Now Power

[Shaun Murray]

Hey guy’s I had a FHA inspection in which I was told by the realtor that the power was on and of course it wasn’t. The home is a foreclosure and I’m having a hard time getting the power on. Bank wants me to complete the appraisal by the end of day regardless. I was under the impression I could not complete an FHA appraisal without a full FHA inspection. Can I complete the appraisal and note that power was not on at time of inspection and electrical and water systems were not checked.
-THANKS

 

[Greg davenport]

Hey guy’s I had a FHA inspection in which I was told by the realtor that the power was on and of course it wasn’t. The home is a foreclosure and I’m having a hard time getting the power on. Bank wants me to complete the appraisal by the end of day regardless. I was under the impression I could not complete an FHA appraisal without a full FHA inspection. Can I complete the appraisal and note that power was not on at time of inspection and electrical and water systems were not checked.
-THANKS

Yes.

Note what you did, and note what was NOT done.

The UW will most likely require all utilites be on before the loan is funded, but that's not your problem yet.

Just note it and get ready for the finale inspection to be ordered. :icon_mrgreen:

 

[Shaun Murray]

So would the appraisal be subject to the following inspections

 

[Marcia Langley]

The bank is being unreasonable but you can complete the report with an extraordinary assumption (check box 4 in the reconciliation section) that all FHA items which depend on utilites of the systems will not be revealed to have value affecting defects once that evaluation is complete. If such value affecting defects were to be revealed as a result of the future inspection, your opinion of value is subject to change.

It is unlikely the lender will be able to convince FHA to waive the EA so the lender will end up having to send someone back out to the house.

That someone (probably you) will need to be paid for their work. The consumer pays.

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Now you are stuck with the quandry that the completion report is for completions and repairs only, not EAs.

If you are asked to go back out you will need a new effective date. It is a new assignment.

If there are no defects discovered your new report will be "as is".

If there are defects discovered, your new report will be "subject to repairs".

Then there will still be another completion report assignment. The consumer pays again.

 

[Blueprint]

So would the appraisal be subject to the following inspections

It would be "subject to" for me as they have impact on value. I am sure others will tell to leave it up to the lender to decide.

 

[Shaun Murray]

Thanks very much those are great answers

 

[RSW]

The bank is being unreasonable but you can complete the report with an extraordinary assumption (check box 4 in the reconciliation section) that all FHA items which depend on utilites of the systems will not be revealed to have value affecting defects once that evaluation is complete. If such value affecting defects were to be revealed as a result of the future inspection, your opinion of value is subject to change.

It is unlikely the lender will be able to convince FHA to waive the EA so the lender will end up having to send someone back out to the house.

That someone (probably you) will need to be paid for their work. The consumer pays.

=====

Now you are stuck with the quandry that the completion report is for completions and repairs only, not EAs.

If you are asked to go back out you will need a new effective date. It is a new assignment.

If there are no defects discovered your new report will be "as is".

If there are defects discovered, your new report will be "subject to repairs".

Then there will still be another completion report assignment. The consumer pays again.

Marsha, I have to disagree with you on this one. I usually agree with you on most of your posts.

Only one appraisal can be done on the subject property within six months for FHA. The first appraisal will be done CB4 and then a CIR will be rquired after the utilities have been turned on. The appraiser does not change the value on the CIR. The CIR is not another appraisal report, Just a compliance inspection.

 

[Greg Bell]

You will need to go back because it's subject to the utilities on and you checking the systems.Watch the Realtor and the Bank squirm , great fun...

 

[Marcia Langley]

Marsha, I have to disagree with you on this one. I usually agree with you on most of your posts.

Only one appraisal can be done on the subject property within six months for FHA. The first appraisal will be done CB4 and then a CIR will be rquired after the utilities have been turned on. The appraiser does not change the value on the CIR. The CIR is not another appraisal report, Just a compliance inspection.

That is correct, the appraiser does not change the value on a CIR. They only report whether checkbox 2 & 3 items are complete. But the original report has a value that is subject to the HC and/or EA check boxes. If any of those items are waived, the opinion of value is no longer valid and if anyone wants to know how that waiver might have affected value, they'd have to order a new appraisal. The new opinion of value would be on that new appraisal, not on the CIR.

The very nature of HCs and EAs are that if things turn out different than the assumptions and conditions, the opinion of value is subject to change.



That won't happen in practice because FHA would not allow those items to be waived. And if they did, they wouldn't order a new appraisal because the appraiser would just be obligated to make the same HCs and EAs again. It just wouldn't make sense; an endless loop.


Since FHA and GSE guidelines have certain required "subject to" items, the only way the reporting flow works properly is for all requirements to be taken care of in the proper order.

If the power was not on during the initial visit, the proper procedure is to re-vistit after the power has been turned on and before the report is delivered.

When proper work sequence is not followed, things get messy real fast.

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Regarding the issue of only one appraisal per six months, if the first appraisal never reached the "satisfactory completion" status, it would never be entered into the FHA Connections system. It would exist in the real world but not in FHA's system.

If this appraiser delivers one report with no utilities and is eventually sent back out after all the utilities have been turned on, there will be a new effective date. There is simply no way around that. And that will be a new appraisal. If the first appraisal had never been sent, then the new effective date would be the first appraisal.

If the

 

[CANative]

These guidelines are provided to assist in the examination of the property. To perform this analysis, the appraiser must have full access to all property improvements.

If unable to visually evaluate the improvements in their entirety, contact the lender and reschedule a time when a complete visual inspection can be performed. This includes access to the crawl space and attic. The appraiser is not required to disturb insulation, move personal items, furniture, equipment, plant life, soil, snow, ice or debris that obstructs access or visibility.

All my FHA life I've always asked about the utilities being on or not and if not on I tell them the order is on hold until THEY get the utilities on.

Appraisers do have some power over their clients.