Banks Disclosure Fraud

[Jay C. Murray]

Performed a home inspection for a client yesterday. Bank owned property. The listing says the property is on sewer. But the neighbor warns us about the drain field.

Get my septic contractor involved, the listing is incorrect. The house is on septic. He knew the house because he inspected it a couple of months back for another buyer who backed out. The drain field is in need of repair/replacement. The bank knows this. The bank even requested and received his estimate as part of the earlier deal that fell through.

But the bank gets away with claiming no knowledge of the property. The bank is in fact committing fraud by not disclosing this or other defects.

I'd love to see one the bankers do the perp walk for this.

[Amanda Smith]

Good thing they had warned you before you proceed to the area.

[Jeffrey R. Jonas]

They only get away with it if you do nothing about it. Report them to your Health Department.

[William H. Smith]

Interesting how facts seem to get lost when it is a negative for the lender. They will never get called on it as the structure is sold "as is" with "no knowledge of the property for disclosure". Would be interesting to see what would happen by sending this info to the local paper though.

[Eric C. Van De Ven]

Originally Posted by wsmith3

Interesting how facts seem to get lost when it is a negative for the lender. They will never get called on it as the structure is sold "as is" with "no knowledge of the property for disclosure". Would be interesting to see what would happen by sending this info to the local paper though.

They put the onus on the client and inspector to find things that are wrong or inaccurate. I have inspected the same home twice and on the second time, there was no disclosure. The new trick is to make the buyer do the inspection before signing the contract.
I guess they have to cut corners somewhere......to make up for shortfalls elsewhere!

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