Help, served with Building Code Violation in Sacramento

[Jason A.]

We bought a foreclosure in 2008 in Sacramento County that had a large addition and we didn't check for permits. I know, I've learned a valuable lesson.

We were trying to refinance the property and for whatever reason the appraiser called the county and the county sent out a building inspector.

I'm completely new to the permit process and building codes, but I suspect that the addition was not built to code.

I'm trying to understand my options, but none of them sound particularly great.

I need to find a contractor to get an estimate to either demolish the structure and reduce my income producing property (5/3) down to a 3/1 which will generate rental income slightly less than the mortgage, taxes and insurance. Or bring the addition to code which I assume will mean demolish and rebuild. I'm not sure how much that might cost.

Any guesses for low end features for 800 sqft, 2 bedrooms, 2 bathrooms, family room? Any recommendations for a Sacramento contractor?

The other option we are considering is foreclosure and just walking away completely. We have about $22,000 invested in the property. Does anybody know how foreclosure might work on a house that has building code violations? Or any suggestions on how to deal with the county if we ultimately want to foreclose? I'm assuming I just stop making mortgage payments and keep the renter in as long as I can to try and recoup my $22,000.

Any recommendations for a real estate and/or foreclosure attorney that could help me?

[Bill Gulley]

I suggest you get with the inspector and see which way is best and a contract who is capable of bringing it into compliance. Most issues can be brought into complaince if it's not a totally a dangerous building.

If you do decide to walk I strongly advise you not to keep rents and not pay the mortgage. There have been prosecutions for such theft in Cali.