Opinions Please-condition Rating, C5 Or C4

[Tom4value]

The C5 and C6 ratings are totally useless and I have never used them. They are for UAD only. UAD is only used for mortgage lending. Fannie will not lend on a C5 or C6. Therefore, when you tell the lender about the issue after the inspection, they will either tell you to make it subject to repairs to bring it to a C4 or they will tell you to cancel the appraisal and pay for for work performed. Either way, I have never written and passed in a report with a C5 or C6 rating.

 

[Terrel L. Shields]

Subject built in 1950's with little to no updating

I think it lucky to have a C5 rating. I can't think of one that old and not seriously updated at least twice that isn't in poor condition.

 

[Overimprovement]

Therefore, when you tell the lender about the issue after the inspection, they will either tell you to make it subject to repairs to bring it to a C4 or they will tell you to cancel the appraisal and pay for for work performed.

What's wrong with that? Our job is not to get square pegs to fit into round holes, but to tell it like it is and let the client decide what they want to do about it.
I've never not received a fair amount of pay once an inspection is performed. So if you inspect a home full of mold, and a hole in the roof the size of a dog, do you just 'forget to include' pictures of that damage? Or do you just inspect homes less than 10 years old that have been well maintained?

I would hate to be you or your E&O carrier when one of your 'C4' homes ends up costing some lender $50,000 via foreclosure. Seems like a major lawsuit waiting to happen...

 

[Tom4value]

What's wrong with that? Our job is not to get square pegs to fit into round holes, but to tell it like it is and let the client decide what they want to do about it.
I've never not received a fair amount of pay once an inspection is performed. So if you inspect a home full of mold, and a hole in the roof the size of a dog, do you just 'forget to include' pictures of that damage? Or do you just inspect homes less than 10 years old that have been well maintained?

I would hate to be you or your E&O carrier when one of your 'C4' homes ends up costing some lender $50,000 via foreclosure. Seems like a major lawsuit waiting to happen...

Wow! You misread that post!
I was not complaining about what I said. They either tell me to make it subject to repairs to make it a C4 or higher (perfectly fine) or they cancel the order and pay me for my work. I tell them what my fee is so I have no problem with that, either. I said nothing that would even remotely imply that I would misrepresent the condition of a property. Sheesh!

All I was saying was that I have never passed in a report with a C5 rating.

 

[Overimprovement]

Wow! You misread that post!
I was not complaining about what I said. They either tell me to make it subject to repairs to make it a C4 or higher (perfectly fine) or they cancel the order and pay me for my work. I tell them what my fee is so I have no problem with that, either. I said nothing that would even remotely imply that I would misrepresent the condition of a property. Sheesh!

All I was saying was that I have never passed in a report with a C5 rating.

Not the first post I mis-read. OK, I see what you are saying now. Thanks for clearing that up.

That said, I rarely seem to have a lender change an 'as-is' request to a 'subject to'. Not sure why, but I also deal with mostly smaller lenders. I have turned in plenty of C5 reports. So perspective can cause one to interpret posts somewhat differently I suppose!

 

[Tom4value]

Not the first post I mis-read. OK, I see what you are saying now. Thanks for clearing that up.

That said, I rarely seem to have a lender change an 'as-is' request to a 'subject to'. Not sure why, but I also deal with mostly smaller lenders. I have turned in plenty of C5 reports. So perspective can cause one to interpret posts somewhat differently I suppose!

Not lending on a C5, C6 is a Fannie/Freddie rule. You must deal with lenders who keep the paper "in-house".

 

[Overimprovement]

Not lending on a C5, C6 is a Fannie/Freddie rule. You must deal with lenders who keep the paper "in-house".

Not entirely, but I have even turned in some C5's that I know were going to secondary market that I never heard from again. Straight up purchases that are worse than C4 are fairly rare, I will say that. But sometimes you get those sellers that are like, "I ain't doing nothing to this house. Buy or don't buy it as-is".

 

[Tom4value]

Not entirely, but I have even turned in some C5's that I know were going to secondary market that I never heard from again. Straight up purchases that are worse than C4 are fairly rare, I will say that. But sometimes you get those sellers that are like, "I ain't doing nothing to this house. Buy or don't buy it as-is".

I will bet ya anything that the lender either got stuck with the loan or had to buy it back when someone realized a ball had been dropped. Of course, you would not be privy to that because it was not your fault/problem.

Regarding "I ain't doing nothing to this house". Ummm, ya, that's why it is in C5 condition! LOL

 

[Overimprovement]

Regarding "I ain't doing nothing to this house". Ummm, ya, that's why it is in C5 condition! LOL

A couple times have been estates, where there was little incentive for any one party to want to spend cash out of pocket to get their share of a few extra dollars at closing--but only IF it closed. Also, our median age home is 61 years old, higher in some towns, and we get lots of homes that have not been updated in forever. I still see knob and tube at least several times a year! I did one 4 months ago where the only bathroom was an outhouse. Find comps for that!

 

[Tom4value]

A couple times have been estates, where there was little incentive for any one party to want to spend cash out of pocket to get their share of a few extra dollars at closing--but only IF it closed. Also, our median age home is 61 years old, higher in some towns, and we get lots of homes that have not been updated in forever. I still see knob and tube at least several times a year! I did one 4 months ago where the only bathroom was an outhouse. Find comps for that!

Ugh! Where did you go for comps for an outhouse, a campground?

One question, did you use a C5 for an appraisal for estate purposes? "C5" is for UAD, which is for mortgage lending. You don't use a URAR for appraisals for estates, do you? Or did you just use estate appraisals as examples of appraisals of dumps?
Ok, 3 questions!