Judge Rules Appraiser/Lender Owe no duty of care

[Dublin ohio]

Also, I think a listing agent, who in this case was the seller's wife, should have some sort of knowledge of what will and won't qualify for FHA so to not waste anyone's time or money with an offer.

Mybe, maybe not. Since no one knew where the septic was located prior to the listing. Would be difficult to make any disclaimer except "unknown".

 

[Raven59]

We all make mistakes; in this scenario, multiple entities contributed to the issue. The purchaser, the appraiser, and the lender all had roles to play, and it's important to recognize that responsibility is shared. FHA's stringent requirements can burden appraisers disproportionately, effectively making them easy targets for blame. With all the regulations and expectations, it often feels like wearing a bullseye, just waiting to be called out for any perceived mistake. It's a challenging environment, and it's understandable why most steer clear of FHA work.

 

[Dublin ohio]

What this thread shows is how badly outdated HUD's underwriting guidelines are. But what do you expect when you put stupid people in charge?

It's not the guidelines. But like you said it is the people. All of the guidelines in the world are useless if the people that are supposed to follow those guideline don't.

 

[Surf Cat]

The appraiser and lender also signed on the dotted line certifying the home met all FHA minimum property requirements.

and anyone who conceals the fact it was septic and well despite multiple documents stating it was, is committing fraud.

Forget the appraiser, forget the AMC, forget FHA.

Did you or did you not have a septic tank professional;

Do a pipe, camera inspection?

Sludge and scum level measurement?

Review the service report from previous inspections?

Consult with the local building, planning department, to ensure compliance with septic tank codes?

Caveat Emptor.

If the appraiser mischecked boxes, cropped photos to hide deficiencies, and you felt was generally incompetent, report them into their local board.

As for appraisal management companies, you're not going to have a lot of argument from appraisers that they're scum of the earth. Report them too.

As for checking major "unseen" components for their soundness....that's on you.

 

[Mejappz]

FHA's stringent requirements can burden appraisers disproportionately, effectively making them easy targets for blame.

Right. That's why appraisers should not be responsible for issues they are not trained to handle.

 

[Huds_Harm]

FHA's stringent requirements can burden appraisers disproportionately, effectively making them easy targets for blame. With all the regulations and expectations, it often feels like wearing a bullseye, just waiting to be called out for any perceived mistake. It's a challenging environment, and it's understandable why most steer clear of FHA work.

Because it is an unreasonable burden and too stringent for an appraiser to check the correct box.

 

[Raven59]

Also, I think a listing agent, who in this case was the seller's wife, should have some sort of knowledge of what will and won't qualify for FHA so to not waste anyone's time or money with an offer.

Was that relationship disclosed before making an offer? Knowing FHA guidelines seems outside an agent's lane. Was the seller's agent (wife) your agent? She had a duty to disclose any material defects but has no responsibility to advise you unless it's a dual-agency relationship.

 

[Huds_Harm]

Forget the appraiser, forget the AMC, forget FHA.

Did you or did you not have a septic tank professional;

Do a pipe, camera inspection?

Sludge and scum level measurement?

Review the service report from previous inspections?

Consult with the local building, planning department, to ensure compliance with septic tank codes?

Caveat Emptor.

If the appraiser mischecked boxes, cropped photos to hide deficiencies, and you felt was generally incompetent, report them into their local board.

As for appraisal management companies, you're not going to have a lot of argument from appraisers that they're scum of the earth. Report them too.

As for checking major "unseen" components for their soundness....that's on you.

Caveat venditor is a Latin term meaning “let the seller beware,” in contrast to the more widely known saying caveat emptor (let the buyer beware). The principle of caveat venditor cautions that the seller is responsible for any problem that the buyer might encounter with a service or product.

What the borrower DID OR DIDNT do does not absolve the appraiser/lender of their requirements and responsibilities especially those that are contingent on the loans approval.

 

[Huds_Harm]

Was that relationship disclosed before making an offer? Knowing FHA guidelines seems outside an agent's lane. Was the seller's agent (wife) your agent? She had a duty to disclose any material defects but has no responsibility to advise you unless it's a dual-agency relationship.

It was not disclosed until pointed out and updated accordingly. She was not my agent.

 

[Fernando]

Why aren't you after the real estate agent. The agent should know what to look for in protecting buyer in the purchase.
Relying on an appraisal which was not intended for the buyer is not due diligence especially when appraiser is not an expert in septic tanks. Heck, I never seen a septic tank.