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Settlement issues typical of some FHA 203k loans in Berkeley

By
Home Inspector with 203kOnLine.com, covering the USA S0289

There are a good many homes with foundation issues in the Berkeley Hills. Lots of underground streams that can affect the lay of the land under your home. The following home had lots of stettlement. A buyer purchaed the property at a "fire sale" price... way under market value for homes in the area. 

He proceeded to fix the foundation as that was his "non professional" determination as to the cause of the movement. He failed to hire an expert, and relied on his own intuition... WRONG thing to do. Once he completed his "cosmetic fix" of the foundation, he watched it break apart duing the next few weeks and put the home back on the market suggesting it was haunted to my buyer. 

When I refer to "my buyer" don't misunderstand me, I'm not a Realtor. I mean that they are my clients for the FHA 203k portion of the project and only as a consultant.

Of course we had an engineer look at the problem and found out that he was very familiar with this area, also good for the client. In any case he informed us that homes on this street (Keith BTW) were all sitting over an undergrown stream and that when anything that changed the condition of that stream would cause each house down the street to twist or move slightly.

 

203k project in Berkeley with foundation issues

 

 

 

 

This is what I saw the first time I went under this home.

It did make me wonder what would happen if an earthquake would happened while i was under the home.

It did make me a bit apprehinsive about this project.

 

 

 

 

Non FHA foundation repair, seller thought it was a haunted house

 

 

All turned out okay when I saw what the seller had done to fix the problem.

He merely added some additional "patio piers" with new uprights to catch the home as it moved to the right. 

What did we do to actually remedy the problem... the engineer told us we needed piers about 18' deep that extended below the stream's bed by about 6' then install a "grade beam" between the piers. 

This home would sit on these grade beams and the piers wouldn't be needed any longer. The piers actually had to go to a 24' depth to achieve the 6' below the steam bed. The home was then stabilized and the ghosts moved on. No more settlement once the foundation was repaired properly. 

The FHA buyer, as I recall had a home with about 50-60% equity once completed. Nice huh?





Posted by

Mike Young, 203k Team Leader    Mike ready for your 203k order

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Comments(4)

Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

I am not an expert in foundations and how they work but I can say those pics are scary.

Dec 02, 2012 12:07 AM
Mike Young
203kOnLine.com, covering the USA - Stallings, NC
FHA 203k Consultant 916-758-1809

Yes they were, particularly while under that one.

Dec 02, 2012 02:28 AM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Those are some pretty extreme photos Mike, I think you are nuts for climbing under the house my friend.

Dec 02, 2012 04:15 PM
Mike Young
203kOnLine.com, covering the USA - Stallings, NC
FHA 203k Consultant 916-758-1809

Tom, I might not have but that is our job and I got under there before I saw this. It wasn't a warm fuzzy feeling while I was under there and it didn't take long to inspect. Not very long at all as I remember.

Dec 02, 2012 04:56 PM