Home Equity Loans and Lines of Credit. Please proof this new inspection article.

[Nick Gromicko]

Home Equity Loans and Lines of Credit.

[Gary Farnsworth]

Watch out for appraisals when it comes to home equity lines of credit. Lenders/banks are starting to require them, and are looking in detail your credit score, and in some cases, the condition of the home. I am hoping that someday these lenders and banks will require home inspections on re-fi's, reverse mortgages, and equity loans. In many cases, they should, for their own protection.

I heard of an insurance agent insure a home that was purchased by an owner with cash. Agent thought that this person had no risk, since he was purchasing the home in cash as his primary residence. One month later, a small fire occured, fireman arrived, and the windows were boarded up, due to a previous fire. Insurace agent should have at least drove by the property, or have gotten a home inspection. Would have saved him thousands.

People just do not get it when it comes to home inspections.

[Dale Duffy]

Gary,

I have been receiving a few calls from Loan Officers lately asking for inspections....I have no idea if this is a new gig or what, the Bank is even paying for the inspection.

[Nick Gromicko]

Dale writes:

I have been receiving a few calls from Loan Officers lately asking for inspections....I have no idea if this is a new gig or what, the Bank is even paying for the inspection.

Was the bank... Bank of America? I met with top execs at Bank of America to discuss why having their collateral (homes) inspected reduces defaults.

A sure way to cause a default is to give a loan to a buyer who then, after moving in, discovers he/she needs to spend a small fortune to make the home livable.

Providing financing to a buyer without demanding that the buyer first have the asset inspected... is WAY WORSE than anything a lender can do to a consumer.

[Gary Farnsworth]

............and then the buyer walks, again, because they cannot pay for the repairs. Then the bank is stuck again; a circle.

I hope Bank of America was listening. Getting a home inspection to see what the lender is putting their money into CAN save them thousands in the long term with attorney fees, bankruptcy fees, etc.

They just do not get it.

[Nick Gromicko]

They get it. But like most big things, they are slow.

Keep your head up. Everything you see in this world has to be inspected and you'll never be replaced by robot or have your job moved offshore.

[Gary Farnsworth]

Nick, thanks for the encouragement. We all need it now. My son just lost his job, and cannot make the payments on his 2003 Lexus IS300. It is for sale on cars.com. We all have a story nowadays.

[Dale Duffy]

Originally Posted by gromicko

Dale writes: Was the bank... Bank of America? I met with top execs at Bank of America to discuss why having their collateral (homes) inspected reduces defaults.

A sure way to cause a default is to give a loan to a buyer who then, after moving in, discovers he/she needs to spend a small fortune to make the home livable.

Providing financing to a buyer without demanding that the buyer first have the asset inspected... is WAY WORSE than anything a lender can do to a consumer.

Nick,

It was Wells Fargo Bank, and US Bank.

Have done inspections for both within the last two weeks.

A friend of mine also had a call from a Bank for an inspection.

But they pay from Escrow, I would never nor do I ever BILL ESCROW, but I did for these guys, payment is 99.9% guaranteed I'd have to think.

[Brian E. Kelly]

From what I have been told they are picking Inspectors here off the Local ASHI list.....

[Nick Gromicko]

I think we're pretty close to a point where Bank of America is going to require inspections. BTW, without my help, they were aware that ASHI is a known no-entrance-requirement diploma mill, and like I said, they didn't get it from me. The Cohen's have been hammering Federal agencies for quite some time in an effort to get the Feds to produce a PSA about diploma mill ASHI inspectors. I'm wondering if their efforts have made their way to the banks.

For any consumers, bankers or REALTORs who may be reading this...

Here is ASHI's 30-second, Shazam! online membership application that asks for nothing more than a valid credit card: https://www.homeinspector.org/join/a...n/default.aspx

Here is a way to search the list of ASHI members in your area to make sure your inspector isn't a diploma mill member: http://www.ashi.org/find/default.aspx

[James E. Braun, CMI]

Originally Posted by dduffy

Nick,

It was Wells Fargo Bank, and US Bank.

Have done inspections for both within the last two weeks.

A friend of mine also had a call from a Bank for an inspection.

But they pay from Escrow, I would never nor do I ever BILL ESCROW, but I did for these guys, payment is 99.9% guaranteed I'd have to think.

I have done a few for both banks, most was for VA loans. The big banks I have always gotten paid, I have not gotten paid by two mortgage companies before though.