Fire damage discovered during pre-foreclosure exterior/driveby.

[spittman]

You could do it as a land appraisal but be sure to do a H&BU analysis as unless the cost of repairs to the main structure exceeds the contributory value of it "As Is" then H&BU is to repair. FWIW, if its only smoke damage, a deep clean, fresh paint, and floor coverings would likely be all that is required. Hardly enough to require razing. MHO.

FWIW, my mom left something on the stove and caught the cabinets on fire. Heavy smoke residue throughout the house. A company like ServPro or similar came in, pulled out all the floor coverings, cleaned everything, repainted and put in new floor coverings and kitchen cabinets. Roughly $25k cost to the insurance company.

Sounds good, but I have no idea how much damage was done to the inside.

 

[Mr Rex]

You mention that there have been insurance adjusters and contractors, so someone has the info. If a quick call to the HOA doesn't provide contact info, I'd punt back to the lender to provide the info or let someone else stick their neck out for a one time fee. YMMV.

 

[Carnivore]

Like i think I said earlier After receiving REO reports on HECM's HUD is going back behind the scene and getting another Appraisal via a Contract with a Major Player(not an AMC). Often times its because the first one was a 2055.

 

[Mark K]

My brother's garage in NC just recently burned. Caused by an overheated Li-ion battery being charged for a remote controlled boat for his pond. Battery was the size of about two sticks of butter. Garage connected to house by enclosed breezeway so no effect on living area. Brick garage, 500 SF, insurance cost to repair is about $30K so far, not including contents. Exterior brick walls intact so it wasn't a tear down and start over. They didn't even have to replace rafters or roof decking but replaced the shingles due to heat.


My point is that the repairs, to date, are ballpark $60/sq.ft. and it wasn't a complete loss. I would not have guessed this level of expense so absolutely do not try to estimate any repairs costs without credible bids. A lot of burn houses are razed and rebuilt because its cheaper to start over even if the burned portion doesn't look that extensive.

 

[J Grant]

"They tell me to proceed and to provide a picture of the gate with an explanation. When I do my research, I find a listing of the Subject Property which expired less than a year ago ... beautiful home!
Not satisfied with just getting a picture of the gate, I successfully gain access beyond the walls of this private community by scheduling showtimes with several "potential" active comps within the same"

OP note they created this mess, by not following normal course of business and client instruction take a picture of gate and leave, instead, they gained access under false pretenses (scheduling showtimes with active comps ) - now they are stuck with result and want to bail,

These pre foreclosure assignments have limited access, the end, respect that after normal attempt to gain access For an appraiser to gain access to private communities under false pretenses, well figure out what is wrong with that. Assignment assumption of a habitable condition unless one has evidence otherwise, and the client understands that when interior access is granted at a later date, the condition /value might change and normally the client will order a second appraisal at that time anyway,

 

[J Grant]

The OP thought they were going above and beyond, helping their client by using a pretense to get into gated community, but in fact they compromise their client : normally pre foreclosure the house is still owned/ mid legal proceedings - the owner till day loses property is the owner and has right to refuse access - living in a gated community is a refusal of access without owner permission,

Now the owner has grounds ( if they find out ) to go after the lender for trespass, why do things that can jeopardize - was it disclosed to client how appraiser got access? Either way client is in a compromised position in the foreclosure process, probably nothing will come of it but learn for the next time.

 

[Carnivore]

The OP thought they were going above and beyond, helping their client by using a pretense to get into gated community, but in fact they compromise their client : normally pre foreclosure the house is still owned/ mid legal proceedings - the owner till day loses property is the owner and has right to refuse access - living in a gated community is a refusal of access without owner permission,

Now the owner has grounds ( if they find out ) to go after the lender for trespass, why do things that can jeopardize - was it disclosed to client how appraiser got access? Either way client is in a compromised position in the foreclosure process, probably nothing will come of it but learn for the next time.

The Subject is in an Estate so action has to move forward in settling that estate

 

[J Grant]

so what if is an estate? The appraiser is working for the client, and thus if appraiser uses false pretenses to get access to a property, that reflects back to the client, and could raise issues for them if discovered.

simple, if you do not have owner permission to enter, don't enter.

 

[J Grant]

It's a stretch, but possible - seller finds out appraiser was at house without permission ( since they never gave it, not hard)- seller could even go so far as to blame the fire on the appraiser, that the house was fine and appraiser caused it ( smoking or whatever. ) That is very far out there and a very slim possibility, but it illustrates the kind of potential problem that can come up . People losing a house in foreclosure are stressed and can be vengeful which is why I avoided any crossing a line for entry or inspection.

While the owner has no proof, they don't need proof to pursue claim against the lender for damage -most people are not that crazy but who knows...just avoid it...

 

[Carnivore]

so what if is an estate? The appraiser is working for the client, and thus if appraiser uses false pretenses to get access to a property, that reflects back to the client, and could raise issues for them if discovered.

simple, if you do not have owner permission to enter, don't enter.

In my state lenders do access house's that are vacant. They even go in an change all the locks. I think it has something to do with Federal Banking Laws.

So be careful how you throw around thing like Owners rights when it comes to encumbered properties by 1st lien Holders.

But, and this should surprise no one, they often jump the gun. They think they can do anything.

Deceptive Foreclosure Practices: When Banks Treat Occupied Homes as Vacant

Banks have been locking homeowners in foreclosure out of their homes without the legal right to do so. Learn how you might be able to prevent this.

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