1. Welcome to AppraisersForum.com, the premiere online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Liability, Aren't Lenders/realtors Special?

Discussion in 'General Appraisal Discussion' started by Caterina Platt, Dec 2, 2003.

Thread Status:
Not open for further replies.
  1. Caterina Platt

    Caterina Platt Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    I never cease to be amazed at the gall of some in our industry these days.

    Appraising the 'jewel' of the week. A former HUD repo picked up for a song and refurbished, well sort of. The contractor Mrs. Frugal investor hires was probably no more than the next door neighbor's out of work son-in-law. Who knows! Anyone with a hammer I suppose. Very fair quality house to begin with, and many red flags - horizontal cracks in the drywall the length of the family room, wavy roof decking, much daylight shining down the water heater vent, fascia/eaves rotting and painted over, and my personal favorite - romex from the wall heater unit spliced with wire nuts and fed thru the wall into the adjoining bath room. The splice was to connect the former end of an orange heavy duty extension cord plug and PLUG IT IN TO THE BATHROOM OUTLET!! Good idea, eh? :rolleyes: Realtor claims the homes been entirely re roofed.

    I'm trying to be as diplomatic as possible and before sending back a scathing report requesting a full structural and code inspection, request the home owner's inspection that has already been done. The Home Inspector is a fairly sharp guy and I trust his opinion. I require 3 items of repair out of the 12-15 (I really could care less about rocking toilets, just tell me it doesn't leak). Roof ridge cap installation correction, seal all roof penetrations, and repair/enclose exposed wiring to code. I place mega disclosures in the report about 'no warranty implied or expressed,....hire a licensed contractor in the field of expertise of your concern...yada, yada. Make the requirements such that receipts from the repairing contractors should suffice to clear the appraisal conditions. I was careful not to mention the need for a final inspection. All's well, right?

    Nope. Day before Thanksgiving, frantic call from both Realtor and lender, 'We need a 442! Can you be there in an hour? We're supposed to close this at 1:00!' Well, first off, No, I can't. Second, these repairs are complete, right? 'Yes. All done.' Wonderful, fax them the receipts and you should be good to go. I'm no code expert, roofer, or electrician. From the Realtor, 'Well........I'm at home right now and I don't have those. Why can't you go out there?? Once again I explain, call an expert! Further into the conversation, it is revealed that the buyer's and seller have signed off on an 'As Is' agreement and resolved both Realtors from any liability. Sweet. But the lender is my concern, folks. Further, I gleen from Mr. Realtor that it was actually HIM that did some or all of the repairs, hence his real concern over the receipt issue. He encased the electrical wires in conduit, etc. Whoops!! Knowing this guy's nature, I'm figuring what's taken place is removal of the wire nuts that were too fat to fit in the conduit and replacement with electrical tape - worse- then stuffing the whole thing into a sleeve which I now cannot see the 'repair'. 'Get the home inspector back out there would be my recommendation.' Another call to the lender to clarify that I cannot do this.

    A few hours pass, I'm back in the general area of the subject, and call the Realtor out of courtesy. 'Did you get anywhere with your issue.' 'Yes, I got those receipts faxed over to the lender. We're just waiting to hear from them now.' Good. Hmmmm. Musta printed his own 'receipts'.

    Today, another frantic call (evidently 1:00 Weds. the 26th came and passed) from the lender. 'We still need that 442.' Sigh. Has anyone talked with the home inspector? No. Then I call him. He has not reinspected, but we both agree the liability is not one we're taking.

    Now, I fully expect this particular Realtor to be a bit slimy. No surprises there. But what I cannot get over is the da** conventional lender who just cannot seem to grasp that appraisers cannot, will not, and should not be asked to speak for repairs requiring a licensed professional. Everyone in the picture has been opted out of the liability for this POS but the appraiser. NOT!!!

    Hold firm guys. Do not bend to these idiots. It's really no different that that blasted MH Checklist. Thank goodness that died with the 1004-C.
     
  2. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    Thanks Cat! You have such good stories with lessons in them.
     
  3. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    yes she does have good stories with lessons in them. Seems she always learning a new lesson. Its got to be tough, Cat! I think it would drive me nuts.
     
  4. Bobby Bucks

    Bobby Bucks Elite Member

    135
    Jan 27, 2002
    Professional Status:
    Real Estate Agent or Broker
    State:
    North Dakota
    Caterina that one must have been a doozy.....did they have any duct tape in the floor joists to give it additional support? :) So it was a prior HUD morphed into a conventional because they replaced the aluminum bolts with stainless steel? I think I would have thrown in an REO addendum and VC sheets just to guarantee that it would never actually close! A gold jacketed dual agency,
    Carlton Sheets deal is my guess. :p
     
  5. Caterina Platt

    Caterina Platt Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    Sorry for the rant guys. Just scalds me sometimes. How many times does a fool need to hear 'No. I'm not doing that.'

    The real lesson here: Run like the wind from these assignments. Your competition is plenty hungry.
     
  6. Tom Barclay

    Tom Barclay Senior Member

    0
    Apr 7, 2002
    Professional Status:
    Retired Appraiser
    State:
    Oregon
    Cat.,
    Run like the wind from these assignments. Your competition is plenty hungry.

    While I understand your frustration, running away from these is only going to guarantee that someone will die in that firetrap. It is unfortunate that there are appraisers out there that apparently can live with themselves when an entire family dies after going to bed some night; or a child is electrocuted in the bathtub.
    You are doing the right thing by demanding that it be fixed, and fixed right.
     
  7. Caterina Platt

    Caterina Platt Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    Tom,

    Thanks for your encouragement. You're right, we're fighting the good fight. The recent development is that the home inspector did later go out there. He's fine with things as they are repaired. Fabulous! But.....they still want a 442. Grrrrrrrrr. So smart aleck Cat has a faxed copy of the home inspector's Certification.

    I scan it and incorporate it into the report. The 442 reads:

    Per the attached statement, all required repairs appear to be completed. No warranty is implied or expressed on the dwelling or any item thereon. The appraiser has not reinspected the property as the appraiser is not an expert in the field of electrical or roofing, nor any other specialized area of the construction industry. The property has been reinspected by the home inspector. Should further verification of these items be of concern to the client, it is strongly suggested that a licensed professional in the field of expertise involved be consulted.
     
  8. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    Good one Cat!!!

    Now charge em at least $75 for that nonsense! :lol:
    Pain & sufferin expense
     
  9. jeff samolinski

    jeff samolinski Senior Member

    0
    Apr 18, 2003
    Good job Kat hang in there!!!
     
Thread Status:
Not open for further replies.

Share This Page