FHA Septic & Well Appraiser Lawsuit

[Zoe]

Can't blame everything on the appraiser. Buyer has some due diligence. Their agents do also if they had an agent. Lender does too. Seller does too. Call them and say why didn't you tell me this?

 

[Fernando]

Can't blame everything on the appraiser. Buyer has some due diligence. Their agents do also if they had an agent. Lender does too. Seller does too. Call them and say why didn't you tell me this?

Smart listing agents would put in MLS that buyer needs to confirm square footage of property.
Thus, putting due diligence on buyers. And smart buying agents would not do the measurements and let others do the measurement.

 

[Zoe]

I am assuming the septic system has failed or new information has been provided to somebody.

 

[Zoe]

Smart listing agents would put in MLS that buyer needs to confirm square footage of property.
Thus, putting due diligence on buyers. And smart buying agents would not do the measurements and let others do the measurement.

Agents don't want to measure locally in general. Below their pay scale. However, they should know a little about the subject sewer system for their client.

 

[Fernando]

I am assuming the septic system has failed or new information has been provided to somebody.

In my most recent sale, after close of escrow within a month, there was a problem with the roof. Ugh.
Usually most of my purchases there are problems within first year.
I usually buy low anticipating these "unexpected" problems.

 

[Huds_Harm]

Appraiser's client is the lender. If there's an issue, lender should have an issue with the appraiser.

I agree and in this case they were required to order a field review to determine property eligibility followed by,

A) Findings

A Finding is a final determination of defect by the mortgagee.

(B) Materiality

In the context of mortgage origination and underwriting, a Finding is Material if disclosure of the Finding would have altered the mortgagee’s decision to approve the mortgage or to endorse or seek endorsement from FHA for insurance of the mortgage.

In the context of mortgage servicing, a Finding is Material if it has a financial impact on the property, the Borrower, and/or FHA.

(C) Mitigated or Resolved

A Finding has been Mitigated or Resolved if the mortgagee has adequately addressed the deficiencies underlying the Finding, and such deficiencies have been remedied so that the mortgage presents an acceptable level of risk to the mortgagee and to FHA.

 

[Fernando]

Agents don't want to measure locally in general. Below their pay scale. However, they should know a little about the subject sewer system for their client.

You don't know how buyers view a 2,010 sf versus 1,990 sf. Some people like to brag they have over 2,000 sf house. Like a 1 carat is worth LOT more than a .95 carat wrong.
Let someone else take blame if doesn't meet buyer's expectation.

 

[Zoe]

You don't know how buyers view a 2,010 sf versus 1,990 sf. Some people like to brag they have over 2,000 sf house. Like a 1 carat is worth LOT more than a .95 carat wrong.
Let someone else take blame if doesn't meet buyer's expectation.

I can imagine where you are located Sir.

 

[Fernando]

I can imagine where you are located Sir.

Homes over here over 2,000 sf are considered a large home.
If more than 2,500 sf, I usually charge a premium because of my extra effort to measure that house. Ugh.

 

[Zoe]

I have horrible one right now. Way over improvement for the whole area. I asked homeowner if they won the lottery or something. Like 9,000 sq ft house amid 1500 to 2,000 sq ft houses. Yeah. Lender said just jump to different neigborhoods and make location adjustments. Many houses may be like 1200 sq ft.

I think I will take my client's advice. I can't compare a 2,000 sq ft GLA or 1200 sq ft GLA to a 9,000 sq ft GLA. I could do cost approach but it would be ugly.

I think I have 1 or 2 around 4,000 sf GLA. Yeah, that is how bad it is. Way over improvement for neighborhood.