Advice Needed, Don't Know Where To Turn

[Zoner1718]

I found this forum while doing research on a current problem I am having. Just looking for some knowledgeable advice. I will try to be brief but it is a long story. I live in a Manufactured home built in 2003 by a manufacturer that is no longer in business. It was installed in 2004 by a local home developer, who is also out of business. It was converted to real estate in 2006 when the original homeowner bought it. We purchased it in 2008, it is on a full basement with cinder block walls. Our original loan was an FHA loan with "Bank A", they also no longer exist. After 9 nine months our loan was transferred to "Bank B" as an FHA loan. And five years ago I refinanced (FHA streamlined to "Bank C") for a lower interest rate. Fast forward to today I am trying to refinance (FHA) to do some improvements (our asphalt driveway is in bad need of repaving). Bank C started asking about the Engineer Certification that the home met PFGMH standards. They are questioning the Garage that was there when I bought the home, the front porch that is part of the home itself (in the floor plans and transported along with that half of the house), and the deck I built out back (which is free standing on it's own foundation not imparting any load on the home). I had never even heard of the PFGMH until they started asking. I have done a ton of research and digging. I have filed a FOIA request with HUD for the original document. In my research I found this article - https://criteriumincincinnati.wordpress.com/2011/01/30/general-guidance-and-anchoring-system-options-for-manufactured-and-modular-home-with-perimeter-support-foundations-rev/
And now I am of the belief that either a certification was never done, or if it was that it was fraudulent. Because after reading the above article it is evident that my home is NOT anchored to the foundation at all! We have been relying on gravity and friction to keep my family safe! I can give more details if you would like but for the purposes of keeping this brief I will stop there.
So here is my dilemma, I probably need to pay an engineer to tell me what needs fixed, pay to get it fixed, and then pay the engineer again to certify it. The rebar is present in the pilasters but was never bent over and welded to the foundation beams. The house beams are not anchored to the foundation beams. And there is no perimeter bolts or anchors. My question is how could I have ever had a FHA loan in the first place in 2008 if this was not correct? And who does that liability fall back on? Original Mortgagee? Title insurance? FHA? I don't know where to turn or what to do, but I feel that this certainly is not just or fair. I basically have a $130,000 house that is not safe and is worthless at this point. I can't sell it, I can't refinance it, I am pretty much stuck. All because of something that should have been addressed with the first FHA mortgage. Any advice you can give me would be helpful, have you ever seen or heard of a situation like this? Thank you for your time reading this.

 

[Jerry Bone Jr]

Caveat emptor is a Latin term that means "let the buyer beware."

 

[Artemis Fowl]

Did you have an inspection prior to closing?

 

[Meandering]

I found this forum while doing research on a current problem I am having. Just looking for some knowledgeable advice. I will try to be brief but it is a long story. I live in a Manufactured home built in 2003 by a manufacturer that is no longer in business. It was installed in 2004 by a local home developer, who is also out of business. It was converted to real estate in 2006 when the original homeowner bought it. We purchased it in 2008, it is on a full basement with cinder block walls. Our original loan was an FHA loan with "Bank A", they also no longer exist. After 9 nine months our loan was transferred to "Bank B" as an FHA loan. And five years ago I refinanced (FHA streamlined to "Bank C") for a lower interest rate. Fast forward to today I am trying to refinance (FHA) to do some improvements (our asphalt driveway is in bad need of repaving). Bank C started asking about the Engineer Certification that the home met PFGMH standards. They are questioning the Garage that was there when I bought the home, the front porch that is part of the home itself (in the floor plans and transported along with that half of the house), and the deck I built out back (which is free standing on it's own foundation not imparting any load on the home). I had never even heard of the PFGMH until they started asking. I have done a ton of research and digging. I have filed a FOIA request with HUD for the original document. In my research I found this article - https://criteriumincincinnati.wordpress.com/2011/01/30/general-guidance-and-anchoring-system-options-for-manufactured-and-modular-home-with-perimeter-support-foundations-rev/
And now I am of the belief that either a certification was never done, or if it was that it was fraudulent. Because after reading the above article it is evident that my home is NOT anchored to the foundation at all! We have been relying on gravity and friction to keep my family safe! I can give more details if you would like but for the purposes of keeping this brief I will stop there.
So here is my dilemma, I probably need to pay an engineer to tell me what needs fixed, pay to get it fixed, and then pay the engineer again to certify it. The rebar is present in the pilasters but was never bent over and welded to the foundation beams. The house beams are not anchored to the foundation beams. And there is no perimeter bolts or anchors. My question is how could I have ever had a FHA loan in the first place in 2008 if this was not correct? And who does that liability fall back on? Original Mortgagee? Title insurance? FHA? I don't know where to turn or what to do, but I feel that this certainly is not just or fair. I basically have a $130,000 house that is not safe and is worthless at this point. I can't sell it, I can't refinance it, I am pretty much stuck. All because of something that should have been addressed with the first FHA mortgage. Any advice you can give me would be helpful, have you ever seen or heard of a situation like this? Thank you for your time reading this.

You are confusing two things.
1. The ability to buy/sell and occupy,
2. The ability to mortgage.

If the municipality where your property is located, does not require engineering certs or any of the paperwork required by FHA to secure the manufactured home to the foundation, then your home is not "worthless" you can sell it, other people can occupy it, And I'm very sure it is being taxed that way.

So on the ability to mortgage, start with,
the salesperson who "pitched" it to you. Did they disclose that your purchase would not be finance-able?
Did the seller's disclosure notify you that the home was not secured to the foundation?
Did your home inspector report that the structure was not secured to the foundation?
Did you even look at, or inspect it your self, or have any knowledge about manufactured homes before you bought it?

As far as FHA loans, up until a little more that a year or two ago, Lenders were supposed to disclose to appraisers all what they knew about the property prior to the appraiser appraising the home. So, did you or your agent, or your closing attorney notify the lender that what you were buying was a manufactured home with the correct make and model?

Also,
Do not confuse yourself with believing that a manufactured home can be used as a revolving credit card to refinance out equity every few years like it was a stick built home.

If you confuse your ability to borrow against an owner of a stick built home, years down the road, you are going to be very, very upset.

.
.

 

[Zoner1718]

According to FHA the engineer report has been required on all loans since 1996. It is required to be in the insuring binder sent to FHA when the loan is originated. I had no prior knowledge going into the home purchase so i get the buyer beware comment. I appreciate the revolving credit advise as well. But it seems some of you missed the point. The engineering cert is a requirement. FHA can't seem to find the original. Just trying to track down who would be liable in the chain. To even be approved for FHA in the first place it had to done or implied. It seems someone committed an act of fraud if they represented false info. Just trying to figure out who that falls back on. I did not misrepresent anything, I simply went by what I was told (that everything was correct and in place) and believed as such since the requirements to get the loan to begin with had to be met.

 

[Tru Red]

Just thinking out loud here after reading this post. Wondering if the author is looking to place blame on the appraiser? One should be reminded the job of an appraiser is to provide an opinion of value for a specific date.

 

[Meandering]

According to FHA the engineer report has been required on all loans since 1996. It is required to be in the insuring binder sent to FHA when the loan is originated. I had no prior knowledge going into the home purchase so i get the buyer beware comment. I appreciate the revolving credit advise as well. But it seems some of you missed the point. The engineering cert is a requirement. FHA can't seem to find the original. Just trying to track down who would be liable in the chain. To even be approved for FHA in the first place it had to done or implied. It seems someone committed an act of fraud if they represented false info. Just trying to figure out who that falls back on. I did not misrepresent anything, I simply went by what I was told (that everything was correct and in place) and believed as such since the requirements to get the loan to begin with had to be met.

I'd say, who is liable, is the people who sold it to you, as if you could finance it along with the people who sold it, without disclosing it could not be financed.

That's where you start, because obviously you did not have the money to buy it in the first place.

and know that as appraisers, we are aware, why this is where you are asking, and not asking your attorney.


.

 

[Meandering]

According to FHA the engineer report has been required on all loans since 1996. It is required to be in the insuring binder sent to FHA when the loan is originated. I had no prior knowledge going into the home purchase so i get the buyer beware comment. I appreciate the revolving credit advise as well. But it seems some of you missed the point. The engineering cert is a requirement. FHA can't seem to find the original. Just trying to track down who would be liable in the chain. To even be approved for FHA in the first place it had to done or implied. It seems someone committed an act of fraud if they represented false info. Just trying to figure out who that falls back on. I did not misrepresent anything, I simply went by what I was told (that everything was correct and in place) and believed as such since the requirements to get the loan to begin with had to be met.

And you know, well, if you bought it before 2008

I wouldn't expect anyone to be able to "find" any paperwork now.

Start with your agent and the seller, and work up the line.

.

 

[Zoner1718]

Sorry, for sure not thinking any appraiser is at fault in any way. I know you guys aren't engineers, just seeking any advice from those that will be more knowledgeable than myself. And I have contacted an attorney, just looking to educate myself on more of the ins and outs of the industry. This forum has been helpful and all opinions count. Thanks so far and I look forward to any other input.

 

[Meandering]

To the OP,

Here is the thing.

You agreed to purchase your home at a price, you negotiated with the seller.

Your agent had every responsibility to look out for your interests in that negotiation, including your ability to purchase the home.

Apparently that did not happen, or the seller hid, or did not disclose, important information from/to you.

All else,:
Home inspection,
Appraisal,
Mortgaging
Happens AFTER you and the agents contract to buy.

Start at the beginning. where was the seller's disclosure? And, did YOU sign the seller's disclosure as acceptable????

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