[GSBN] TLS -Putting a Project Together

[Derek Roff]

I suppose the risk of having financing revoked is fairly small.  But 
using this strategy for insurance could easily mean paying for 
insurance for years, and then finding out that you don't have any, in 
the case of major or catastrophic damage to the house.  Insurance 
companies have a financial motivation to avoid paying claims.  If they 
have a defendable position to say that they were misled in the 
insurance application, they can choose not to pay, in the case of a 
fire or major structural damage.  The owner then has to sue, and see 
what the courts decide.

I wouldn't want to be in a lawsuit with an insurance company in any 
case, but especially not if I was waiting for payment, in order to 
repair my seriously damaged home.  In some cases, the lender might be 
on the home owner's side, trying to get the insurance company to pay, 
in order to defend their asset/collateral.  But is seems possible that 
in the scenario being discussed, the lender might decide that they had 
been misled as well, and immediately demand full payment of the 
mortgage.  Refinancing wouldn't be an option, right after major damage. 


The decision of whether to pay for insurance, or not, is something of a 
gambling proposition in the best of circumstances. Paying for insurance 
that probably wouldn't pay out when needed seems like stacking the deck 
against yourself.

Derelict

Derek Roff
Language Learning Center
Ortega Hall 129, MSC03-2100
University of New Mexico
Albuquerque, NM 87131-0001
505/277-7368, fax 505/277-3885
Internet: derek at unm.edu


--On Monday, September 6, 2010 1:41 PM -0700 stoneandstraw 
<stoneandstraw at earthlink.net> wrote:

All,
In 1999, I went through five potential lenders before I figured out
Chris' strategy.  I erased the words straw bales from every page of
my plans except the front page notes.  Of the ~35 notes, three of
them mentioned straw bales, but after the fifth lender turned me
down, all of the other pages (sections through, paln views, details)
simply said "cellulose insulation").  By leaving the notes on the
front page, I was clearly not lying to the lenders, but rather taking
advantage of the fact that they usually don't read the notes - until
it is too late to change their minds.  Less than two hours before we
were to sign the loan docs, the lender called my up, freaking out
about "straw bales."  I held his hand on the phone for nearly 45
minutes, but I am convinced that what made the difference was that he
was too embarassed to tell his superiors that he had missed this
"vital detail" until the day of the signing.   BTW, after my house,
this lender made a specialty of lending on "green" projects.  I lost
touch with him after a few years, so I don't know if he kept it up,
but for at least a while, he was really proud of the being the "green
lender" for our area.  %^}
Getting the permit was relatively easy.  Ours was the first straw
bale home in Placer County and when I brought my plans in, the CBO
said to me, "we were wondering when we'd see you."  ...not meaning
me, myself; but rather the first straw bale home applicant.  I am
sure it helped some that I was on the Board of CASBA and had writtne
the report for the CEC on the thermal properties of straw bale walls,
but I am also very confident that even w/o those advantages, it would
not have been a big "sle" to get them to issue the permit.
Best,
Nehemiah


----- Original Message -----
From: Chris Prelitz
To: gsbn at greenbuilder.com
Sent: Tuesday, August 31, 2010 11:21 AM
Subject: Re: [GSBN] TLS -Putting a Project Together

Hi Joyce and friends,
I'll pipe in on a strategy I've found useful for both insurance and
financing (after lurking here for eons.) This may be old news - but
just in case:

Paper pushers at most regulatory, permitting, and banking
institutions typically want a project to fit into a nice neat little
box
where they can check off that everything is in order. Say the scary
straw word or write strawbale on a form,
and there's a good chance you'll raise a red flag, need stacks more
paperwork, maybe even trigger a higher rate,
 or get a thumbs down altogether. I avoid using the word 'straw'
whenever possible with those chaps.

On insurance and finance applications, my home is wood framed and
insulated with organic cellulose material with a 1 hour fire rating.
Wood, wood frame, and cellulose are all on their forms. I haven't
seen the word strawbale on insurance or mortgage applications - yet.
Sure it's a wee bit nefarious and doesn't forward the widespread
acceptance of straw-bale - but if there's no other way - it can work.

More later


Christopher Prelitz
Prelitz + Partners

1215 Bluebird Canyon Drive
Laguna Beach, Ca. 92651
p  949 494 6353
www.Prelitz.com