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Meatloaf

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Reply with quote  #1 
I haven't done one of these in a long time.

Is there really not a date of inspection on this form?

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BillDing

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The 2075 is a dicey form and there are a few things you should consider prior to completing it

A big problem with this form is that is a Desktop Underwriter Property Inspection Report where the property inspection in question is to be done by a licensed appraiser who has not been trained to do a property inspection.

The instructions even state the appraiser can do the property inspection “from the street” and need only attach (1) a street map confirming location and (2) a single photograph showing the front of the subject property.

If a professional insured inspector tried to do what is essentially a drive-by and pass it off as an inspection, their company would probably blow a gasket!

Here are the questions the you must answer during your drive-by:

  1. Does the property conform to zoning regulations? How would you determine that from your car while driving by to take one photograph?

  2. Are there any apparent adverse site conditions (easements, encroachments, special assessments, slide areas, etc.)? How can you “see” an easement or a special assessment while driving by? It’s not like they are painted yellow so you can see them.

  3. Are there any apparent physical deficiencies or conditions that would affect the soundness or structural integrity of the improvements…? What the…? Only an engineer can even come close to answering a question like this and even an engineer would have to get out of the car.

  4. Are there any apparent adverse environmental conditions…? Really? You’ve got to be kidding. How can an appraiser be asked to even read this question, let alone answer it?

Now, let’s say you filled out a Form 2075 back in 2007 when a “low risk” loan funded and was then sold to Fannie or Freddie. Later, in 2010, the borrower defaulted. Fannie/Freddie then foreclosed, and when the property came back as REO, Fannie/Freddie found out there was an easement in the rear yard, obstructed by a large bush, which blocked the view of a severe slope where the foundation had started to slide revealing a few buried plastic barrels of PCBs.

This led to Fannie/Freddie sending a “put back” letter to the original lender asking to be made whole for the loss. After receiving this letter, the original lender pulls its copy of the file and reviews everything, including the Form 2075 which you signed.

Do you really think the lender is going to ignore your answers to the above list of questions, your certifications, your license, and your E&O insurance?

Pretty good odds are the lender will sue you because they cannot sue the desktop underwriter who decided to use Form 2075 in the first place.

Then to add to the problem: your E&O carrier says that you are only covered for appraisal services and not for inspection services and what you did when you filled out and signed Form 2075 was an inspection, not an appraisal. As weight for this position, your E&O carrier points to the instructions where (remember) it says Form 2075 “is not an appraisal report” & "Property Inspection Report" as the title!

This is a Catch-22 situation where nobody wins except the lawyers. This is why you should think twice before doing a 2075...that you get a fee of what? $150-$200?


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Meatloaf

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Reply with quote  #3 
The fee was 250 and I just appraised the house 6 months ago.

Why is there no "inspection date" field on the form?

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BillDing

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Reply with quote  #4 
Quote:
Originally Posted by Meatloaf

Why is there no "inspection date" field on the form?

Did you forget who's form it is?

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