Discussion in 'FHA/HUD and VA' started by joey heydt, Aug 27, 2009.
We found this shed the other day on an FHA inspection. Would you call for its removal?
Absolutely -- call for repair or removal. It is a safety hazard.
Appraisers don't have the authority or responsibility for "calling for removal."
If your boss doesn't know the answer then your boss should withdraw from the assignment.
Wood in contact with ground, does not meet MPRs, condition subject to repair.
Rotten storage shed has no value. I don't know if they require it removed. I would red flag it and suggest it should be removed. I don't think it is a 'safety' hazard per se.
Defective paint anywhere on the subject property is an automatic "subject to repair" conditon per the HUD manual on any 1978 property (lead), it is definitely a safety hazard (poison).
4150.2 paragraph 1 states "Observe all interior and exterior surfaces .... for defective paint. (exterior srfaces include surfaces on fences, garages, storage sheds, and other outbuildings..) Note any affected areas and condition the appraisal upon their repair."
Made pretty clear here (unuaually enough), but rarely followed through on in my review experience.
Value doesn't matter, read the HUD manual 4150.2 page D28 paragraph 1. To summarize, defective paint noted on fences, storage sheds or any outbuilding requires conditioning subject to repair on any pre 1978 residence. In my opinion if the building is removed, problem solved, if it is repaired, likewise. Is it my job to determine what the least expensive course of action is? Nope. The building has no value in its current condition but per clearly laid out HUD guidelines is a safety hazard that must be repaired. Shoot em all and let the devil sort em out.
May not be a safety issue but could effect future marketability. If HUD forecloses they would have to repair it or tear it down - so does the seller.
I'll bet that storage shed was built well after 1978. They don't last long.
I amazes me how many times I have heard, or read in appraisal reports that a shed or other detached structure that is in poor condition is referred to as "not given contributory value", or "has no value" etc.. All improvements on the property should be mentioned and if there is a condition issue it should be described (in my opinion). A building in poor condition could realistically have negative market value (cost to remove and the hassle of) which is contributory value, just in the negative direction.