Should we refinance house or get a second mortgage? we have only had house for six months?

Antonia
The house settled for some reason (the weather, I don't know). There are cracks on the walls and the floors are very uneven. We have to do something or we will lose the value of the house. But we don't know how to come up with the estimated $30, 000 to fix the problem.

Brady
Most builders offer a warranty with new homes which would cover the problem you are describing. If it is a new home with a warranty, file a claim immediately before doing any work. Most warranties cover this type of defect for up to 10 years from the date of completion.If the home is over 10 years old, you should consult a structural engineer first to determine whether the settling was occurring prior to your purchase of the home, or what factors have contributed to this situation. If the selller of the property is responsible for the situation, or knew of the defect and did not disclose it, you may have a cause of action with the seller. I would suggest consulting the engineer and possibly a lawyer to discuss your situation prior to spending $30, 000 of your money.

Esperanza
Is this new? It should not settle like that. I would look at having the builder fix it.Have the foundation looked at, something must have failed down there, under the house. Your insurance actually should cover this.

Georgianna
If this is a brand new house, you need to contact the builder. It's not natural for that to happen in 6 months. The house should be under some sort of warranty and he should fix it for free. If he refuses, contact an attorney. If the house is more than 2 years old, it shouldn't be settling that much in 6 months. You need to get the opinion of a structural engineer. If you have to get a 2nd mortgage to get the $30, 000 to pay for the repairs, be sure to pay it off as soon as possible. You need to get on a written budget during this time to control your costs. Good luck!

Daina
If you've only had the house for 6 months, how much equity do you have? Did you pay a large down payment? Here's the deal. In 6 months, you have paid mostly interest. You might have paid around $50 toward principal and that's just a guess. Your house is going to appraise for around the same amount as it did when you bought it. So, unless you got a really good deal and paid less than it was worth or you put down a large down payment, you aren't going to have any equity to refinance or take out a home equity loan. Where did you get the estimate of $30, 000 to fix the house? Was it from a contractor? I'm just wondering what you are dealing with here. Is there a problem with the foundation or do the floors simply need to be redone? Are the floor joists going to have to be replaced? Can you & your husband do any of the work yourselves? Houses do settle and you might just have to live with it until you can afford to fix it. Or fix it a little at a time.