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FHA 203K - Water in the basement... what do I do?

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Mortgage and Lending with Senior Vice President, Secured Funding Corporation

FHA 203K  -  Water in the basement... what do I do?


Yesterday I had a customer submit to me a Proposal from his contractor showing work to be completed for a "wet" basement.  (keep in mind, there was no standing water even after a big rain, just moisture on the block foundation walls) [ sorry friends in the south, I know... you don't have basements].   This 'Proposal' showed detailed work to include, excavating exterior wall, re-tar exterior block wall, install exterior drain tile (fed INTO the house - sump pump... DUMB!), re-parage interior wall, install interior french drains and new sump pump.... etc.. etc...


Seems pretty cool, right?   $23,000.00!!!!   UN . REAL!

Any warranty?  sure... 1 year.

 

 


This is NUTS!  You just wouldn't believe what contractors are trying to get away with.  This basement does NOT need all this for a bit of moisture on the walls, in a vacant foreclosure home that probably has grading issues, downed gutters and nothing a nice can of drylock can't handle... WORST case, interior french drains w/ a new sump pit... Ummm... $5,000.00 or so??? 

Oh yea, with a LIFETIME warranty... that is more like it.


Here is the skinny folks:  DO THE DUE!

 


Check with your SPECIALISTS when you are vetting this out.  This particular contractor in the above proposal was a General Contractor, and was probably just marking up some specialists proposal.  GO TO THE PEOPLE THAT KNOW THE WORK.  You will get better prices, better products, better service and better results.


My advice for this client was to do nothing, extend his due diligence, do to the fact of discovering moisture, vet local waterproofing companies.  Guess what????    Saved him over $15,000.00.  ;)

 

 

 



Go out, buy houses, make them your own... MAKE EQUITY! :)


Kluge Out.

Comments (4)

Kristine Ginsberg
Elite Staging and Redesign, LLC - Short Hills, NJ
NJ Home Stager

Brent - 23,000 dollars is crazy and insulting! I'm sure your client is so grateful you stepped in and saved him a huge chunk of money! I agree, always go to a specialist (or a few) and get quotes - forget calling general contractors for the reasons you've stated.

Jun 01, 2011 12:57 AM
Paul Lesieur
203kloanmn - North Oaks, MN

Hey, you again.

Now that I know about you I always stop at your posts.

Drylock, that's good for what? I'm glad to see you recommend going beyond that clueless fix.

You give good advice in your posts.

Jun 01, 2011 01:37 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

but if we had basements they would probably be full of water

Jun 01, 2011 12:51 PM
Brent Kluge
Senior Vice President, Secured Funding Corporation - Rockville, MD
I do mortgages REALLY well and I WON'T RIP YOU OFF

Paul - :)  Thanks Paul.  I appreciate it :) 

 

Jay -  Funny!

Jun 01, 2011 11:08 PM