I financed repairs to be done to bring my property up to standards through a XXXX loan and the contractor I chose and who was approved by the lender did not complete the work and did more damage than repairs. The lender was made aware of this XX/XX/2015. They were in control of my funds and released 1/2 of the funds to the contractor up front ; they allowed the contractor to exceed his contract due date. And, now they are saying I am in default, even though I have made all my mortgage payments. They are blaming me for the work being stopped for more than 30 days. 
In XXXX 2015, after allowing the contractor to exceed his 90 day contract, the the lender hired a HUD consultant. The HUD consultant stated that 85 % of the work was complete, regardless that it had not been completed in a workman like fashion and failed the final inspection. The lender since XX/XX/2015 insists on only allowing the remaining funds on the loan to cover a repair list provided by the same HUD consultant ; completely ignoring the bid of record which was given to the appraiser in XXXX 2015. 
They have refused to accept any other bids which now exceed the amount of funds left on the loan due to their allowing the contractor damage more than he repaired. They promised that " no matter what he does, we will get someone in there to finish, fix and repair. '' XX/XX/2015 the lender wanted me to allow the remaining loan funds be applied to the pr principle of the loan ; at the same time they were made aware that the new roof was now leaking into my brand new living room and the support beam etc. was not repaired. They have repeatedly threatened default taking their attorney 's fees out of the renovation funds as well. I have also spoken with the original appraiser and he stated not only did the ask for the appraisal and was given the report XXXX/XXXX/15, they then requested a completion inspection on XXXX/XXXX/15 ; the actual closing did not occur until XXXX/XXXX/15 and he sent correspondence asking if they were certain ; they insisted on an inspection ; he inspected and sent a report that none of the repairs had been completed. FHA and HUD have done a review at my asking ; at the time they were not aware of the appraisal issues ; but I have communicated my new findings to my contact in XXXX XXXX. The chief of HUD and the contacts at FHA have urged me to contact you and keep pursuing the issues through my attorney which is difficult because I am a single female and have limited funds ; the co-borrowers are my XXXX year old parents. 
