Consumer complaint received 2018-10-03
Company: NAVY FEDERAL CREDIT UNION
State: TX
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
Bought sight unseen before my husband was XXXX  here in Texas. We hired an inspector, who recommended hiring a structural engineer to double check foundation -- structural engineer cleared foundation stating it needed " no fixes ''. We closed XX/XX/XXXX and not even a few weeks later started to notice doors swinging open and some not locking. My husband XXXX to XXXX in XX/XX/XXXX and by XX/XX/XXXX we had an estimate by XXXX XXXX XXXX XXXX when they let us know our foundation was in horrible shape and recommended taking action against the structural engineer because the foundation didn't sink over 5 inches in even a year and was definitely in not okay shape when we bought. On XX/XX/XXXX I hired XXXX XXXX XXXX to give us a second opinion estimate about our foundation and had to bring out a plumber out the same exact time because our washing machine drain was " clogged ''. XXXX was very upset the house ever passed inspection because it is now 8.5 inches sunk over our kitchen and laundry room and this had been exacerbated by the drought, but this absolutely was in horrible shape when structural engineer came out. XXXX took me around my house and showed me places the seller tried to hide severe foundation issues -- replacing roofing shingles, putting siding over entire fireplace brick wall that is pulling away from home, placing rooking shingles and tar on foundation to cover cracks, putting 2 thin boards on top of brick column that holds up roof to make it level, cutting bottom of doors throughout the home to have them clear the tiled floor ( the estimate to fix was {$42000.00} ). The Plumbing company that came out also on XX/XX/XXXX took less than a minute to walk into my kitchen and realize it is my foundation crushing my plumbing that is causing easy blockage in the pipes, they flushed them to try and help me, but they also told me that soon the plumbing would be compromised completely ( estimate to fix is ~ {$10000.00} - {$20000.00} ). On XX/XX/XXXX I hired XXXX XXXX with XXXX XXXX, a licensed structural engineer to take a look at our house and he was furious the house ever passed ANY kind of inspection, either visual or in depth. After receiving his final report he stated that entire fireplace brick wall is a hazard and at risk of collapsing in the next few years, there are severe drainage issues throughout home, the roof distress ( hills in the roof structure ), the brick column with 2 boards holding up the corner of the front porch roof is HOLLOW which is a building code violation, front door is not parallel along with many of the doors in the house. Also, the seller 's disclosure is incorrectly filled out, which listing agent did not catch and should have seen. I called Navy Federal Credit Union on Monday, XX/XX/XXXX to discuss the issues with the transaction, the evidence of fraud and negligence that should have eliminated the property for a home loan and their only response was " it's a legal issue that doesn't deal with Navy FederaXXXX and you need to talk to the VA. '' I have been in contact with XXXX XXXX, agent at the VA Loan Guaranty Dept, for several weeks about this issue and he stated " Good afternoon XXXX, Thanks for sending these documents over. We have also requested a copy of the loan file from Navy Federal as well. As I mentioned to you when we spoke, Im not really sure how we can assist in this situation but we are willing to review the loan file and documents you have provided. It would seem that the issues on this loan should be addressed directly with either the Structural Engineer or your Realtor. '' I have already discussed this with an attorney and the structural engineer has no fiduciary duty to us because we didn't directly pay him, and I am in the middle of filing a complaint with Texas Real Estate Commission against the listing agent. 
I have also been in contact with XXXX XXXX at the Inspector General 's office and he mentioned the VA Loan Guaranty Dept should be helping in this situation and so should my bank especially when I have evidence that the home never met the Minimal Property Requirements for a VA loan. Thank you

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation