Consumer complaint received 2016-08-10
Company: Guild Mortgage Company LLC
State: TX
Product: Mortgage
Sub-product: FHA mortgage
Issue: Settlement process and costs

Complaint:
I purchased a home under the impression that an FHA Loan has certain criteria in regards to the condition of the home before they may lend money out on it. I was told that it would be the seller 's responsibility to bring the house " up to code '' before the mortgage company could release funding to me. I do not fully understand, personally, what all the codes are. I have the statement from the appraiser and the mortgage company saying that everything thing was fine, no repairs were needed, and that it was approved for the loan to go through. There is a great deal wrong with the house. It does n't seem to be up to code on anything. It was appraised too high, and no repairs were made. Someone had to commit some level of fraud for this deal to even go through. On the paperwork it is stated that the house is sold " as is '', but this is not a standard conventional loan- it is an FHA loan. It is my belief that no one inspected or appraised the house- I do n't think anyone even looked at it. They just signed papers and pushed the deal through. I am the victim of fraud. I am left dealing with termites, improper unsafe electrical hook ups, too low of a crawl space, plumbing, outdated and improperly installed septic, warped flooring, etc. What does " up to code '' mean exactly, and since this is an FHA loan, who is responsible for putting this loan through without so much as viewing or acknowledging the needed repairs? I signed to pay over XXXX dollars for a falling down house that probably is n't worth half that much. It is out in the country, XXXX sq. feet, it has an easement for a driveway, has a septic too old, too small, and literally XXXX feet from the house. The electric wires hang from a window near the kitchen and almost touches the ground, and the electric box just looks plain weird. A neighbor had some work done on his house and the electrician happened to notice my set up. He made the statement that if I ever had to have my power turned off, they would not turn it back on until I brought all the the wiring " up to code ''. You see, I am the consumer who trusted the professionals that said- everything was fine. My inspector was worthless- paid him XXXX, and he failed to discover the hoards of termites under the house. There is more, but first I need to know if anything can be done about this? What steps do I take to start the process? I have spent all my money on repairs- ie XXXX dollars to the termite guy, etc. I do n't have money, but I need help. How can anyone do this to someone? I have not missed a mortgage payment either! I do n't know if there is a staue of limitations or not, but XXXX XXXX, 2015 was our closing date. I am only just now contacting you because I did n't know until just a few days ago that there might be some help for a situation like mine. Still making payments- but I am definitely making payments to crooks. I have not contacted the mortgage company because they are the ones who lied, cheated me, and apparently committed fraud to begin with. How can I be expected to trust them? Please respond asap. I appreciate any help you can offer!

Company response to consumer: Closed with explanation