If I don’t pay, they get the home. The bank is nothing more than a glorified rental company. If the home gets damaged, I have to pay a deductible and usually, additional money to cover the cost of the repairs.
That’s the deal you made isn’t it? You could just walk away, so many others have.
The bank has virtually no risk, or they wouldn’t have made the loan in the first place.
That’s called good buisness, maximum return / minimum risk.
Both the banks and the insurance companies are in it for the $$$ not warm fuzzy feelings, we all know this.
I have no more love for them than you. I feel the same way but it is what it is, would you do their jobs for free? (may be better but I doubt for free)
No one is asking the lenders to do anything for free.
On a standard loan, you either put down 20%, which ideally, if you fail to make one payment, the bank can foreclose on you and take your home and make money on the deal, or, less than 20% and the bank requires you get mortgage insurance, plus your original down payment, and if you default, the bank has your down-payment and gets made whole from the insurance company.
As I am sure you are aware, on a residential mortgage, the interest is paid first, aka, profit. The principle stays relatively the same for the first 10 years of a 30 year mortgage.
Most people only stay in their homes for 5-7 years, so they don’t make much money when they sell their home, certainly not as much as the bank has made in the same period of time.
The only thing that can go wrong with this system, is exactly what happened in 2007-2010. The collapse of the housing market, due to the over-inflated values of homes.
That is the biggest “pump and dump” scheme I have ever seen. And, somehow, no one is being punished for it.
When I took the mortgage brokers class for my MB license, I asked the instructor, "how do you lose money doing this? This has to be the biggest scam going:!
He said, “Now you are catching on…”!
I own a home that had a fire due to a failed FPE panel.
As inspectors we must not forget our job. FPE panels have been proven to fail to perform more often than other panels. That means a higher chance of fire and risk that could cause the injury or death of someone.
You CANNOT say a FPE panel is in good working order unless you trip every breaker and confirm they trip properly. Even then are you willing to sign off at the risk of someone else possibly dying from a fire caused by a panel proven to fail?
While it is important to take care of your clients needs, as an inspector do not omit this important fact. I would rather lose business than cause someone to lose their life.
Not according to all the data, nor the findings of the CPSC. As the lawsuit has been sealed in the State of New jersey, these types of statements are pure conjecture. And conjecture is what we need to be very wary of.
Additionally, making statements that an electrical panel is in working order is one of the most DANGEROUS statements I have ever heard. Our job is to look at the apparent condition of the panel at the time of the inspection. We do not test breakers for functionality. We do not ensure they trip. We are unqualified to perform scientific testing on these devices. We inspect and report on what we SEE.
As far as Federal Pacific is concerned, I explain the panel and breakers to the client. For all the hoopla about Stab Lock, the fact of the matter is that the CPSC halted investigating the issue, and only tested dual-pole breakers. A majority of what we would see in a typical installation is likely single pole, which were never addressed.
That nothwistanding, I inform the client of the issue, and mention the panel in the report, including a link to the CPSC. Do I automatically tell the client thhat the panel and breakers have to go? No. I inform and they decide.
There are literally hundreds of these panels installed in large condo complexes where I inspect. There are no plans on the part of the condo management association to replace them, and the buildings are insured.
Do our jobs. Inform the client. But, do not over-commit on unqualified opinions as to something being in good working order.
The new Florida 4 point requires us to certify the condition of the 4 major components. How should we answer this as it pertains to the FP
**The Florida-licensed inspector is required to certify the condition of the electrical, HVAC and plumbing systems. “Acceptable Condition” means that each system is working as intended and there are no visible hazards or deficiencies **
The “Florida licensed inspector” doesn’t have the authority to certify anything.
All the Florida Licensed Inspector is allowed to do, as per the licensing requirements, is to inspect what is required by the soon to be released SoP, or a similar SoP.
Yet another example of the Insurance companies over-stepping their boundaries as it pertains to what someone can and cannot do.
Like most other issues, once one insurance company knows of an issue the others will follow. This is the case with Federal Pacific panels and while you may get some raised eyebrows from agents you best inform you client now that you are aware of the potential for insurane denial. Our lawyers call it an inherent issue that you have knowledge of much like poly pipe or an appliance recall. If you know it…Report it.
Remember you are visually inspecting. If you don’t see any apparent defects the condition would be what you see. Make sure you list the panel brand to allow the insurance company to use the information they need.