Client Overstepping with Borrower's?

[glenn walker]

You work for the client, not the other way around. IF they need a re inspect for a room contingent on bed removal than go and do it for an 1004D Am sure the couple is smart enough to ask someone to move the bed out for them

Over reach? The lender is extending the borrower a loan worth a lot of $ the lender (or FHA ) has a right to require certain conditions. Nobody is forcing the borrower to take out the loan

Is this the real reason? Has any lender or GSE ever been held liable for something like that simply for funding a loan?

No but its done all the time

 

[Overimprovement]

You tend to get stips like that when the market cools off and underwriters with nothing better to do get bored.

Oh that is true--last few years have been quite stipless, have enjoyed it.

When I was an REO asset manager, we had one house that was really hard to get rid of because of location and some external obsolescence. Finally found a buyer, and the appraiser (FHA loan) called out a trip hazard because there was a transition strip between two rooms (one carpet, one hardwood). So yes, it got strip stipped for trips. (sorry). Took a lot of work to keep that deal together, our regular handyman that worked on the bank's REO homes was on vacation for 2 weeks, and so on and so on.

There is just part of me that would love to know why FHA or any lender gives a rip about stuff like that? They aren't liable. And we know they don't REALLY care about the individual's safety. It certainly isn't a value issue. Or maybe they do--are they asking if the borrowers wore their seat belts on the way to the closing?

 

[Fernando]

Oh that is true--last few years have been quite stipless, have enjoyed it.

And I thought my reports were perfect. Thus few stipless.

When I was an REO asset manager, we had one house that was really hard to get rid of because of location and some external obsolescence. Finally found a buyer, and the appraiser (FHA loan) called out a trip hazard because there was a transition strip between two rooms (one carpet, one hardwood). So yes, it got strip stipped for trips. (sorry). Took a lot of work to keep that deal together, our regular handyman that worked on the bank's REO homes was on vacation for 2 weeks, and so on and so on.

There is just part of me that would love to know why FHA or any lender gives a rip about stuff like that? They aren't liable. And we know they don't REALLY care about the individual's safety. It certainly isn't a value issue. Or maybe they do--are they asking if the borrowers wore their seat belts on the way to the closing?

At least the reviewers are reading the reports and making sure things are done and called correctly.

 

[Sadie]

Is this the real reason? Has any lender or GSE ever been held liable for something like that simply for funding a loan?

I am not the person to answer that. I was only suggesting the logic behind it. Also FHA likes to have the properties to code, which in most cases is IBC. I would imagine in this sue-happy country, if anything were to happen, the shot gun approach would be used to select any and all defendants. Go for the $$. CYA.

 

[Tom D]

FHA allows a bedroom in the basement if there is a separate basement exterior door to the outside, no matter the size of the window, but i still wouldn't call it a bedroom. if this was a sale, a mistake to bring it up. if a refi, you gonna watch that basement 24/7 to make sure it stays a basement? but, it's always a business decision. once learned, never repeated.

 

[Mike Ault]

FHA allows a bedroom in the basement if there is a separate basement exterior door to the outside, no matter the size of the window, but i still wouldn't call it a bedroom. if this was a sale, a mistake to bring it up. if a refi, you gonna watch that basement 24/7 to make sure it stays a basement? but, it's always a business decision. once learned, never repeated.

An appraiser up here made the mistake of calling one of those basement rooms a bedroom when it didn't actually qualify as one for lack of egress. To make matters worse that room had a gas water heater and the vent pipe wasn't "venting" properly. Nobody noticed that particular problem until the new borrower moved in and let one of their children sleep in it. The next morning the child was violently ill and when they rushed him to the emergency room it was determined that he was suffering from carbon monoxide poisoning. The appraiser got sued and the plaintiff's lawyer alleged that the child was going to suffer from permanent damage to his developmental skills. That borrower was going to let the child sleep in the basement regardless of what the appraiser called the room but since he called it a bedroom he ended up in hot water. Be careful out there.

 

[Sadie]

An appraiser up here made the mistake of calling one of those basement rooms a bedroom when it didn't actually qualify as one for lack of egress. To make matters worse that room had a gas water heater and the vent pipe wasn't "venting" properly. Nobody noticed that particular problem until the new borrower moved in and let one of their children sleep in it. The next morning the child was violently ill and when they rushed him to the emergency room it was determined that he was suffering from carbon monoxide poisoning. The appraiser got sued and the plaintiff's lawyer alleged that the child was going to suffer from permanent damage to his developmental skills. That borrower was going to let the child sleep in the basement regardless of what the appraiser called the room but since he called it a bedroom he ended up in hot water. Be careful out there.

I imagine everyone associated with that appraisal was included in the law suit.

 

[glenn walker]

The real problem out here in Felony Flats is a everyone knows the cat and mouse game and it goes like this. Range, oven, propane tanks, gasoline cans in garage all are removed. I go back to take photo and its all been dragged onto the side of the garage. I take photo and before I get in truck five illegals run out and drag it right back into the garage where four or five live in it and hook it all back up. I have seen extension cords running across yards to other houses, feet sticking out of Tuff sheds, you name it so its a never ending game.

Repeat- Remove Gas Range and Barbecue, gas and propane tanks and beds from garage , appraiser will be coming at 10 AM so at 9: 30 AM get it all out. He will be cranky but ignore him, as soon as he pulls out quickly take it all back inside.

 

[Fernando]

The real problem out here in Felony Flats is a everyone knows the cat and mouse game and it goes like this. Range, oven, propane tanks, gasoline cans in garage all are removed. I go back to take photo and its all been dragged onto the side of the garage. I take photo and before I get in truck five illegals run out and drag it right back into the garage where four or five live in it and hook it all back up. I have seen extension cords running across yards to other houses, feet sticking out of Tuff sheds, you name it so its a never ending game.

Repeat- Remove Gas Range and Barbecue, gas and propane tanks and beds from garage , appraiser will be coming at 10 AM so at 9: 30 AM get it all out. He will be cranky but ignore him, as soon as he pulls out quickly take it all back inside.

The lender as well as me, the appraiser have nothing to do with what the owner does to the property after I take the photo.
It's a liability issue and at time I was there, the place looked "safe" and I let lender know.
I even tell the owner that it's a lender issue and what you do afterwards is not my concern.

 

[J Grant]

An automobile manufacture is liable if the auto they produce has a defect that causes an accident. They are not liable for an owner being a crappy driver and causing an accident