does anyone know if the home inspection report goes to the bank/appraiser?
None of my inspection reports have ever gone to the lender or appraiser. The buyer typically pays for the report so it belongs to the buyer.
Normally it is private to the purchaser. If you use it to wiggle out of the contract or demand corrective action, you will have to provide a copy to the seller.
"Normally it is private to the purchaser. If you use it to wiggle out of the contract or demand corrective action, you will have to provide a copy to the seller.Normally it is private to the purchaser. If you use it to wiggle out of the contract or demand corrective action, you will have to provide a copy to the seller."
That's what we thought too. We didn't get a copy with the house we sold three years ago. Our realtor said it was a gray area and wouldn't force the other party to produce a copy. The buyers only comment was "Didn't like the inspection."
Home inspection reports do not go to the bank. Banks don't require a home inspection. Some banks require a pest inspection and some a water test, but thats about it.
Legally, the report is yours...as you hired the HI, and you paid for the inspection; therefore you are the only person with the right to give the report to another person or entity.
However, not all HI's can be trusted in this respect. Many give it to realtors, banks, insurance companies, etc. usually without the buyers knowledge.
Best bet is to tell your HI up front in no uncertain terms that you don't want him to give your report to anyone but you....and hope for the best.
In my state of Oregon, they go to the person who is paying for it, usually the buyer. Also, we recently had a home inspection and found out we couldn't pay the inspector until after he produced the report and sent us an invoice. No prepay.
I was just curious. People I talked to generally assumed the bank gets everything.
my concern is I'm looking at a house in bad shape that needs additonal structural support which will require significant work. it will be priced into my offer as essentially I would be offering land value for it.
A) I don't want having that documented make the property unmortgageable.
B) Depending on how it looks when we start taking things apart to remodel, its about 50/50 whether we keep the house or need to remove and replace completely. I'm not really sure how that factors into the mortgage.
How bad shape? A real estate appraiser should notice if the house obviously needs additional structural support. I've seen many appraisals where the appraiser has noted something he didn't think was quite right and requested a structural engineer to look at the property.
If you have a mortgage on a property, and suddenly the house is no longer there, which is what the bank is really mortgaging .. not the land. I would think that the bank would call the loan.
Maybe you should just do a rehab loan.
pam makes a valid point. Even though the mortgage company doesn't get a copy of the inspection report, the appraiser will make his appraisal report based on what he sees. If he sees the house is missing the roof, kitchen, front porch, or has obvious structural damage etc. he's going to make that known to the bank. The appraiser doesn't do an inspection of all the electrical, mechanical or plumbing etc. but will notice obvious flaws in the home and his valuation of the home and your ability to get a mortgage will be based in part on that appraisal.
I probably need a diffeernet type of loan.
ultimately the house looks fine to an untrained eye on the main level. However there are sections of the main suppoting beam that were cut out, and the supports in other areas are faltering.
I guess I was assuming they are mortgaging the land. in my opinion the house really adding 5% of the value of the purchase
which is what the bank is really mortgaging .. not the land. I would think that the bank would call the loan
Depends on the institution. And the situation.
As a builder, I've borrowed a number of times on the value of the existing property, then torn down the home and built a new home. As a legal matter, the lender could call the loan if the demolition came to their attention; as a practical matter, as long as all taxes and payments are made, they don't know and don't care. I'm always aware that if they call the loan, I will have to make alternative financing arrangements.
In my area, the lender is certainly lending on the land it is usually a higher value than the building. I own several properties where the building value is a fraction of the land value.
Yes, the bank appraiser will note the condition of the house.
My friend who is a lawyer scared me out of it. I was thinking of esentially taking Worthy's position on the matter, it made sense. Also from a practical matter whether they know it or not, the bank is really lending on the land value.
However, legally entering into a mortgage like that with the intention of pulling the house down could be considered mortgage fraud. I never really thought of it in that perspective. Whether anyone finds out is up in the air.
ultimately even if my intentions are on the up and up, if this was viewed in this manner, and caught, I could lose my professional license, so I'm going to pass.