Denied Refi by "Profits Not Chickens" Bank!

[GreenGables]

This is why I am putting a stockade fence around my property within the next year. Nobody needs to be snooping around my yard without me present.

Hi jrsckn, the insurance agent came to the house to inspect it because I switched to GEICO from MetLife since we were refinancing our home. I was present for the inside inspection but I did not go outside with him when he inspected the outside of our home. I was wondering what was taking him so long outside the house. He was probably counting chickens a few times over to make sure he had the exact count. He took an unbelievable number of pictures inside and outside the house.

I just hope our old insurance will reinstate us. A stockade fence does sound like a good idea.

 

[jrsckn]

Hi jrsckn, the insurance agent came to the house to inspect it because I switched to GEICO from MetLife since we were refinancing our home. I was present for the inside inspection but I did not go outside with him when he inspected the outside of our home. I was wondering what was taking him so long outside the house. He was probably counting chickens a few times over to make sure he had the exact count. He took an unbelievable number of pictures inside and outside the house.

I just hope our old insurance will reinstate us. A stockade fence does sound like a good idea.

I know, it's required with most ins companies now. I've had issues with agents showing up unannounced though and recieved a letter in the mail about issues they found. No one has a right to walk my property without my permission and I intend to make sure no one has access.

 

[GreenGables]

Thank you for your reply jrsckn. God bless you.

 

[rrrmamma]

Fences might not help. Yesterday the county appraiser showed up unannounced to tell us they are doing reappraisals for taxes and from the "aerial shots" they obtained they noticed we had two barns that were not listed on prior appraisals. Well, the barns have been here since right after we built the house four years ago and they are pre-built and on skids. He had to come down to check it out because it seems if they are on skids and "temporary" they do not affect the value of the property. If they are permanent structures they do and they need to be permitted. I guess there are no privacy rights anymore. They can fly over at any time and use the photos as an excuse to come on the property. The gates are going up soon. Don't know what we can do about planes. My Dh assured him that the chicken coop and our gazebo are on skids also. We live in an agricultural district. I hope my new homeowners insurance doesn't cancel us for chickens!!!!

 

[ReikiStar]

I applaud you.

X's 2!

 

[wolfpak]

Okay, absolutely HATE the Big-brother society we've turned into.
However, the problem you likely ran into is that if you have any ag activity on your tax returns then you have officially become a mixed use, vs. strictly residential usage property, as far as loan criteria is concerned. This definitely changes the situation. You have now entered a non-standard category, and its not (I believe) gonna get FHA approval.... yada, yada.

Looked into the refi thing a while back... we were only looking to refi on about 1/4 of the value, in other words, about 75% down, but since we have a few cattle, & take deductions for "farm expense," no go on standard loan underwriting! Fortunately I only lost the amount of time I wasted on that phonecall.

You will likely find a local place, particularly one that does not sell their loans, who will be more than happy to assist you. So sorry you learned this the hard way. The loan-nazis are out of control, IMHO! DD & her spouse recently purchased a place, and it was absurd. They are as squeeky clean low risk as they come, stellar credit, & still.... shades of the Spanish Inquisiton.

 

[Southern Oregonihens]

The bank has a right to deny you for a silly reason. You have the right to switch banks. DO IT. Join a credit union. Then you are an owner of your own bank. re: jrsckn: No one is superseding the law here, they are just denying a refi. Much difference. I hate banks, thats why I don't play there...

 

[Jeanniejayne53]

We're in the process of chaning banks, and then plan to refi with USAA. Hope we don't have the problems some others have had. I guess every bank or organization has some issues.

 

[sfw2]

Thanks ever so much for your reply, Mom's Folly. We'll definitely go with USAA after reading your reply. Our PNC Refi guy told us that the problem was that if they wanted to sell our mortgage. Fannie Mae would have problems with any agricultural enterprise. One year my husband claimed our chickens as a business -- and actually we could make a (very small) profit every few years, selling eggs, and qualified, but this was what set that one underwriter off. I sent them seveal articles on how chickens were the new cool pet, how enlightened cities had coop tours, etc. And even though we said we had given this up as a business, tax-wise, that wasn't enough for Profits Not Chickens, and Fannie Mae was the reason. So USAA it will be! Thanks, BYC!!! The ability to get feedback from our friends around the country and world via these forums makes a huge difference! Without you, it would be a much, much colder world.

This is BS. Unless you used farming income to qualify, Fannie Mae would have NO issue with your owning chickens in a rural area. Perhaps PNC's underwriting staff would benefit from reading Fannie Mae's property review guidelines:

Property Location

Fannie Mae will purchase or securitize mortgages that are secured by residential properties in urban, suburban, or rural areas.
To be eligible for purchase or securitization, mortgage loans must be secured by properties that are residential in nature—based on the characteristics of the subject property, zoning, and the present land use.
Fannie Mae does not purchase or securitize mortgages on the following property types:

• agricultural-type properties such as farms, orchards, or ranches,
• undeveloped land,
• land development-type properties,
• properties that are not suitable for year-round occupancy regardless of location, and
  Note: Certain aspects of the location of a property will require special consideration. For example, properties in resort areas that attract people for seasonal or vacation use are acceptable only if they are suitable for year-round use.
• properties that are not readily accessible by roads that meet local standards.