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Fuel Oil Tanks

Discussion in 'Urgent - Help Needed' started by Lanny Freng, Mar 2, 2006.

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  1. Lanny Freng

    Lanny Freng New Member

    0
    Nov 15, 2005
    got a file being written to FNMA guidelines, This home has a fuel oil tank on the interior of the home. I am pretty sure FHA wouldnt allow this but would FNMA have a say in it? Thanks for any input...

    Lanny
     
  2. Proactive

    Proactive Senior Member

    59
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    Oil is a common heating fuel in our area; I have appraised many oil-heated homes where the loans were being sold on the secondary market. No problem with FHA, either.

    It's those pesky underground gasoline storage tanks you have to look out for!
     
  3. Greg Parker

    Greg Parker Member

    0
    Mar 20, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    In Philadelphia region, Oil is super common as a heating fuel for suburban homes. Probably half of the oil heated homes I see have the tanks in the basement (including my own home). I typically take a picture and comment on it, but I have yet to have anything get kicked back because of this fact.

    The wife is FHA certified, and she said there is no problem with it, but again... you can c.y.a. by commenting.
     
  4. Ray Miller

    Ray Miller Elite Member

    0
    Feb 20, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin
    Oil is common out here also. If it is an older home and older oil storage tank in the basement. Just be sure it has not leak on to the floor. If its an in ground tank I would take a picture of the fill pipe.

    I would note that it is oil fired furance.
     
  5. JTip

    JTip Senior Member

    183
    Oct 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    I concur....see above :)

    The benefit of having your tanks inside is that you save 2-4 cents a gallon because the outside tanks need an additive to the fuel oil to keep it "liquidy".
     
  6. Hal Mann

    Hal Mann Senior Member

    0
    Jan 19, 2005
    Professional Status:
    Certified General Appraiser
    State:
    New York
    In fact, the trend is back to locating fuel oil tanks inside the home rather than buried in the yard. The potential for environmental contamination from leaking underground tanks (yes, fuel oil, too) has become a bigger and bigger issue around here. I've seen plenty home sales unravel over these problems. I would think potential lenders nowadays would prefer indoor tanks. I know my bank does.
     
  7. William Casewell

    William Casewell New Member

    0
    Feb 7, 2006
    DEPRECIATION SECTION

    A free standing oil storage tank was located in the unfinished section of the basement and displayed no signs of leakage or deterioration on the day of inspection.
     
  8. Charlotte Dixon

    Charlotte Dixon Senior Member

    0
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    I agree with you, they are typical in basements around here. But, I check to see if there's any leakage around that tank. Sometimes, the whistle doesn't sound when the delivery man is filling the tank from the outside spout. I've seen tanks run over into the basement. In fact, one oil man filled a tank and after 275 gallons it still wasn't full. Come to find out, he had the wrong house, which had converted to gas heat. There was no oil tank in the basement. That sure was a mess.
     
  9. Kevin A. Spellman

    Kevin A. Spellman Senior Member

    0
    Aug 30, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    Home heating oil tanks must have an exterior fill and an exterior vent. The vent from the tank must be higher than the fill, typically greater than 4 inches. If the presence of oil fired heating system is not typical and the servicing agents are no readily available then comments should be made and state what is the typical source of heat.

    In MA the market pays a premium for either oil or gas and reacts with a penalty for electric heat. Market reaction is the measurement for both value and marketability.
     
  10. Richard Carlsen

    Richard Carlsen Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Michigan
    Interior tanks are less of a problem than buried tanks.

    Look up LUST. Leaking Underground Storage Tanks. There are two kinds: Those that have leaked and those that have not leaded yet.

    Fuel oil can be stored inside and outside above ground safely. Just do a check under the tank and the filter to see if there are any leaks.

    FNMA does not care.

    But watch FHA for propane gas furnaces in crawl spaces. They are now a no-no.
     
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