Initial call is totally free with no obligation. Most issues are settled at no cost.
Q: How do I fire my contractor?
A: Are you absolutely sure this is your only recourse? If so then there is a process that most lenders will require that includes:
To start the process for firing a contractor we need a letter directly from the homeowner to the contractor with the following points answered in the letter. It must be hand signed by the homeowner.
After that, the file is typically reassigned to another Draw Specialist that will work with the homeowner(s) to validate another contractor. That package will be sent to the homeowner once we have the letter as described above.
Q: I have tried to save money and do the least amount of work possible... why did it take forever for the contractor to finish my project?
A: I hear this all too often. You just created "construction issues" any time you change the scope of work. The buyer thinks they are doing themselves a service by keeping the 203k construction cost as low as possible then putting their own money into the project.
The problem with that is that the additional work they want to do with their own money gets in the way of the contractor finishing his work most of the time. This causes a rift between the borrower and the remodeling contractor because the contractor can't get his hold back till all of the work is completed. The other, and sometimes greater issue is that had they put that additional money down they might have been able to get a better, less costly loan. FHA loans have PMI (Private Mortgage Insurance) that stays with the loan for the term of the loan. A $600,000 loan amount would have an insurance premium of about $510 per month... had you used the FNMA product you would be saving that expense.
Q: Can I change the scope of work after the loan closes or is this considered construction issues?
A: The appraisal was completed based on the work being completed so you cannot just arbitrarily change that "scope of work". That doesn't pertain to upgrades or additional work above the original "scope of work". Those must be handled via the "Change Order" process but can be modifications or additions to the scope of work. We are happy to help you with our construction service and your remodeling contractor.
Q: Why didn't any of my contractors provide a bid on my project?
A: No one wants to bid against the world on any project. Most contractors don't even want to bid against more than one other contractor. Keep your mouth closed, don't let anyone think you are getting more than two bids or you may find that you don't get anyone to bid on your project.
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