Painesville family left homeless after bungle real estate transaction

PAINESVILLE, Ohio - Like many families, Jeff Gatchel and his wife have been stuggling in this economy. Jeff thought downsizing to a more modest home would help his family financially. 

Jeff decided to contact the U.S. Department of Housing and Urban Development, or HUD in his search to find a more affordable home.

HUD and Jeff's real estate agent found a home in the city of Painesville for right around $24,000. Jeff sold his former home in Perry Township, and was on schedule to move out on time.  Jeff said the real estate transaction seemed to be going smoothly, that is until he tried to turn on the utilities at his new house.

The city of Painesville denied the Gatchel family an occupancy permit, after Jeff was stunned to learn that the home was zoned for commercial use only. With their old home already occupied by the new buyer, Jeff and his family were basically left homeless. 

Jeff contacted 5 On Your Side Troubleshooter Joe Pagonakis, and Joe went to Painesville city hall to talk to the city manager's office. Painesville officials told News Channel5 that the home the Gatchel's purchased had been vacant for more than a year, and according to the city charter, a home sitting longer than a year is automatically re-zoned commercial use only.

Painesville city leaders said the city contacted HUD about the change in the homes zoning status, but did not renew its residential zoning. The listing for the home was also incorrect in reflecting the change in the homes zoning status, something Jeff's real estate agent didn't catch before the sale.

Because of NewsChannel 5's effort in this case, the city of Painesville is now working with HUD to extend the Gatchel's contract on the home. At the same time, the Painesville city manager is hoping to work with the city planning commission to change the homes zoning to residential.

Because of a growing number of home foreclosures, houses are sitting idle longer, and may accure a number of assesments, code violations and potential zoning issues.

Buyers should do their own homework when buying foreclosed homes. Even though you may be working with HUD or real estate agent, it's important that you contact city hall to check and make sure the house is free legal issues.

A list of available local HUD homes can found on the HUD website. portal.hud.gov/portal/page/portal/HUD