Help! Building Shut Down

[Sabina Hasan]

I purchased an FHA mult family a few months ago. I have not been able to move in due to contractor delays. The building inspector came and recently shut the building down for health/safety reasons by turning off all the gas to each unit. I had a HUD consultant do a hud inspection for the FHA 203K, the plan was to move in with my family and child. HUD consultant stated that it was safe for me and my family to live in the property. I did not move in because of contractors coming in and out. The HUD consultant saw the whole property and from what he had saw, it was deemed safe. The building inspector did not deem it to be safe from what was visible, same visibility as the Hud consultant. He found more rotten beams, mechanical issues with the heating, the pipes to the water heater was hazardous and can cause leaks. I received nothing in writing and they shut off the heating to me and my tenants. There is at least 50 grand of work or more in this property now. I can't live there and I can no longer afford to pay. I was told by the mortgage lender that I didn't need a regular home inspections because the HUD inspector does the same thing and that's why I am paying $700 for the inspection.

What are my options? How is ethical for the HUD inspector and bank to do this? I know I am wrong by not doing my own inspection and I shouldn't have been swayed that way. The place is unsafe to live in, What makes it right for HUD to approve and say it is safe? Can I SUE HUD? What do I do? I can't afford this and everything I worked hard for will now be ruined. I had a perfect credit score of 780, it's all gone now. Are there any good lawyers for this?

[Greg H.]

Sorry to hear about your situation.  However, you are dealing with several that really have nothing to do with each other

Hud Consultant- Has nothing to do with HUD. He is not an employee nor a contractor for Hud. He makes recommendations to navigate the 203K process and is NOT a substitute for an inspector. You not doubt signed several forms absolving him from any liability

Lender- Can you prove the lender said "you do not need an inspection" ?  This may be your only avenue for a complaint.  Lenders do not ever see the property nor guarantee the condition

City Inspector- They can shut down any property and any time for code violations.  Basically, you can find violations with all houses if you look hard enough.  The inspector needs to become your new best friend.  I would set up a meeting and explain your situation.  Bring some cookies or breakfast tacos and be kind and polite......very polite.  Try to work out a solution as the city inspector controls your destiny at this point.  IF you walk in there angry and demanding and threatening to sue somebody this will not end well for you