Did We Grant That Exception
True or False: there is a path forward with a legal 3-unit property and an ADU.
True: Freddie Conventional only so long as total unit count does not exceed 4. Exception basis although we'd be hard pressed to find a denied exception request.
FHA: Can we proceed with a manufactured dwelling with condo legal description? Two days till closing and seller is currently in an FHA loan.
No! Although this is overlay RKT is not proceeding with manufactured condos at this time.
Can we proceed with a holdback for septic repairs? Initial request was denied. We made it to FSO and noticed the PA made mention of an escrow holdback for septic system repairs. An inspection was furnished indicating repairs were not critical to the system currently functioning.
No! The appraisal was not subject-to inspection or repairs. Since these were not collateral required repairs needed to close, there is no holdback to issue. We recommended that the buyer and seller work together with the title company to determine if an agreement could be reached through a secondary escrow outside of our transaction.
The subject property has an empty swimming pool. I don't need to worry about this do I?
An empty swimming pool may be considered a fall hazard and an unacceptable safety deficiency. The pool is not required to be functional or filled with water, but if the appraiser cites this as a safety deficiency curing the fall risk is required. The appraiser may or may not suggest potential cures, but there are numerous acceptable ways to mitigate the risk. These include but are not limited to: safety fencing around the empty pool, keyed locking mechanisms on all points of entry to the area where the pool is located, filling the pool with dirt or sand, pool cover with adequate structural integrity to prevent a person from falling into the empty pool. Ultimately, the appraiser will determine if the empty pool is safe or unsafe, and repairs will be set based on their feedback.
When was the last time the Detroit Tigers won the World Series?
1984
HEL: 23 acre subject property.
No, a max 21 acres can be reviewed for leeway.
FHA: Can we proceed with 50.15% of units within the development being FHA insured?
No! This is not RKT overlay. There is a process to submit to HUD for review but we are not currently setup to facilitate this.
Can we proceed with a holdback for siding repairs? Initial request was denied. On the subject-to report, pictures of the siding in question reflect decorative cement board meant to give a tudor aesthetic which was attached via failing adhesive over other siding. Elements would not be seen to penetrate the structure.
Yes! We were surprised this was marked subject-to to begin with on the appraisal but since we could determine that the siding in question was decorative and would not impact weather elements penetrating the structure of the home, we were ok to proceed with an escrow holdback.
The subject property is missing flooring. That's probably fine, right?
If the subflooring is exposed in one or more rooms such that the functional utility of the subject is negatively impacted, then repair will be required. Functional utility means the ability to withstand daily wear and tear and maintain moisture resistance while also serving as a foundation for furniture and décor.
Finish this Dwight Schrute phrase: bears, beats and _____.
Battlestar Galactica
Freddie: Can we proceed with a subject manufactured dwelling and a stick built ADU that is subordinate in size to the main dwelling?
Yes, Freddie Conventional only. FYI: In a recent exception request an addendum was obtained from the appraiser to confirm the ADU was stick built since it was not immediately clear in the original report.
Team member loan with an expired HUD approval status. Can we do a spot approval?
Yes, there are multiple examples of us reaching out to the condo team for team member loans to facilitate spot approvals.
Can we proceed with an escrow holdback for foundation repairs? Team member loan who is supposed to close on departing residence two days prior to the subject property purchase three weeks from now. There was moisture in the basement at the time of the appraisal and initial inspection invoice cites a $3,500 repair estimate that the seller is willing to pay for but ETA for work to start would be mid July post-closing.
No! Once foundation repairs are started it's hard to say if the scale, scope, and cost of work will change as potential new issues are uncovered. Since there are valid concerns with the structure/foundation of the property, the interest of the borrower and RKT would be best served solving for these repairs prior to closing.
The barn/shed (outbuilding) is in rough shape. Will this be an issue?
If the outbuilding is leaning or falling over it will need to be repaired or torn down as this is a safety hazard. If the client does not want to complete either of those options, we could accept an inspection completed by a qualified professional confirming the outbuilding is safe and structurally sound.
True or false: a strawberry is not a berry.
True
Freddie Conventional: Subject manufactured dwelling with basement ADU. (Appraisal references available)
Yes, ok to proceed on Freddie conventional specifically. Generally ok on Freddie so long as the ADU is not also manufactured.
Conventional: Can we proceed with personal injury/monetary damages if maximum penalty is unknown?
No! This is not RKT overlay. We'll need to understand maximum potential damages with supplemental court documentation or an attorney opinion letter to ensure insurance coverages are sufficient with insurance company providing the defense. Multiple "no's."
Can we proceed without further foundation repairs? Appraisal was received 'subject-to' inspection/repairs based on a hole in the wall under the porch. Inspector provided a letter indicating the hole in the wall of the home was a non-structural repair. (See reference)
No! Although the inspection indicates the hole does not impact the stability of the structure the inspection does address the 'subject-to' repair issue noted by the appraiser. The inspection does initially indicate recommended repairs to avoid water penetration which was later modified to state repairs were non-structural.
The subject property has a non-functioning bathroom under renovation. Is this acceptable?
This may be acceptable if the subject has a functioning bathroom available in the common area of the home, and the condition of the non-functioning bathroom does not present a safety hazard to the occupants of the dwelling. If the only functioning bath in the home is in the master suite the appraiser is likely to determine this to be unacceptable and require the common area bathroom to be completed prior to close. The subject is required to have a functional bathroom, and repairs will be based on the appraiser’s feedback.
True or false: at face value a regular ant can survive a fall from the Empire State Building.
True. Because of their size and low mass, their terminal velocity is so slow they can survive drops from any height theoretically.
Fannie Conventional: NALT purchase from dad. A farmer has been renting a small portion of land for the recent 11 years. Client states they are not renewing the lease for the farmer as the new owner of the land. (Appraisal references available)
No, we're reviewing the property as it currently presents itself rather than borrower's stated intention of use. Additionally, NALT sale with dad and existing business relationship means current use is likely to continue.
Team member loan: looking to purchase a condo in Detroit with an all cash value master policy. TM started last month in a senior position in legal. Can we Rockpile this thing?
No! While it's possible that some extenuating circumstances could probably exist to Rockpile, this did not rise to the level of proceeding in this manner. An alternative was found with the TM using equity in other real estate to proceed with an all-cash purchase.
Partner calls to ask their question but chooses to use the following statement of fact, "We're missing drywall. That's probably fine."
If there is missing or damaged interior drywall or plaster such that the functional utility of the subject property is negatively impacted, then repair will be required. Functional utility would provide structural support, define spaces, offer privacy, or act as a barrier against elements or unauthorized entry.
True or False: my full legal name is Willard Daniel Coleman Jr.
Sorry, we'll never know.