What happens if the consultant visits the property and the entire scope of work isn't what was agreed to? What are the options? Yike's and Holy Crap as the father on "Everyone Likes Raymond" show used to say.
The consultant works with the borrower to determine a "scope of work" and that "scope of work" is what the appraisal is based on therefore it MUST be completed. Some time ago I got a call from NJ from a consultant who told me that he was called to perform Draw 1 on one of his projects with the contractor called him and indicated there was about $30,000 ready for payment. When he arrived at the job site not one single item on his "scope of work" was complete yet there was about $30,000 complete. I asked him how much he authorized the bank to pay? He did repeat the correct answer... NOTHING.
That is absolutely correct, there is nothing on the scope and the scope represents ALL of the authorized work to be completed. Two weeks later he had another job with the same situation. It is critical that the consultant convey's that there will be no deviation to the scope of work that doesn't first go through that consultant. This will go a long way to keeping your projects on track. I had to reinforce that this consultant wasn't saying something to the clients that is causing this.
I, being so very careful, always am very clear with the client... apparently not. Yes, even I, get caught now and again. I'm working one right now and the first draw wasn't happening, call after call, nothing. Finally the lender asked me to do a draw and report back as to what was happening. It was not a pretty site. The original home actually looked very plain.
Sheet metal roof, very plain looking to say the least.
imagine my shock when we weren't plannning to change the footprint and this is what I saw when I arrived. The home was much closer to the street and the entire flavor had changed...
The good thing is that it is a much better looking house but there wasn't anything done on the original scope of work.
I'll add some additional photos as it progresses and advances towards completion.