"Subject to Inspection" but AMC and client still want a 1004D

[NJ Valuator]

Foundation had some cracks so I made report "subject to inspection" by a qualified professional since I am not qualified to determine what, if any, repairs are needed.

As per selling guide, "The lender must decide if the inspection(s) is required and whether the property meets eligibility requirements. If the property does not meet eligibility requirements, the lender must provide satisfactory evidence that the condition has been corrected or repaired prior to loan delivery. In this case, the appraiser is not required to review the professionally prepared report, re-inspect the property, or provide a Form 1004D. The lender must document the decision and rationale in the loan file."

Foundation was repaired. Now they want a 1004D and for me to sign off that it is satisfactorily completed.

I explained that I am not required to provide a 1004D because I did not call for the repairs; I left it up to the lender to decide.

Am I handling this correctly?

 

[Terrel L. Shields]

Yes. Don't let them browbeat you into doing it. Quote the exact selling guide language and say it is in your ballpark, not mine.

 

[Zoe]

Foundation had some cracks so I made report "subject to inspection" by a qualified professional since I am not qualified to determine what, if any, repairs are needed.

As per selling guide, "The lender must decide if the inspection(s) is required and whether the property meets eligibility requirements. If the property does not meet eligibility requirements, the lender must provide satisfactory evidence that the condition has been corrected or repaired prior to loan delivery. In this case, the appraiser is not required to review the professionally prepared report, re-inspect the property, or provide a Form 1004D. The lender must document the decision and rationale in the loan file."

Foundation was repaired. Now they want a 1004D and for me to sign off that it is satisfactorily completed.

I explained that I am not required to provide a 1004D because I did not call for the repairs; I left it up to the lender to decide.

Am I handling this correctly?

No problem. Get client to provide you the report from the contractor. Go look at it and incorporate it in 1004D. Your done.

 

[Zoe]

From what I have heard, some of the biggest lawsuits that occur in single family housing are due to foundation issues.

So, what you are doing when you incorporate the expert in your 1004 D is transferring that liability to the expert on foundations.

You go wash your hands like after you go to bathroom, you collect for your 1004D.

 

[sputnam]

You might be technically correct however, why wouldn't you take their money and to look at what work has been done? You can still state that you are not a civil engineer and make no claim regarding the adequacy of the repairs. Just describe what you see and send them an invoice.

 

[NJ Valuator]

You might be technically correct however, why wouldn't you take their money and to look at what work has been done? You can still state that you are not a civil engineer and make no claim regarding the adequacy of the repairs. Just describe what you see and send them an invoice.

I did not call for any repairs to be completed so how can I answer the question in the 1004D that asks "Have the improvements been completed in accordance with the requirements and conditions stated in the original appraisal report?"

Unless I just answer yes and state that an inspection was done. Case closed have a nice day.

 

[Raven59]

Foundation had some cracks so I made report "subject to inspection" by a qualified professional since I am not qualified to determine what, if any, repairs are needed.

As per selling guide, "The lender must decide if the inspection(s) is required and whether the property meets eligibility requirements. If the property does not meet eligibility requirements, the lender must provide satisfactory evidence that the condition has been corrected or repaired prior to loan delivery. In this case, the appraiser is not required to review the professionally prepared report, re-inspect the property, or provide a Form 1004D. The lender must document the decision and rationale in the loan file."

Foundation was repaired. Now they want a 1004D and for me to sign off that it is satisfactorily completed.

I explained that I am not required to provide a 1004D because I did not call for the repairs; I left it up to the lender to decide.

Am I handling this correctly?

If you sign it, you are buying into the liability. I've been an expert in multiple lawsuits where the appraiser stepped outside their lane. They don't want to pay the engineers fee. You will be cheaper and faster.

 

[Tom4value]

Foundation had some cracks so I made report "subject to inspection" by a qualified professional since I am not qualified to determine what, if any, repairs are needed.

As per selling guide, "The lender must decide if the inspection(s) is required and whether the property meets eligibility requirements. If the property does not meet eligibility requirements, the lender must provide satisfactory evidence that the condition has been corrected or repaired prior to loan delivery. In this case, the appraiser is not required to review the professionally prepared report, re-inspect the property, or provide a Form 1004D. The lender must document the decision and rationale in the loan file."

Foundation was repaired. Now they want a 1004D and for me to sign off that it is satisfactorily completed.

I explained that I am not required to provide a 1004D because I did not call for the repairs; I left it up to the lender to decide.

Am I handling this correctly?

You made the appraisal “subject to”. That is a loose end that needs to be cleared up with the lender. You say, “foundation was repaired”. I presume that was from a contractor. Ask them for a invoice/certification and refer to that in a 1004D and you are done.

 

[Surf Cat]

You made the appraisal “subject to”. That is a loose end that needs to be cleared up with the lender. You say, “foundation was repaired”. I presume that was from a contractor. Ask them for a invoice/certification and refer to that in a 1004D and you are done.

This is what I would have done in the past without giving it a second thought.

It's "different" now though. Accusations of appraisal bias, property data collectors, hybrid assignments. It gives Raven59's post credence along with Terrel's "experiences" in dealing with being thrown under the bus even though falsely accused. It makes you second-guess yourself....

 

[Dublin ohio]

You made the appraisal “subject to”. That is a loose end that needs to be cleared up with the lender. You say, “foundation was repaired”. I presume that was from a contractor. Ask them for a invoice/certification and refer to that in a 1004D and you are done.

The only way I would do it is to have the actual inspection report. Which typically lists the needed repairs and many time the method. Have the itemized invoice for the work. Then inspect and see if what was to be done is done. If it needed steel wall braces. you will see them. If they only required that the cracks be filled. You would see that. The only thing that you would be attesting to is what you saw based on the inspection recommendations. Not much different than any other completion inspection. You add an addendum page explaining everything.