I have an interesting case in hand! I have a client - Buyer that decided to make an offer on a FSBO property. All went fine with paperwork. Seller was OK with the deal, signed the papers and we are moving along. Here is a little info on the property: double lot, double wide mobile on permanent foundation, outside city limits.

Due to the age of the property and with it being a mobile house, I strongly recommended to my client to get an inspection. She agreed. The lender also did his job by not only sending an appraiser there but also a structural engineer. The structural engineer was the first on site and said the property was sound and looked good. He went under the house and checked everything (or so we thought) and signed off on it.

Appraiser was next! He did the same thing! Everything looks good, appraised for the sales price! OK - Good news, right?

My client decided to skip the inspection based on the word of the structural engineer and the appraiser. She didn't want to spend any more money on the subject. However, I did not feel right about the deal and since I am no expert in house inspecting and even less so in mobile homes, I asked a friend of mine that is a Building Codes Inspector to come as a favor to me and at least take a look at the roof and foundation. Well, he DID! His report: the house is not sitting on a PERMANENT foundation!!! I immediately called my client and let her know about it and of course since the Seller was already present, the inspector and I let him know about it as well! My client decided that she didn't really care about the foundation. She likes the lot and the house and wants to buy it no matter what! OK, as long as she signs off that I did tell her about the facts and recommended that she either back out or lower the offer!!! I also mentioned the fact that the bank might not finance it due to this condition!

I just got word from the Lender and neither the appraiser or the structural engineer reported that the trailer is not on permanent foundation. How could they have missed it??!! Isn't it what they get trained, licensed and paid for???? I was dumbfounded! I know if I tell the lender about what I found out, it will probably blow the chances for my client in getting finanicing, but I feel that I have a responsibility to the lender to let them know! I know we only have an agency agreement with the client only, but I feel that if the bank was to fund the money under false facts, and I was aware of these adverse facts, I would become part of this mess.

I decided to write a letter to the Lender and explained to them my inspector's findings. I recommended that since the inspector's findings were different from the appraiser's and the structural engineer's, the lender should find a third party to do a final and independent investigation before finalizing the paperwork on this deal! I made sure all parties got a copy of it and needless to say both Seller and my client were not happy about it at all. I was not happy to do it either, but I felt that it was the RIGHT thing to do!