I've been hearing mixed advice, but mostly, people advise against arbitration. Will I get on their bad side if we avoid taking that road? (I do know lawsuits are endless hell.)

5) Do you have any thoughts about how to take advantage of this statement from the HUD Homeowner-Contractor agreement? I think the contractor is barely solvent. "If the contractor fails or neglects to carry out the terms of this contract, the Owner, after ten working day's written notice to the contractor, may terminate this Agreement. The owner may finish the job by whatever reasonable method the owner deems expedient. If the cost of completion exceeds the contract balance, the difference, as well as reasonable attorney's fees if necessary, will be paid to the owner by the contractor."

6) Can I change my inspector? Working with him has been challenging from the start, and now that I see he's not just negligent but actively opposed to protecting my rights, I'd really like to work with someone else. Is that possible?

7) Is there anyone at either HUD or Bank of America whom I could talk to about this? Should I try to? I'd like to move ahead in a responsible way and work with them, if possible. Would their lawyers ever help with #5 above? How do I keep them from paying the lien, in #3 above? I'd like to know their preferences for #1. Do you know whom I should call?

Thanks for any help you can offer, and thanks for listening to my long story.
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Old 08-08-2010, 01:23 PM
 
Location: MD
2 posts, read 5,079 times
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I just want everyone to know what happened on my first draw request, the inspector came on Wednesday, 28 July 2010. He submitted the paperwork on Thursday, July 29, 2010. I called Bank of America on Friday, July 30 to verify that they had received the draw request. They informed me that they had received the draw request. Bank of America told me that it would take 5 to 7 days to process and they could be finished as early as 5 August or as late as 9 August. I called on Monday, August 2nd and they said they were missing page 2 of the draw request. I called my inspector and asked him to resend page 2. I called on Tuesday to verify that Bank of America had received the resend of page 2. They had. I asked them would this delay processing of my draw they said that this was included in the five to seven days. I called on Wed July 4, 2010 and they gave me a tracking number and said I should receive my check on Friday, August 6, 2010. I received my check on Friday, August 6, 2010. This was pretty quick turnaround. I was pleased with the processing of my first draw. I plan to submit a new draw on Aug 16th, 2010. I will let you know how long this 2nd draw request takes.
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Old 08-09-2010, 07:55 AM
 
286 posts, read 1,320,423 times
Reputation: 152
Default Wow - it's all I can say...

Quote:
Originally Posted by vireo View Post
Thank goodness I've found this site. I've read some pretty rough stories on this thread, but maybe I can make some of you feel better! As my nightmare is just about to involve Bank of America / HUD, I'm hoping you have some tips for me as well.

Through a friend of a friend, I found a contractor who gave me an "amazing deal" on a construction bid. (Supposedly, it was a friend discount, plus they knew some subs that would do it cheap because they just needed to keep their crew working.)

Thanks for any help you can offer, and thanks for listening to my long story.
Wow - there's so many things that went wrong, I don't know where to begin. Getting yourself a lawyer was probably your best move in this case. However, I'll just say because I'm sure many people here are going to be thinking it: You get what you pay for, especially with contractors. Also, another big HUGE red flag is when you signed the final bid paperwork with your Inspector, fully knowing that items were either left out, not mentioned, or not itemized.

That being said - I don't think you're going to lose your house over this (I'm not a professional, I'm only giving my opinion). There are a handful of phone numbers and email addresses at the top of this thread - call and email all of them, somebody will help or listen to you. With so many complications, it's unlikely they will foreclose your house because of the contractor screw up. However, don't sit idle...

Yes, you can fire your contractor. It's commonly done. It takes time, but simply remind them that time is money and if they want the job, get cracking with their bid to complete the job. I also believe you can get a new inspector. You will probably have to pay a new inspector to start from the beginning (ie: a few hundred bucks), and pay the old inspector for everything s/he claims to have done. Money well spent, IMO.

That clause in your contract: "If the contractor fails or neglects to carry out the terms of this contract, the Owner, after ten working day's written notice to the contractor, may terminate this Agreement. The owner may finish the job by whatever reasonable method the owner deems expedient. If the cost of completion exceeds the contract balance, the difference, as well as reasonable attorney's fees if necessary, will be paid to the owner by the contractor." very well may be your golden ticket. Although, I wouldn't expect to see a dime out of the contractor, esp since he already has a lien on your house. Which is another thing, my contract stated they the contractor needed to sign a lien waiver at each and every inspection. If they placed a lien on my house, they would never get paid. If they sit tight for a few days, then they get paid. It's a hard concept for them to realize, I know. Silly. Why wasn't one signed? If it was, then they blatantly broke the contract.

Go get a lawyer. Armor up and protect your assets, as well as your a$$. It's your bottom line, and your house. Don't let a ******* of a contractor ruin it for you. There's a lot of legal issues in your dilemma that truly can't be answered on a forum. Good luck!!!
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Old 02-07-2011, 12:08 PM
 
2 posts, read 8,434 times
Reputation: 11
I had my final inspection and all work was completed. The bank (M&T) is still refusing to release the final payment to my contractor (about $20K) even though their own inspector said all work was completed according to the contract. M&T is not only not paying the contractor what they owe him, but they want him to do additional work that was not in the contract, in order to be "FHA compliant". Anyone dealing with M&T???? Any contact help would be greatly appreciated...
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