How do lenders deal with houses with un-permitted additions

[HLS]

The real culprits in this economic meltdown are the same fools that are pretending to know how to fix it.

They are children that looted the candy store, sold the candy to their friends, and pocketed the money…
Now they got caught.The store is bankrupt. They want to blame everybody else EXCEPT THEMSELVES for what went wrong.
Blame the landlord, the security company, the manufacturer, but the child bandits are now in charge of investigating the crime. Now they are stealing money to give to their friends who no longer have a source of dirty income or candy.

The change in appraisals is saying that appraisers were responsible for the housing mess. There is only a sliver of truth in that. A dishonest appraiser is still dishonest.

This will ruin the careers and incomes of honest appraisers. If an appraiser has been in business for 10-20 years and has dozens of banks or brokers sending them business, that stops completely on May 1st…

An appraiser with 8 employees recently told me that he is done, and 8 appraisers will be out of work. He will not get enough orders to keep them busy.
In the end, it will harm consumers, financially ruin most appraisers, and only benefit the management companies who have just been handed a govt contract.
Orders sent through management companies will result in apparisaers receiving about 50% less income per job, and fewer jobs.

It might appear to some people that the govt is doing the right thing , it’s typical BS spin that foolish America falls for.

Once again the blame is deflected to spare the guilty… HLS

[gn]

[quote=HLS]Just because it was done years ago and has changed hands and hasn’t been a problem before, doesn’t mean that it won’t become a problem in the future.
[/quote]

HLS, thank you for your response.

So, any re-sale property can potentially have unpermitted additions ? Do home inspectors typically compare public records with actual floor plans ?

[gn]

[quote=HLS]Just because it was done years ago and has changed hands and hasn’t been a problem before, doesn’t mean that it won’t become a problem in the future.
[/quote]

HLS, thank you for your response.

So, any re-sale property can potentially have unpermitted additions ? Do home inspectors typically compare public records with actual floor plans ?

[gn]

[quote=HLS]Just because it was done years ago and has changed hands and hasn’t been a problem before, doesn’t mean that it won’t become a problem in the future.
[/quote]

HLS, thank you for your response.

So, any re-sale property can potentially have unpermitted additions ? Do home inspectors typically compare public records with actual floor plans ?

[gn]

[quote=HLS]Just because it was done years ago and has changed hands and hasn’t been a problem before, doesn’t mean that it won’t become a problem in the future.
[/quote]

HLS, thank you for your response.

So, any re-sale property can potentially have unpermitted additions ? Do home inspectors typically compare public records with actual floor plans ?

[gn]

[quote=HLS]Just because it was done years ago and has changed hands and hasn’t been a problem before, doesn’t mean that it won’t become a problem in the future.
[/quote]

HLS, thank you for your response.

So, any re-sale property can potentially have unpermitted additions ? Do home inspectors typically compare public records with actual floor plans ?

[drboom]

[quote=HLS]
The change in appraisals is saying that appraisers were responsible for the housing mess. There is only a sliver of truth in that. A dishonest appraiser is still dishonest.
[/quote]

Face it, the whole appraisal “industry” is dishonest, else we would never have seen the ridiculous valuations of the recent past. Anyone with an ounce of sense could see that no matter what someone was willing to pay, and no matter what some damnfool bank was willing foist off on the MBS “investors”, a 1,000sf 3/1 shack in Da Hood isn’t worth almost a half million dollars.

The lenders needed someone to put a fig leaf over their obvious disregard for underwriting standards, and the appraisers were only too happy to oblige.

[quote=HLS]This will ruin the careers and incomes of honest appraisers. If an appraiser has been in business for 10-20 years and has dozens of banks or brokers sending them business, that stops completely on May 1st…

An appraiser with 8 employees recently told me that he is done, and 8 appraisers will be out of work. He will not get enough orders to keep them busy.[/quote]

It’s sad when times change, true. But ask your friend how much responsibility he bears for this mess. How many tumbledown shacks in the barrio did he swear were worth a third of a million bucks? How often did he or his employees have a target number to hit? How many times did he turn a blind eye to obvious structural problems? How many times did he cherry-pick comps to hit his number? If he was in the game during the boom, I’m sure all that and more was going on because no one would have sent him business otherwise.

Now, I’m not saying the upcoming changes will improve matters. But I am saying that the appraisers have been key players in this debacle and they’ve gone down that road willingly.

[drboom]

[quote=HLS]
The change in appraisals is saying that appraisers were responsible for the housing mess. There is only a sliver of truth in that. A dishonest appraiser is still dishonest.
[/quote]

Face it, the whole appraisal “industry” is dishonest, else we would never have seen the ridiculous valuations of the recent past. Anyone with an ounce of sense could see that no matter what someone was willing to pay, and no matter what some damnfool bank was willing foist off on the MBS “investors”, a 1,000sf 3/1 shack in Da Hood isn’t worth almost a half million dollars.

The lenders needed someone to put a fig leaf over their obvious disregard for underwriting standards, and the appraisers were only too happy to oblige.

[quote=HLS]This will ruin the careers and incomes of honest appraisers. If an appraiser has been in business for 10-20 years and has dozens of banks or brokers sending them business, that stops completely on May 1st…

An appraiser with 8 employees recently told me that he is done, and 8 appraisers will be out of work. He will not get enough orders to keep them busy.[/quote]

It’s sad when times change, true. But ask your friend how much responsibility he bears for this mess. How many tumbledown shacks in the barrio did he swear were worth a third of a million bucks? How often did he or his employees have a target number to hit? How many times did he turn a blind eye to obvious structural problems? How many times did he cherry-pick comps to hit his number? If he was in the game during the boom, I’m sure all that and more was going on because no one would have sent him business otherwise.

Now, I’m not saying the upcoming changes will improve matters. But I am saying that the appraisers have been key players in this debacle and they’ve gone down that road willingly.

[drboom]

[quote=HLS]
The change in appraisals is saying that appraisers were responsible for the housing mess. There is only a sliver of truth in that. A dishonest appraiser is still dishonest.
[/quote]

Face it, the whole appraisal “industry” is dishonest, else we would never have seen the ridiculous valuations of the recent past. Anyone with an ounce of sense could see that no matter what someone was willing to pay, and no matter what some damnfool bank was willing foist off on the MBS “investors”, a 1,000sf 3/1 shack in Da Hood isn’t worth almost a half million dollars.

The lenders needed someone to put a fig leaf over their obvious disregard for underwriting standards, and the appraisers were only too happy to oblige.

[quote=HLS]This will ruin the careers and incomes of honest appraisers. If an appraiser has been in business for 10-20 years and has dozens of banks or brokers sending them business, that stops completely on May 1st…

An appraiser with 8 employees recently told me that he is done, and 8 appraisers will be out of work. He will not get enough orders to keep them busy.[/quote]

It’s sad when times change, true. But ask your friend how much responsibility he bears for this mess. How many tumbledown shacks in the barrio did he swear were worth a third of a million bucks? How often did he or his employees have a target number to hit? How many times did he turn a blind eye to obvious structural problems? How many times did he cherry-pick comps to hit his number? If he was in the game during the boom, I’m sure all that and more was going on because no one would have sent him business otherwise.

Now, I’m not saying the upcoming changes will improve matters. But I am saying that the appraisers have been key players in this debacle and they’ve gone down that road willingly.

[drboom]

[quote=HLS]
The change in appraisals is saying that appraisers were responsible for the housing mess. There is only a sliver of truth in that. A dishonest appraiser is still dishonest.
[/quote]

Face it, the whole appraisal “industry” is dishonest, else we would never have seen the ridiculous valuations of the recent past. Anyone with an ounce of sense could see that no matter what someone was willing to pay, and no matter what some damnfool bank was willing foist off on the MBS “investors”, a 1,000sf 3/1 shack in Da Hood isn’t worth almost a half million dollars.

The lenders needed someone to put a fig leaf over their obvious disregard for underwriting standards, and the appraisers were only too happy to oblige.

[quote=HLS]This will ruin the careers and incomes of honest appraisers. If an appraiser has been in business for 10-20 years and has dozens of banks or brokers sending them business, that stops completely on May 1st…

An appraiser with 8 employees recently told me that he is done, and 8 appraisers will be out of work. He will not get enough orders to keep them busy.[/quote]

It’s sad when times change, true. But ask your friend how much responsibility he bears for this mess. How many tumbledown shacks in the barrio did he swear were worth a third of a million bucks? How often did he or his employees have a target number to hit? How many times did he turn a blind eye to obvious structural problems? How many times did he cherry-pick comps to hit his number? If he was in the game during the boom, I’m sure all that and more was going on because no one would have sent him business otherwise.

Now, I’m not saying the upcoming changes will improve matters. But I am saying that the appraisers have been key players in this debacle and they’ve gone down that road willingly.

[drboom]

[quote=HLS]
The change in appraisals is saying that appraisers were responsible for the housing mess. There is only a sliver of truth in that. A dishonest appraiser is still dishonest.
[/quote]

Face it, the whole appraisal “industry” is dishonest, else we would never have seen the ridiculous valuations of the recent past. Anyone with an ounce of sense could see that no matter what someone was willing to pay, and no matter what some damnfool bank was willing foist off on the MBS “investors”, a 1,000sf 3/1 shack in Da Hood isn’t worth almost a half million dollars.

The lenders needed someone to put a fig leaf over their obvious disregard for underwriting standards, and the appraisers were only too happy to oblige.

[quote=HLS]This will ruin the careers and incomes of honest appraisers. If an appraiser has been in business for 10-20 years and has dozens of banks or brokers sending them business, that stops completely on May 1st…

An appraiser with 8 employees recently told me that he is done, and 8 appraisers will be out of work. He will not get enough orders to keep them busy.[/quote]

It’s sad when times change, true. But ask your friend how much responsibility he bears for this mess. How many tumbledown shacks in the barrio did he swear were worth a third of a million bucks? How often did he or his employees have a target number to hit? How many times did he turn a blind eye to obvious structural problems? How many times did he cherry-pick comps to hit his number? If he was in the game during the boom, I’m sure all that and more was going on because no one would have sent him business otherwise.

Now, I’m not saying the upcoming changes will improve matters. But I am saying that the appraisers have been key players in this debacle and they’ve gone down that road willingly.

[Eugene]

[quote=gn]
So, any re-sale property can potentially have unpermitted additions ? Do home inspectors typically compare public records with actual floor plans ?[/quote]

I bought a house recently ( Sheldon did the financing ) … Tax rolls said 4/2.5, but there were really 4 full bathrooms. The appraisal stated clearly “4 bathrooms”, there was no mention that any of them were unpermitted. The issue never came up. All bathrooms look perfectly normal, the appraiser probably did not bother checking the public record.

To this day, I have no idea which bathroom was added and which one was converted from half to full. I’ve been thinking to visit the county office and try to find old plans of my house … To my knowledge, neither the inspector nor the appraiser did that.

[Eugene]

[quote=gn]
So, any re-sale property can potentially have unpermitted additions ? Do home inspectors typically compare public records with actual floor plans ?[/quote]

I bought a house recently ( Sheldon did the financing ) … Tax rolls said 4/2.5, but there were really 4 full bathrooms. The appraisal stated clearly “4 bathrooms”, there was no mention that any of them were unpermitted. The issue never came up. All bathrooms look perfectly normal, the appraiser probably did not bother checking the public record.

To this day, I have no idea which bathroom was added and which one was converted from half to full. I’ve been thinking to visit the county office and try to find old plans of my house … To my knowledge, neither the inspector nor the appraiser did that.

[Eugene]

[quote=gn]
So, any re-sale property can potentially have unpermitted additions ? Do home inspectors typically compare public records with actual floor plans ?[/quote]

I bought a house recently ( Sheldon did the financing ) … Tax rolls said 4/2.5, but there were really 4 full bathrooms. The appraisal stated clearly “4 bathrooms”, there was no mention that any of them were unpermitted. The issue never came up. All bathrooms look perfectly normal, the appraiser probably did not bother checking the public record.

To this day, I have no idea which bathroom was added and which one was converted from half to full. I’ve been thinking to visit the county office and try to find old plans of my house … To my knowledge, neither the inspector nor the appraiser did that.

[Eugene]

[quote=gn]
So, any re-sale property can potentially have unpermitted additions ? Do home inspectors typically compare public records with actual floor plans ?[/quote]

I bought a house recently ( Sheldon did the financing ) … Tax rolls said 4/2.5, but there were really 4 full bathrooms. The appraisal stated clearly “4 bathrooms”, there was no mention that any of them were unpermitted. The issue never came up. All bathrooms look perfectly normal, the appraiser probably did not bother checking the public record.

To this day, I have no idea which bathroom was added and which one was converted from half to full. I’ve been thinking to visit the county office and try to find old plans of my house … To my knowledge, neither the inspector nor the appraiser did that.

[Author]

Posts