FHA Septic & Well Appraiser Lawsuit

[alebrewer]

Fortunately I don't have to prove "why" she concealed it, only that it was publicly listed as well and septic and she concealed it.

Again - 'concealed' implies intent - so far, you've shown nothing that would demonstrate that the appraiser did anything intentionally. A better term would be 'failed to indicate'...

 

[alebrewer]

It's a shame that FHA thinks part of an appraiser's job is to be a home inspector and surveyor. I feel sorry for the poor sod who missed this on their report. IMO - appraisers shouldn't be put in the position of being a surveyor or home inspector. Our expertise - theoretically - is assisting folks by providing well supported opinions of value. All this other ancillary stuff is just additional liability.

 

[Meandering]

Actually, this is a very significant case.

If the appraiser got a home inspection that said no septic was found, and then did their look see after the septic cleaning people left, the disturbed ground would just be evidence that someone looked for a septic system, but the inspector said none was found.

In order to find "liability" borrowers would need access to all the communications between the lenders/AMCs/appraisers/home inspectors, to be able to show where the screw ups occurred. This could be part of the time delay problem. No one with money, wants borrowers to have access to what is being conveyed to appraisers.

If everything is made to be broken, you just might be holding the hammer, if you can afford to swing it.

 

[glenn walker]

Actually once intent is discovered that the appraiser intentionally did something intentionally to damage or hide things that are factual it falls into the "Calculated Deceit " File - meaning it then can become criminal and no longer civil and also may no longer be a Error or Omission and appraisers Insurance carrier walks and abandons the appraiser as a client. " The worst news for the borrower is to hear the appraiser committed fraud or was involved with other parties to conceal material facts: Because State Boards may suspend or revoke a license but they do not award monetary damages to anyone .

 

[Huds_Harm]

Actually, this is a very significant case.

If the appraiser got a home inspection that said no septic was found, and then did their look see after the septic cleaning people left, the disturbed ground would just be evidence that someone looked for a septic system, but the inspector said none was found.

In order to find "liability" borrowers would need access to all the communications between the lenders/AMCs/appraisers/home inspectors, to be able to show where the screw ups occurred. This could be part of the time delay problem. No one with money, wants borrowers to have access to what is being conveyed to appraisers.

If everything is made to be broken, you just might be holding the hammer, if you can afford to swing it.

I am pleased to see your profession is NOT an appraiser, because you should be aware that the appraiser does not receive a copy of the borrower's home inspection.
However, they as well as the lender do have access to public information and it is their duty to verify any property specific characteristics.
Let me save you from continuing to appear as incompetent as the appraiser that performed this appraisal.
In chronological order,
Myself, the home inspector nor the seller knew the location of the septic at the time of inspection.
I requested the tanks be pumped in order for the seller to locate it prior to appraisal.
It was located and left uncovered less than 10ft from the front door in the front flower bed that the appraiser had to physically walk by to enter the home.
The lid can be seen in the required picture of the front view of the home in the appraisal report as well as a picture of the water well storage tank located in the garage. (which differs from a water heater because it has a pump on it.)
The lender/AMC requested all repair receipts to justify the difference in price in the sales history including the receipt for the SEPTIC tank being pumped.

The only one that knew there was a requirement on that item and did not perform it was the lender and appraiser.

The only thing you are correct on is this is a very significant case, because it shows the loophole the lenders are using to close loans without meeting FHA minimum property requirements which by definition,

FHA minimum property standards protect both lenders and buyers from the struggles that come with properties that have significant physical damage or pose a health and safety hazard of some sort.

 

[Overimprovement]

You can laugh emoji at all the posts you want. You brought this here, try answering some of the questions you are laughing at. In the court of public opinion, silence verifies veracity. None of us are out $100K...As I said on the original thread, you are wasting your time trying to convince all of us. You should be spending your time convincing those who can help you in some way. It truly does not matter what a bunch of random participants on an online forum think. We don't have all the facts anyway, only what one side is feeding us. Only a judge can decide in a civil case. State boards and lenders and GSEs are NOT giving you a dime. Quoting the same snippet from an FHA guide as nauseum will not get you a settlement either.

I don't think the appraiser is at fault for any of your potential losses, but nonetheless I wish you luck in your proceedings.

 

[Huds_Harm]

You can laugh emoji at all the posts you want. You brought this here, try answering some of the questions you are laughing at. In the court of public opinion, silence verifies veracity. None of us are out $100K...As I said on the original thread, you are wasting your time trying to convince all of us. You should be spending your time convincing those who can help you in some way. It truly does not matter what a bunch of random participants on an online forum think. We don't have all the facts anyway, only what one side is feeding us. Only a judge can decide in a civil case. State boards and lenders and GSEs are NOT giving you a dime. Quoting the same snippet from an FHA guide as nauseum will not get you a settlement either.

The answers are in the 18 appraisal deficiencies found by HUD.

I don't think the appraiser is at fault for any of your potential losses, but nonetheless I wish you luck in your proceedings.

Again this update did not include a question. It was for those of you who defend this type of appraiser.

 

[Zoe]

The issue is not an adjustment between public or septic. The issue is the minimum property requirements on this item were not verified and it did not and can not qualify due to not having sufficient space for repair or replacement which would have also had to be verified in the well waiver, and now costs over $100,000.00 to bring up to current health and safety codes.

Yes, I was doing a huge place of worship one time and they thought the place of worship was already on public sewer but after calling the utility company and verifying, they informed it stopped a few hundred feet of the subject. They obviously had to extend the sewer line to get access. The bank was happy and place of worship was happy I picked up on it. Idk how the surveyor or whoever missed it. I think the City helped pay the expense of the extension of the sewer line.

 

[chad hampton]

I’m not able to read through all 12 pages but I don’t understand how a buyer, seller, two real estate agents, a home inspector and an appraiser can all miss a property is on a septic. Often that’s a primary search criteria. Some buyers would never buy a septic, and some buyers would never buy public.

As far as whether a septic is operating properly, that seems more of an inspection issue. Even then I’m sure there’s disclaimers to have it serviced immediately.

My friends who have bought homes with septic tanks, get them service immediately after purchasing I’m surprised an agent would not have recommended that

Good luck, sewage back ups do happen. Not sure if homeowners insurance would cover it or not.

 

[Zoe]

Also many jurisdictions where a property has been annexed require hookup to public sewer if it is available on the street. The property can not transfer unless the hookup is made to the sewer on the street.