macraven - I totally understand.
Thanks guys for your thoughts!
We had the renovations (reno kitchen, new electrical, wall removed on first floor, new baths, and basement finished) since we moved in. All subcontractors were licensed and working under my brother and his buddy who are licensed contractors. But it appears it was all done without permits.
I never thought about the permits. DH was retired and I was working on a very stressful 12 hour a day job at the time. And I know, ignorance is no excuse.
From what I've read we will possibly be responsible for having the work inspected (by drilling into walls etc.), redone if needed and the permits and penalties, and probably back taxes. Our agent is looking into things so we're holding our breaths and trying not to let this totally control our lives.
On another bump in the road, DH was pulling records for 2015 taxes and found that our preparer omitted all mortgage deductions for 2014. We overpaid by more than $5000. We will now have to refile.
Guess that money will be spent on the permit problem!
Think I'll go have a glass of wine!