April 25th 2012 my son bought a foreclosed property and was given a Home Warrany program from Freddie Mac at a taxpayers cost of $1078.00 dollars for a 2 year coverage.
Home warrany was offered to give peace of mind to my son for buying a foreclosed home in which he has no way of knowing how any of the systems were maintained as there is now seller to discuss this with.
My son followed the advice of this real estate agent and paid for a home inspection for all systems. All systems were working but were to be deemed near the end of their expected life.
Within a couple of weeks the furnace was not working nor the central air. Home warranty number was called and a technician was sent out by the home warrany company.
A report came back from the home warranty that due to units being improperly installed the repairs needed would not be covered. We emailed the home inspection to the home warranty company to show the units were working and no report of improper installation.
Air Excellance the heating and cooling company sent out to service the problem left without stating what was wrong other than it is an electrical problem. When the tech was asked if he was going to repair it the techs response was he was only there to write up the problem and until the company ok's the repair nothing will be done.
The next day my son found out the home warranty would not cover the systems and emailed him a report with over 5 differant problems related to why the furnace & central units were not working. The report also said that all conditions had to have existed prior to buying the home and before the home warranty contract was activated.
The home warranty company would not accept the home inspectors report on the systems because the serial and model numbers were not on the report ( the systems were over 15 years old and the numbers were no longer on the unit or had worn off.
I ended up calling the heating and cooling company to find out why the technician sited over 5 differant problems and even one that was on the unit that we had not even called him about the customer service rep hung up on me and told me not to call the company back that the report was sent to the home warrany company if I needed any further information
Since the weather was warming up my son called another heating and cooling and the tech from this company found only one problem that matched Air Excellance diagnosis a blown fuse, REALLY!
Crystal Heating and Cooling found no proper installation, no water damage, nothing the previous owners did to cause the problem, normal wear and tear after years of use. A cost of $303.00 dollars which $175.00 dollars was for freon for 2 units, not bad. We sent all reports and invoices to the Home Warranty company and they are standing firm on problems were not covered.
Freddie Mac is taking a grant the government paid for with our taxes to help sell foreclosed homes to buyers for piece of mind, the fear of the unknown when in fact nothing more than likely will be covered. At a cost of $1078.00 the tax payers paid to the home warranty company they are also charging a fee of $50.00 to $100.00 dollars for every service call they make, what? Just another home warranty company ripping people off. I have contacted the attorney general in my state of Mo for consumer complaints, I would like to see a class action suit enforced.