Failing MPRs but Unable to Collect COD Fee

[ZZGAMAZZ]

Assignment is FHA inter-family SFR purchase/transfer. Case# has been assigned.

Inspection of the 700 sqft 80-yr-old SFR revealed numerous significant conditions that fail to meet MPR and will require roof cert, termite cert, engineering cert, etc. (property is uninhabitable in my lay opinion.)

Borrower at home during the inspection had no money and needs to wait for her son "to return home from a business trip" of indefinite length.

I do not wish to continue with the process because I was not paid and might not ever get paid. If I don't complete the report I will have no recourse in small claims, from what I understand. However, I am obliged to notify HUD of the condition of the property so the MB doesn't cancel me out and hire a competitor who will overlook the problems.

How should one proceed? Is there a process to notify HUD of the condition without completing the report? Will HUD lean on the MB if the report is completed with the fee being paid? Can I notify HUD that I am working on the assignment and that the assignment should not be re-assigned if the MB tries to do so?????

 

[Greg Bell]

This is between you and the MB.No HUD involvement unless you get stiffed for the fee.I would contact the MB and charge a trip fee.You could complete the report and nag the MB for your fee if you want do the hucklebuck dance........good luck..

 

[redfish]

Call the DE underwriter.

 

[Mike Boyd]

Assignment is FHA inter-family SFR purchase/transfer. Case# has been assigned.

How should one proceed? Is there a process to notify HUD of the condition without completing the report? Will HUD lean on the MB if the report is completed with the fee being paid? Can I notify HUD that I am working on the assignment and that the assignment should not be re-assigned if the MB tries to do so?????

See my response to rejecting the property for locational problems. Same concept applies.
Make a list of the infractions and include your opinion that corrections are not economically viable. Bill them for your time. Or, wait until the son returns and tell him you are only billing for a portion of the report. You never know. The DE underwriter may decide that the cost to cure IS feasible and have you complete the report.

 

[OSU Beavers]

On the old VC sheets checking YES to any VC-1 condition required you to stop work and contact the lender. Does that still apply?

 

[Riick]

^^^^^

Lender??? ... what Lender???? He's dealing with a sleazy MB
.
.

 

[ghrousseau]

Assignment is FHA inter-family SFR purchase/transfer. Case# has been assigned.

Inspection of the 700 sqft 80-yr-old SFR revealed numerous significant conditions that fail to meet MPR and will require roof cert, termite cert, engineering cert, etc. (property is uninhabitable in my lay opinion.)

Borrower at home during the inspection had no money and needs to wait for her son "to return home from a business trip" of indefinite length.

I do not wish to continue with the process because I was not paid and might not ever get paid. If I don't complete the report I will have no recourse in small claims, from what I understand. However, I am obliged to notify HUD of the condition of the property so the MB doesn't cancel me out and hire a competitor who will overlook the problems.

How should one proceed? Is there a process to notify HUD of the condition without completing the report? Will HUD lean on the MB if the report is completed with the fee being paid? Can I notify HUD that I am working on the assignment and that the assignment should not be re-assigned if the MB tries to do so?????

Any chance this loan might be switched to a 203K rehab loan? If the borrower has equity they might be eligible for that program?