Home Inspector reports vs underwriter reviews, why are we in the middle?
Legal terms in the boiler plate of home inspection reports are becoming headaches for both real estate brokers and loan officers. More and more banks and lending institutions as well as appraisers are requiring to see the home inspection reports.
The same legal terms that keep Home Inspectors out of court are giving mortgage underwriters the heebbie jeebbies. A simple request or recommendation worded the wrong way can add days to your transaction and finally the catch 22; all underwriters and appraisers have different pet peeve; danger words. For instance;
- One appraiser required every strong recommendation to be completed before they would submit their appraisal. Oh wait that was just suppose to be a recommendation. (Required a 2 day extension and we almost lost an interest rate lock...)
- An underwriter equated professional, licensed, bonded contractor with being a journeyman union worker. This is because her husband was a union worker and she equated professionals with union. She requested all workers resumes and all receipts be from union shops. (OK, we got this overturned however it took a week to explain and document...)
There has to be an answer that keeps home inspectors safe from lawsuits and underwriters and appraisers satisfied.
Do you have any suggestions?
This post was authored by and this photo taken by Paul Henderson. ©2013, All Rights Reserved, This content may not be reproduced or reprinted (Except for ActiveRain Re-blogging) without express written permission of Paul Henderson, RE/MAX Professionals, Tacoma, WA.
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