[be forewarned: this is a long explanation]

my fiance and i have been searching for a home for a year. we finally found our dream home. as we are very specific in what we wanted we were thrilled when a home matching ALL our criteria showed up on the mls.

now for the downfall: The foundation. it was obvious that the west side of the home had a drop in the foundation. the listing agent stated that "although its a minor slope, there is a structural engineer's report." we read the report which claims that "to repair the foundation would cause more harm to the home." we hired an independent inspector (we attended the inspection) and was advised to acquire a structural engineer's report. we found a reputable firm and hired them for the structural engineer's report. our engineer reported that the foundation is not acting as intended and would require repairs.

we were also given at disclosure several bids that were obtained by a prior couple who made an offer on the home but backed out. also disclosed was the inspection report from the previous offer which also stated that the foundation was not performing as intended.

during option period we filed an amendment requesting the foundation repairs. the owner has refused to make the repairs. she is standing by the original report that her agent obtained.

as a side note, our agent, two inspectors and our structural engineer have expressed that the engineer who wrote the original report is someone you would call for a 'good report'. the listing agent used him 6 years ago on this property when she sold it to the current owner -- who bought the property with the existing foundation issue.

so the deal ended. we are going FHA so the foundation must be repaired.

we are heart broken.

is there ever a time when an agent will re-evaluate a report to get a house sold?? what are the odds that someone will purchase this home as is? i guess we are having trouble walking away .. since this home is truly our dream home. can i call the owner and talk to her?

The deeper you get into a quagmire the more difficult it is to pull yourself away. With an FHA loan... you stand a large chance of putting a lot of money into the purchase of this property with never having a chance to acquire it.

With a bad foundation, FHA will not fund... but you could be out the cost of the appraisal, cost of any inspections, cost of survey, cost of credit report and application fees, and possibly other cost.... Generally if you actually see this level of problem... several you can't see also exist.....walking away is probably your best bet.

as far as fees .. our lender has been fantastic to us. we are out for the inspection, structural engineers report and option period fee. a grand total of $700.00 (no fees have been required by our lender) -- we cant afford to do this again though. another issue that has put a bad taste in our mouth of the whole home buying process. this is our first home buying experience.

im just wondering how many inspections it is going to take until the owner realizes that the foundation needs a second opinion. or will she hold out until someone, besides herself, will pay for it.

can you hear my frustration?

thanks for the reply realty. much appreciated.

Actually there is an FHA program for buying homes needing work. The repair costs are rolled in and the buyer has 6 months to have the repairs completed by a licensed contractor.

paul, i will speak to our lender about this. i had asked about other programs but he did not mention this. i will try again. thank you.

maybe called a 203k rehab with FHA, that was in NY anyway. I had one of these loans myself for a real old home I had purchased. One of the best loans I ever had....finance the repairs within the loan, and as they are completed they come out and inspect and cut you the check for you to pay the contractor...

ok. i spoke with our lender. he did say that the 203k rehab is used in NY more then any other state. i am in texas .. not common here. our lender stated that there are too many variables and issues that must perfectly align to make it happen and thought i would hate him by the time it was all said and done, but he said if i wanted he would ask around and see if anyone is doing these programs successfully. alledgedly, REI's use the program more then individuals in texas and have cash investment in the property with "as is" loan appraisals, and sometimes with 2nd liens to limit their cash investment. (i may have transcribed this convo incorrectly as it is all new to me.)

... but hes checking.

thanks recareer.

an update in the progress: i attempted to speak with the broker at the listing agent's office to discuss the possibility that the owner is being misled by the agent and the foundation should have a second look -- and he basically told me to go blank myself. stating i would have to cancel my agent agreement with our realtor before he would be able to speak with me.