FHA Septic & Well Appraiser Lawsuit

[Dublin ohio]

What would you call going against what it was listed as?

The hard part is going to be able to prove that the appraiser actually knew that. What reason would the appraiser have to purposely falsify information. What would be the benefit.

 

[Elliott]

When I was a young appraiser, I met with the County Judge, who was very respected in the community. On a couple of cases he and I would sit down and he'd ask me what I thought and he'd steer the case in that direction. He was a problem solver and so was I. Your case has a half dozen problems. The property needs to be functional and habitable. Your mortgage payments have to be made. Rather than finding fault at this stage, and it looks like the appraiser's E/O has checked out, then the remaining parties should agree to make the septic system workable, water potable....and that liability falls on the realtors, septic people, home inspector and you. You should make up your payments and the cost to correct the other issues should be distributed equally. That would be my recommendation to the judge.

I remember a few years ago watching the 'real estate' shows when the market was hot. The sellers would have multiple offers, some above list, and the seller would take the one that include, 'no inspections.' Having a septic tank pumped is not the same as having a system inspected.

 

[Huds_Harm]

The hard part is going to be able to prove that the appraiser actually knew that. What reason would the appraiser have to purposely falsify information. What would be the benefit.

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.

In case number 512-00000000: Per published listing and online data sources, the Subject property
was connected to an onsite well and sewage disposal system, but not identified, disclosed, or
discussed, and the Appraiser failed to report the availability of connection to a public/community
water and sewer systems, and/or whether there were any jurisdictional conditions requiring
connection.

 

[Carnivore]

No question Glenn, hence the word update. It is for those of you that defended this type of appraiser.

Really!
Someone here defended this type of Appraiser. Never happened. You might be referring to Facebook Appraiser forum. If so should have said it that way.

 

[Dublin ohio]

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.

Just because it was publicly listed doesn't "prove" that she intentionally concealed it. It only "proves" that she did not perform her due diligence. I am no attorney. But it seems like you ave a "cart before the horse" problem. You are trying to use a document to prove damages after the fact. When you had the same document before the fact.

 

[Huds_Harm]

Just because it was publicly listed doesn't "prove" that she intentionally concealed it. It only "proves" that she did not perform her due diligence. I am no attorney. But it seems like you ave a "cart before the horse" problem. You are trying to use a document to prove damages after the fact. When you had the same document before the fact.

Again I only have to prove

It only "proves" that she did not perform her due diligence

You are correct I was provided the document "that I am not an intended user of" and I also do not hold the appraiser license nor was I the underwriter required to determine minimum property requirements.

 

[Huds_Harm]

Once the required field review is performed I will update again.

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.

 

[TerryRohrer]

As an appraiser, it is quite embarrassing to read this thread and the original. It seems to some, the only way this could not be entirely your fault is if you had an appraisal license, had appraised your own deal, and had made the mistake/error from which this debacle ensued. But, for any appraiser seeking to avoid culpability for anything they may have done or overlooked, these two threads appear to exhaustively cover all potential defenses!

I do hope you prevail and are made as whole as is possible. There is hope if you can keep your attorney fed. Some years ago, I was talking to an agent who had mistakenly listed a home as having public sewer when it had septic. That came to light after closing when the septic system failed, and the agent told his E&O insurer they had simply made a mistake and should just cut the check for the $10,000 it would cost to remediate. The insurer decided to fight and ended up paying $100,000 when they lost in court.

About a year ago, an attorney contacted me regarding a client who had purchased a home without a foundation under part of it. The appraiser called it a slab, though none existed. The inspector passed the "foundation" (the same guy I had a run-in with years earlier who advised the lender that the siding with holes in it I was objecting to was a cosmetic feature only, and the house wrap was the component protecting the home from the elements). In the foundation case, the buyer found the issue when he began remodeling, and hired a good attorney (who had taught the first FHA property standards class I took in about 1993). They sued everyone...lender, both agents, the appraiser, and the inspector. The appraiser was using many of the "protective clauses" you have been informed of in these threads, and I was being asked to testify if the case went to trial. Shortly before that, I got word from the attorney that all parties had settled.

Keep us informed and keep the thick skin! I'm not sure of the color (green?), but you are experiencing a phenomenon equivalent to the "blue wall of silence" that promotes and protects wrongdoing by law enforcement individuals. Appraisers tend to blame everything but appraisers' errors on situations like these, apparently wanting to keep the bar so low anyone can get over it if ever in need.

 

[Terrel L. Shields]

The hard part is going to be able to prove that the appraiser actually knew that.

If you fail to read the listing for a property, then it is on you, the appraiser, not the buyer. You must double check it all. "Confirm" I believe is the word.

 

[Huds_Harm]

As an appraiser, it is quite embarrassing to read this thread and the original. It seems to some, the only way this could not be entirely your fault is if you had an appraisal license, had appraised your own deal, and had made the mistake/error from which this debacle ensued. But, for any appraiser seeking to avoid culpability for anything they may have done or overlooked, these two threads appear to exhaustively cover all potential defenses!

I do hope you prevail and are made as whole as is possible. There is hope if you can keep your attorney fed. Some years ago, I was talking to an agent who had mistakenly listed a home as having public sewer when it had septic. That came to light after closing when the septic system failed, and the agent told his E&O insurer they had simply made a mistake and should just cut the check for the $10,000 it would cost to remediate. The insurer decided to fight and ended up paying $100,000 when they lost in court.

About a year ago, an attorney contacted me regarding a client who had purchased a home without a foundation under part of it. The appraiser called it a slab, though none existed. The inspector passed the "foundation" (the same guy I had a run-in with years earlier who advised the lender that the siding with holes in it I was objecting to was a cosmetic feature only, and the house wrap was the component protecting the home from the elements). In the foundation case, the buyer found the issue when he began remodeling, and hired a good attorney (who had taught the first FHA property standards class I took in about 1993). They sued everyone...lender, both agents, the appraiser, and the inspector. The appraiser was using many of the "protective clauses" you have been informed of in these threads, and I was being asked to testify if the case went to trial. Shortly before that, I got word from the attorney that all parties had settled.

Keep us informed and keep the thick skin! I'm not sure of the color (green?), but you are experiencing a phenomenon equivalent to the "blue wall of silence" that promotes and protects wrongdoing by law enforcement individuals. Appraisers tend to blame everything but appraisers' errors on situations like these, apparently wanting to keep the bar so low anyone can get over it if ever in need.

Thank you!