How do lenders deal with houses with un-permitted additions

[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.

[HLS]

Your anger is justified, but misplaced.
An appraisers job isn’t to give their opinion about a shack in da hood, it’s to report what the previous fool paid.

An honest appraiser bears NO responsibility in this mess.
The govt allowed this to happen. Sales people were doing their jobs, many of them simply believing that they were doing the right thing.
Clueless sheep who BELIEVED that the rising prices
were valid.

Face it, many people are overpaid for what they do.
Until something like this blows up, people just think that they are “worth” what they are paid.
They are screwing their customers in exchange for a part of the profits.

People who sell cars, paper, equipment, real estate, or anything else are usually trying to sell as much as they can to make their commissions, with no regard of what benefit it is to the buyer.

There is such a thing as adding value to someones life, which is what I attempt to do. Many people are simply stubborn and ignorant and aren’t going to change.
Welcome to uneducated America.
Check out this video, it’s edited. The UNedited version is available on YOUTUBE… http://www.youtube.com/watch?v=fsDuL4jTkz0

[HLS]

Your anger is justified, but misplaced.
An appraisers job isn’t to give their opinion about a shack in da hood, it’s to report what the previous fool paid.

An honest appraiser bears NO responsibility in this mess.
The govt allowed this to happen. Sales people were doing their jobs, many of them simply believing that they were doing the right thing.
Clueless sheep who BELIEVED that the rising prices
were valid.

Face it, many people are overpaid for what they do.
Until something like this blows up, people just think that they are “worth” what they are paid.
They are screwing their customers in exchange for a part of the profits.

People who sell cars, paper, equipment, real estate, or anything else are usually trying to sell as much as they can to make their commissions, with no regard of what benefit it is to the buyer.

There is such a thing as adding value to someones life, which is what I attempt to do. Many people are simply stubborn and ignorant and aren’t going to change.
Welcome to uneducated America.
Check out this video, it’s edited. The UNedited version is available on YOUTUBE… http://www.youtube.com/watch?v=fsDuL4jTkz0

[HLS]

Your anger is justified, but misplaced.
An appraisers job isn’t to give their opinion about a shack in da hood, it’s to report what the previous fool paid.

An honest appraiser bears NO responsibility in this mess.
The govt allowed this to happen. Sales people were doing their jobs, many of them simply believing that they were doing the right thing.
Clueless sheep who BELIEVED that the rising prices
were valid.

Face it, many people are overpaid for what they do.
Until something like this blows up, people just think that they are “worth” what they are paid.
They are screwing their customers in exchange for a part of the profits.

People who sell cars, paper, equipment, real estate, or anything else are usually trying to sell as much as they can to make their commissions, with no regard of what benefit it is to the buyer.

There is such a thing as adding value to someones life, which is what I attempt to do. Many people are simply stubborn and ignorant and aren’t going to change.
Welcome to uneducated America.
Check out this video, it’s edited. The UNedited version is available on YOUTUBE… http://www.youtube.com/watch?v=fsDuL4jTkz0

[HLS]

Your anger is justified, but misplaced.
An appraisers job isn’t to give their opinion about a shack in da hood, it’s to report what the previous fool paid.

An honest appraiser bears NO responsibility in this mess.
The govt allowed this to happen. Sales people were doing their jobs, many of them simply believing that they were doing the right thing.
Clueless sheep who BELIEVED that the rising prices
were valid.

Face it, many people are overpaid for what they do.
Until something like this blows up, people just think that they are “worth” what they are paid.
They are screwing their customers in exchange for a part of the profits.

People who sell cars, paper, equipment, real estate, or anything else are usually trying to sell as much as they can to make their commissions, with no regard of what benefit it is to the buyer.

There is such a thing as adding value to someones life, which is what I attempt to do. Many people are simply stubborn and ignorant and aren’t going to change.
Welcome to uneducated America.
Check out this video, it’s edited. The UNedited version is available on YOUTUBE… http://www.youtube.com/watch?v=fsDuL4jTkz0

[HLS]

Your anger is justified, but misplaced.
An appraisers job isn’t to give their opinion about a shack in da hood, it’s to report what the previous fool paid.

An honest appraiser bears NO responsibility in this mess.
The govt allowed this to happen. Sales people were doing their jobs, many of them simply believing that they were doing the right thing.
Clueless sheep who BELIEVED that the rising prices
were valid.

Face it, many people are overpaid for what they do.
Until something like this blows up, people just think that they are “worth” what they are paid.
They are screwing their customers in exchange for a part of the profits.

People who sell cars, paper, equipment, real estate, or anything else are usually trying to sell as much as they can to make their commissions, with no regard of what benefit it is to the buyer.

There is such a thing as adding value to someones life, which is what I attempt to do. Many people are simply stubborn and ignorant and aren’t going to change.
Welcome to uneducated America.
Check out this video, it’s edited. The UNedited version is available on YOUTUBE… http://www.youtube.com/watch?v=fsDuL4jTkz0

[drboom]

[quote=HLS]Your anger is justified, but misplaced.
An appraisers job isn’t to give their opinion about a shack in da hood, it’s to report what the previous fool paid.[/quote]

Bzzzt, sorry … no.

Here’s what the FHA has to say in their appraiser’s handbook:

D. ECONOMIC TRENDS
The appraiser must give consideration to, and include in the value analysis, the economic trends of a neighborhood and the general area, including:

• price and wage levels (the purchasing power of community occupants)
• employment characteristics
• the current supply and demand for residential dwellings, including projects under construction
• taxation levels
• building costs
• population changes
• activity of real estate sales market and mortgage
  interest rates

No, the FHA isn’t the whole market. But I doubt they are out of step with prevailing (and mostly theoretical) professional standards.

I agree with you that in practice appraisers try to find whatever comps will support the desired value, but to just “report what the previous fool paid” is a clear violation of professional standards and ought to result in loss of license.

[drboom]

[quote=HLS]Your anger is justified, but misplaced.
An appraisers job isn’t to give their opinion about a shack in da hood, it’s to report what the previous fool paid.[/quote]

Bzzzt, sorry … no.

Here’s what the FHA has to say in their appraiser’s handbook:

D. ECONOMIC TRENDS
The appraiser must give consideration to, and include in the value analysis, the economic trends of a neighborhood and the general area, including:

• price and wage levels (the purchasing power of community occupants)
• employment characteristics
• the current supply and demand for residential dwellings, including projects under construction
• taxation levels
• building costs
• population changes
• activity of real estate sales market and mortgage
  interest rates

No, the FHA isn’t the whole market. But I doubt they are out of step with prevailing (and mostly theoretical) professional standards.

I agree with you that in practice appraisers try to find whatever comps will support the desired value, but to just “report what the previous fool paid” is a clear violation of professional standards and ought to result in loss of license.

[drboom]

[quote=HLS]Your anger is justified, but misplaced.
An appraisers job isn’t to give their opinion about a shack in da hood, it’s to report what the previous fool paid.[/quote]

Bzzzt, sorry … no.

Here’s what the FHA has to say in their appraiser’s handbook:

D. ECONOMIC TRENDS
The appraiser must give consideration to, and include in the value analysis, the economic trends of a neighborhood and the general area, including:

• price and wage levels (the purchasing power of community occupants)
• employment characteristics
• the current supply and demand for residential dwellings, including projects under construction
• taxation levels
• building costs
• population changes
• activity of real estate sales market and mortgage
  interest rates

No, the FHA isn’t the whole market. But I doubt they are out of step with prevailing (and mostly theoretical) professional standards.

I agree with you that in practice appraisers try to find whatever comps will support the desired value, but to just “report what the previous fool paid” is a clear violation of professional standards and ought to result in loss of license.

[drboom]

[quote=HLS]Your anger is justified, but misplaced.
An appraisers job isn’t to give their opinion about a shack in da hood, it’s to report what the previous fool paid.[/quote]

Bzzzt, sorry … no.

Here’s what the FHA has to say in their appraiser’s handbook:

D. ECONOMIC TRENDS
The appraiser must give consideration to, and include in the value analysis, the economic trends of a neighborhood and the general area, including:

• price and wage levels (the purchasing power of community occupants)
• employment characteristics
• the current supply and demand for residential dwellings, including projects under construction
• taxation levels
• building costs
• population changes
• activity of real estate sales market and mortgage
  interest rates

No, the FHA isn’t the whole market. But I doubt they are out of step with prevailing (and mostly theoretical) professional standards.

I agree with you that in practice appraisers try to find whatever comps will support the desired value, but to just “report what the previous fool paid” is a clear violation of professional standards and ought to result in loss of license.

[drboom]

[quote=HLS]Your anger is justified, but misplaced.
An appraisers job isn’t to give their opinion about a shack in da hood, it’s to report what the previous fool paid.[/quote]

Bzzzt, sorry … no.

Here’s what the FHA has to say in their appraiser’s handbook:

D. ECONOMIC TRENDS
The appraiser must give consideration to, and include in the value analysis, the economic trends of a neighborhood and the general area, including:

• price and wage levels (the purchasing power of community occupants)
• employment characteristics
• the current supply and demand for residential dwellings, including projects under construction
• taxation levels
• building costs
• population changes
• activity of real estate sales market and mortgage
  interest rates

No, the FHA isn’t the whole market. But I doubt they are out of step with prevailing (and mostly theoretical) professional standards.

I agree with you that in practice appraisers try to find whatever comps will support the desired value, but to just “report what the previous fool paid” is a clear violation of professional standards and ought to result in loss of license.

[HLS]

Dr Boom,,, BZZT right back at you.
What do you think that “current supply and demand is” ??

I don’t know where you fall into the mix, are you in the mortgage/real estate/appraisal business ?

Reporting what previous transactions were is exactly how valuations are done in both a rising and falling market.

What you call a “clear violation” is them doing their job… BZZZT BZZZT

[HLS]

Dr Boom,,, BZZT right back at you.
What do you think that “current supply and demand is” ??

I don’t know where you fall into the mix, are you in the mortgage/real estate/appraisal business ?

Reporting what previous transactions were is exactly how valuations are done in both a rising and falling market.

What you call a “clear violation” is them doing their job… BZZZT BZZZT

[HLS]

Dr Boom,,, BZZT right back at you.
What do you think that “current supply and demand is” ??

I don’t know where you fall into the mix, are you in the mortgage/real estate/appraisal business ?

Reporting what previous transactions were is exactly how valuations are done in both a rising and falling market.

What you call a “clear violation” is them doing their job… BZZZT BZZZT

[HLS]

Dr Boom,,, BZZT right back at you.
What do you think that “current supply and demand is” ??

I don’t know where you fall into the mix, are you in the mortgage/real estate/appraisal business ?

Reporting what previous transactions were is exactly how valuations are done in both a rising and falling market.

What you call a “clear violation” is them doing their job… BZZZT BZZZT

[Author]

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