Fannie Mae Announcement 8/16/2010

Fannie Mae issued a service announcement on 8/16/2010 which provides the use of "Disaster Relief" if they suffer a "Unique Hardship" such as owning a home with problem drywall. 

Relief is available for those that suffer a financial hardship due to the costs associated with additional housing expenses and remediation.  However, proof must be provided in order to qualify (please note that our comments are provided in bold italics.  All other text is direct quotes from the Fannie Mae Announcement SVC-2010-11):

• If the mortgage loan is current, the servicer must request documentation from the borrower supporting the installation of new drywall. (We are assuming that Fannie Mae is requiring proof of remediation.) If the borrower cannot provide supporting documentation, the servicer must require a property inspection to confirm the existence of problem drywall.  (Kross Inspectors provides documentation acceptable to Fannie Mae Servicers.  However, Kross Inspectors must inspect the property PRIOR to removal of the problem drywall.)
• If the mortgage loan is delinquent and the contributory cause of the delinquency is expenses related to repairs of problem drywall, the servicer must require a property inspection to confirm the existence of problem drywall.  (Kross Inspectors provides documentation acceptable to Fannie Mae Servicers.  However, Kross Inspectors must inspect the property PRIOR to removal of the problem drywall.)
• If the mortgage loan is delinquent and the reason does not involve expenses related to repairs of problem drywall, the servicer must determine another foreclosure prevention alternative action given the reasons for the delinquency and proceed accordingly. (What does this mean to home owners that cannot afford to remediate?  This also does not provide any provisions for those that suffer financial hardship due to ongoing expenses (not remediation) involved with problem drywall homes such as medical expenses, replacing a/c coils, and many other expenses that are required to live in a home that is essentially UNINHABITABLE!)
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After preforming thousands of Chinese Drywall Inspections, our Inspectors have witnessed many distressed families with nowhere to turn when faced with a disaster such as this. 

We were first informed of Fannie Mae's decision to include Chinese Drywall as a provision under their "Disaster Relief" in February of this year.  Our hopes were that sufficient relief would be provided to allow these families to correct the problem and live out their American Dream of home ownership.  However, this service announcement only provides relief to those that have incurred an expense that typically exceeds 75% of their home's value (today's value, not the value of the home when they purchased). 

Where else can these home owners go for relief?  Until the federal government recognizes that Chinese Drywall causes a "DISASTER" within a home and renders it uninhabitable, there will be no relief available to these distressed families. 

As the first Home Inspection Firm in the country to provide Chinese Drywall Inspections and due to our comprehensive inspection protocol, all servicers of Fannie Mae and Freddie Mac do accept our Drywall Inspection Reports as sufficient documentation that a home does or does not contain defective drywall.  However, we caution consumers that many Inspectors will attempt to use this announcement as an inducement to inspect for Chinese Drywall. The inspections required under this service announcement are only required to document the presence of problem drywall PRIOR to remidiation.  "Unique Hardship" relief is only available AFTER remediation. 

To obtain a free Chinese Drywall consultation, call our Chinese Drywall Hotline 1-877-496-4662 or email Info@krossinspectors.com. 

FREE Gift Certificates For Realtors!

Last Month, Kross Inspectors implemented a new "Gift Certificate" program for Realtors.  We visited many offices and passed out Home Inspection Gift Certificates that Realtors could provide to their Clients in order to obtain discounts on Home Inspections.  Many Realtors thanked us for providing another tool that helps them build relationships with Clients! 

Due to overwhelming demand, we have decided to extend this offer to ALL Realtors in Southwest Florida.

If you would like to obtain FREE gift certificates to provide to your Home Buyers, email Info@krossinspectors.com. or call our office at (239) 677-4403

*Limited quantities available.