I recommend that you stop performing home inspections until you receive proper training.
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This is common to achieve a recessed floor, usually in a centrally located living room. As for why, because it is much easier than stepping a foundation down and all the exterior BS involved with siding that would go along with it. I have used these hangers in this application multiple times, engineering at its finest!
Right on both fastening and reason for dropping the joists, Marcel.