Hoarder House / FHA Inspection

[jmst]

I attempted to do an FHA inspection on a house yesterday morning. The interior of the house had 3' to 5' high stacks of junk/collectibles throughout the house/garage/basement. 90% of the floor/walls were obstructed by the collectibles with only pathways connecting the rooms. One of the bathroom was stacked with stuff and unusable.

It was not possible to access a majority of the outlets for testing, test the plumbing, access the attic. It was also not possible to determine the overall condition of walls/floors and my concern is that there may be mold or damage beneath the long standing piles that i cannot see.
I provided interior photos to the AMC to give to the lender so the order could be cancelled/trip fee. The lender is requesting that an FHA report be written up subject to items being removed so i can gain access to areas needed for the appraisal. Not sure that is possible.
I feel for the homeowners but dont think it is possible to produce a credible report (even subject to) based on the initial inspection. What is my obligation?
Appreciate any input from those with hoader experience.
Thank you

 

[ucbruin]

I attempted to do an FHA inspection on a house yesterday morning. The interior of the house had 3' to 5' high stacks of junk/collectibles throughout the house/garage/basement. 90% of the floor/walls were obstructed by the collectibles with only pathways connecting the rooms. One of the bathroom was stacked with stuff and unusable.

It was not possible to access a majority of the outlets for testing, test the plumbing, access the attic. It was also not possible to determine the overall condition of walls/floors and my concern is that there may be mold or damage beneath the long standing piles that i cannot see.
I provided interior photos to the AMC to give to the lender so the order could be cancelled/trip fee. The lender is requesting that an FHA report be written up subject to items being removed so i can gain access to areas needed for the appraisal. Not sure that is possible.
I feel for the homeowners but dont think it is possible to produce a credible report (even subject to) based on the initial inspection. What is my obligation?
Appreciate any input from those with hoader experience.
Thank you

The only experience I have is from the TV show...
I bet once the report is made "subject to"...
The homeowners will cancel the loan...

Many lenders don't wish to seem like they are discriminating so they want to have a completed report...

 

[jmst]

The only experience I have is from the TV show...
I bet once the report is made "subject to"...
The homeowners will cancel the loan...

Many lenders don't wish to seem like they are discriminating so they want to have a completed report...

would it be better to give the borrower guidelines for cleaning the house up with a reinspection the goal instead of a subject to. I feel for these homeowners. The husband is held hostage to his wife's obsession. They live in a rubics cube. They wont be able to comply and he would only have to pay a trip fee.

 

[RSW]

I have done FHA appraisals like that before. I just made the report subject to the personal property being removed so I could complete the inspection. The borrower did not do the loan and I did not have to go back out.

 

[ucbruin]

would it be better to give the borrower guidelines for cleaning the house up with a reinspection the goal instead of a subject to. I feel for these homeowners. The husband is held hostage to his wife's obsession. They live in a rubics cube. They wont be able to comply and he would only have to pay a trip fee.

Sorry but I haven't any experience regarding your situation...
Generally I refer the homeowners to the lender for guidelines when it regards non-appraisal issues...
Which may or may not be your situation...

Good luck....

 

[jmst]

I have done FHA appraisals like that before. I just made the report subject to the personal property being removed so I could complete the inspection. The borrower did not do the loan and I did not have to go back out.

the lender has requested specific things that need to be moved. did you get specific or just leave it at personal property. concern is mold under those piles of collectibles.

 

[glenn walker]

I get about one a year- The problem with you telling the borrower his-her house is a mess is often people take it as a personal affront and no matter how gentle you are the wife who is the hoarder is going to freak out so I would complete the report "subject" to getting clear access to everything including the stacked up bathroom so you can check things out.

Anyway I would finish the report "Subject" to clear access to inspect the interior and also state the Property Currently Does Not meet FHA Minimum Property Requirements due to possible health & safety issues ( then make sure you have lots of interior photos in the report so the underwriter-reviewer ) know it's a mess. The lender will then contact the borrowers and inform them what will be required and now you just wait to see what happens. No matter what if they want the loan there is going to be a 1004D and a trip fee .

 

[Peter LeQuire]

Dealing with a client that requires piecemeal information is a losing proposition. The AMC doesn't want to ruffle the lender's feathers; the lender doesn't want to lose a loan in its pipeline; etc. On more than one occasion, I dealt with significant push back when resolving specific conditions ("which items do you want removed") reveals other deficiencies, and when repair/remediation of newly disclosed conditions is required, the response is often "you didn't say anything about THAT".

Post #7 is the correct response. Complete the appraisal; reject the property; send the bill.

 

[J Grant]

would it be better to give the borrower guidelines for cleaning the house up with a reinspection the goal instead of a subject to. I feel for these homeowners. The husband is held hostage to his wife's obsession. They live in a rubics cube. They wont be able to comply and he would only have to pay a trip fee.

Do not get involved with the HO. They are the customer of the lender and the lender will inform them of results and the requirement to move things. If they comply, lender will reach out to you to go back for inspection. If they dont' comply loan will be cancelled.

 

[Rlong]

I had one, although it was FNMA, but I still said I could not tell condition (and would likely be C5 from what I could see). It was cancelled.