<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by dwrn:
Before buying my home in central VA, I asked the contracter to include some extra features I wanted him to add to the house in the selling price. Both he and the realtor understood that buying the house was contigent upon having these extra features. He agreed, submitted a bid for my approval, and then the cost of the extra work to be done was added to the selling price. I closed on the house on 6/30/00 and he was paid up front for the work. He still hasn't done any of the work. Is this fraud? What kind of recourse do I have? Should I file a criminal complaint? The house was purchased with an FHA loan. Does this make a difference?<HR></BLOCKQUOTE>
You did this to yourself because you allowed the closing and prepayment for uncompleted work to the contractor. At closing, you should have instructed escrow to withhold the funds until the work was completed. Noncompletion of the work is not criminal but rather a civil matter. If the contractor and the FHA real estate appraiser certified that the work was done in order for the contractor to get paid the funds, that would be criminal. Double check your FHA loan to see if the appraised value was based on the improvements "as completed". Submitted fraudulent claims for payment of work not completed and/or a fraudulent appraisal could lead to sanctions, penalties and even imprisonment as a result of action taken by HUD.
