There are usually about six or seven steps involved in a property loss adjustment.
First, your public adjuster will look at the financial information you provide the adjuster. The adjuster will look at the financial statements you provide for the property. Next, your public adjuster will look at the property, including, appraised value, property tax rolls, and the annual maintenance records. They will ask questions about the condition of the property, including how it has been used, how it is used now, what the income generated by the property is, and whether there are holes in the foundation. They may also ask questions about whether the property has been renovated, whether it has been placed on the tax rolls, whether it is worth more or less than what is shown on the records, and whether or not the property has any recent activity.
The adjuster will look at the other parts of your paperwork as well, including the environmental records and the business records. The adjuster may ask questions about any environmental actions you have taken, such as any proposed or ongoing construction, any work that has been performed, and any permits that have been issued.
Your property loss adjuster will not leave alone until they are happy. If you don’t think they will be happy, you should discuss this with them. Your adjuster will consider a number of factors when deciding whether or not to approve your adjustment. Their considerations will include the property’s value, the property’s current use, whether or not you have complied with the terms of your mortgage, whether or not you have lived up to your part of the mortgage, whether or not you have followed the terms of the sale or lease, the property’s market value, the property’s condition, the seller’s credit worthiness, and your ability to pay.
It may take one or more adjustments before the final settlement is reached. When a property loss adjustment is approved, the adjuster will make a final decision about what to do with the property. This decision may be a sale, a leased sale, a leasehold sale, a deferred sale, a conditional gift, or a conservation easement. A conservation easement may be required after a sale of your property, especially if you have lived in the house for a long time. For example, if you bought your house for $200,000 and lived in it for ten years, a conservation easement may be required after the sale. There may be some exceptions, such as if you have a good reason such as building renovations that will make the house habitable again.
In addition to the conservation easement, your mortgage lender will want to know whether or not you want to fix up the house. The lender will want to have you explain to them why you want to fix it up. Most mortgage lenders will ask for a new appraisal of the house and your financial records in preparation for making a decision about the conservation easement.
If your mortgage lender approves your adjustment, and your adjuster approves the adjustment, then your lender will usually give you the keys to the house. Your lender will usually let you move in immediately. You will have to sign an agreement that you have given up your right to claim damages from a future owner. Your lender will call a meeting with you, your mortgage holder, and your adjuster to discuss any expenses your mortgage holder chooses to incur in the sale. The meeting will be held in private and you will be told that you may not discuss the outcome with anyone except to those listed on the agreement. You will be informed of any fees or expenses that your mortgage holder incurs in conducting the meeting.
