Consumer complaint received 2018-11-20
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: AMERICAN NEIGHBORHOOD MORTGAGE (NJ)

I purchased a home on XX/XX/2018, with XXXX XXXX XXXX XXXX  ( XXXX ) in XXXX XXXX, New Jersey. The home was purchased with a XXXX Loan. The Loan product was presented to me as one that would allow for me, a first time home buyer, to purchase a property and have all necessary repairs completed and violations fixed through this transaction. 

XXXX was aware of violations/repairs needed on the property and referred me to a consultant/home inspector in XX/XX/2018 who was supposed to identify all repairs necessary to meet HUD minimum standards and obtain a Certificate of Occupancy with my local municipality. 

The inspector/consultant, XXXX XXXX XXXX, sent 2 inspectors to the home in XX/XX/2018. XXXX XXXX, personally, did not visit the property until XX/XX/2018, over a month after we closed on the property. At the time of the visit, XXXX XXXX stated that he would compile a new list of repairs needed as well as adjust the list that we went to close with. XXXX   XXXX advised that XXXX would not allow this. 

The original Work Write-Up, prepared by XXXX XXXX, that the property went to close with ( valued at {$74.00}, XXXX ) was reviewed by XXXX, underwriters at XXXX, and the appraiser, XXXX XXXX XXXX, prior to close. XXXX certified that once the work identified in this Write-Up was completed, the property would meet HUD minimum standards. 

After I closed on the property and began to settle in as the homeowner, I started to realize that the repairs identified in this Write-Up were inaccurate. 

As of XX/XX/2018, no repairs have been completed. 

In XX/XX/2018, at the request of XXXX, I reached out to city and state inspectors in order to have them complete inspection reports that would identify violations. The State of New Jersey has scheduled a re-inspection for XX/XX/2018. On XX/XX/2018, the city of XXXX issued a vacate order on the property. I was required to vacate all tenants from the property. 

The property is now without tenants, which means that rents are not being collected. I am also out of work as a result of all of the issues with the purchase. 

XXXX continued to stall and would not allow for me to do a change order or adjust the Work Write-Up. As such, in XX/XX/2018, I found another XXXX Consultant ( XXXX XXXX ) to come to the property in order to complete an inspection as well as integrate all of the reports given by the state and city. I shared this with XXXX and they also agreed that XXXX  XXXX was not willing to communicate in order to resolve the repair of the property. XXXX then retained a new XXXX Consultant, XXXX XXXX. I canceled my inspection with XXXX after XXXX advised that XXXX, an expert, was best suited to complete a new report. XXXX was not allowed to speak directly to me after his inspection but was able to complete a new write-up in XX/XX/2018, that incorporated the city and state violations. XXXX 's bid came in at {$130.00}, XXXX. This number includes a 10 % contingency. XXXX advised that I should allow contractors to bid on XXXX 's Write-up. After I was able to secure a contractor, XXXX stated that they would offer a credit to cover the shortfall and once an estimate was received, they would identify a dollar amount. 

Upon my meeting with over 35 contractors and gaining more knowledge/experience with the property, I learned that repairs that are required by HUD, state or local municipalities were not included in XXXX 's report. After I shared this with XXXX, they advised that I get another opinion by a qualified professional. I retained the services of XXXX XXXX, the same XXXX Consultant that I canceled with in XX/XX/XXXX. XXXX completed his XXXX XXXX. XXXX 's bid came in at {$330000.00}. This number also contains a 10 % contingency. 

Out of all of the contractors that I've met with, only XXXX have returned bids. I believe that is because XXXX has worked with contractors behind my back in order to stall the project. They did this with the contractor that I went to close with and sabotaged his bid process back in XX/XX/XXXX and XX/XX/2018. As of XX/XX/2018 the bid estimates are as follows : Contractor 1 : {$400000.00} ; Contractor 2 : {$250000.00} ; Contractor 3 : XXXX. All of these bids are considerably higher than the report produced by XXXX via XXXX XXXX. It shows that the prices that XXXX quoted are not reasonable for the project. 

After Battles ' report was shared with XXXX, they determined that new material would allow them to renege on the promise of offering a credit for the shortfall. They claimed that I did not share violations with XXXX  and because they were not aware of these code violations prior to the closing of my loan, they would not be offering any additional monies or credits toward the project. 

I responded to XXXX with proof that their office was aware of the repairs prior to close and they followed up, asking if I could provide a time stamp as to when it was reviewed by members of their team. This back and forth strong-arming approach is the reason that I am writing this complaint. 

We are currently at a stand-still until XXXX reviews further evidence. 

However, as XXXX takes their time to review evidence, I am currently without a suitable home. The home with without heat and the moving of the tenants has caused rodents to appear. 

XXXX continues to give insufficient responses and deny a solution from being reached. Still outstanding are the following questions which I sent to XXXX : 1. Who are you expecting to cover the gap AND the shortfall? 
2. In addition to the shortfall, how much of a credit can XXXX XXXX give to a contractors bid? ( Be reminded of lender responsibility and know that XXXX prices are not reasonable. ) 3. If XXXX is still not willing to own their mistakes and operate in good faith, what is the path forward? Some questions include : a. What will happen with the XXXX in escrow? 
b. What, in terms of documentation, is needed to access the funds? What does an acceptable bid need to reflect? Specifically, please address pricing of each line item. 
c. Who will be the consultant on file? 
d. What SOR is the one the lender is requiring be used? 
e. What repairs do you/ANMAC or the lender consider to be part of the program? What repairs become mandatory? 
f. What will be the result of not securing a contractor or losing the one I have secured because of these issues and/or an ANMAC lack of forthrightness? 
g. How will draws be administered? Who will do inspections? 
h. What forms have been and will need to be submitted to HUD and FHA? When will they be submitted? 

XXXX XXXX XXXX XXXX  in XXXX XXXX, New Jersey, has been less than professional or ethical. They presented a product that they are not willing to use correctly. They altered documents that I signed and have lied in order to cover their missteps. They have not owned any wrong in this transaction.