FHA Missing Garage Door

[Wyoming]

Subject is 88 years old and is being used for a FHA reverse mortgage. Home is in bad shape including leaking roof, peeling paint (inside and out), and inadequate crawl space. These are all conditions which would not allow this home to qualify for FHA until fixed.

However, I am not sure if a missing garage door should be included in this grociery list going along with the appraisal. Subject has two car garage with concrete pad, no insulation and only one of the two doors that should be there. (FYI- I am referring to the doors the cars go through.)

4905.1 REV-1 Chapter 2 Section 8 states:

"DEFECTIVE CONDITIONS. Defective construction, poor
workmanship, evidence of continuing settlement, excessive
dampness, leakage, decay, termites, or other conditions
impairing the safety, sanitation or structural soundness of
the dwelling shall render the property unacceptable until
the defects or conditions have been remedied and the
probability of further damage eliminated."

Does this impair safety, sanitation or structural soundness?

Thanks.

 

[Ken B]

Sounds like you have a one-car garage and a one-car carport.

 

[RSW]

I agree with Kenneth. The garage door is does not appear to effect the safety,security, or soundness of the subject property unless the door from the dwelling going to the garage is absent or does not have a lock. If that be the case then call for a door or lock to be installed.

I am interested in getting more information about the rest of the dwelling. Do the MPR repairs total more than $5,000? If they do, then the subject will not qualify for FHA but may be eligible for the FHA 203(k) program.

 

[Wyoming]

I don't believe the MPR repairs will be more than $5000. The bulk of the cost is in the roof which shouldn't be over $3500. However, I am new to FHA appraising and am curious what you do if the repairs are over $5000? Do I just put it in the lenders court?

I do a lot of work in rural areas and don't like driving an hour to find out a property isn't going to work. Like when the owner swears it isn't a manufacture and you show up and it has wheels still on it. How do you "screen" properties for FHA qualifications over the phone with homeowners to make sure you aren't wasting your precious time and gas?

Also, this a reverse mortgage instead of a purchase so would it be elgible for a 203(k)?

Thank you.

 

[RSW]

We don't screen them. We just report what is there.

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No, there is a difference between a reverse mortgage and a 203(k) loan. Reverse mortage appraisals are done the same way a purchase would be done. A 203(k) appraisal has two values: AS IS and AS REPAIRED.

 

[Metamorphic]

I agree with Kenneth. The garage door is does not appear to effect the safety,security, or soundness of the subject property unless the door from the dwelling going to the garage is absent or does not have a lock. If that be the case then call for a door or lock to be installed.

Agree....for the most part.

Depending on the climate, and how the interior of the garage is protected form the elements, the garage door could be viewed as an (absent) element of weather proofing. Basically if you say "there's a lock, its a carport", you'd want to meet the "weather proofness" standards of a carport.

 

[Brad Pack]

Subject is 88 years old and is being used for a FHA reverse mortgage. Home is in bad shape including leaking roof, peeling paint (inside and out), and inadequate crawl space. These are all conditions which would not allow this home to qualify for FHA until fixed.

However, I am not sure if a missing garage door should be included in this grociery list going along with the appraisal. Subject has two car garage with concrete pad, no insulation and only one of the two doors that should be there. (FYI- I am referring to the doors the cars go through.)

4905.1 REV-1 Chapter 2 Section 8 states:

"DEFECTIVE CONDITIONS. Defective construction, poor
workmanship, evidence of continuing settlement, excessive
dampness, leakage, decay, termites, or other conditions
impairing the safety, sanitation or structural soundness of
the dwelling shall render the property unacceptable until
the defects or conditions have been remedied and the
probability of further damage eliminated."

Does this impair safety, sanitation or structural soundness?

Thanks.

FHA does not accept partially completed properties. "Subject to" installation of garage door.

 

[JSmith43]

We don't screen them. We just report what is there.

-----------------------------------------------------

No, there is a difference between a reverse mortgage and a 203(k) loan. Reverse mortage appraisals are done the same way a purchase would be done. A 203(k) appraisal has two values: AS IS and AS REPAIRED.

But that is a great idea for a new product! A 203K/RM!!

The LO that took the application ought to be shot (metaphorically), if he/she doesn't have a back-up plan for potential repairs. If you are sizing up a HECM RM for someone, probing questions about condition should be part of the plan.

Maybe it isn't a surprise and they have a reserve of funds or a contractor willing to do the work and wait until closing to get paid. Just call it like you see it. Call the pre-78 peeling paint, call the missing door, and condition for the roof to be certified/whatever. Make the UW sort it out, but give the UW a clear and complete description. Put potential repairs in fair context, include lots of photos.

 

[Couch Potato]

FHA does not accept partially completed properties. "Subject to" installation of garage door.

I think it is a very good idea to follow this advice. :new_smile-l:

 

[Dirty Harry]

I don't believe the MPR repairs will be more than $5000. The bulk of the cost is in the roof which shouldn't be over $3500. However, I am new to FHA appraising and am curious what you do if the repairs are over $5000? Do I just put it in the lenders court?

I do a lot of work in rural areas and don't like driving an hour to find out a property isn't going to work. Like when the owner swears it isn't a manufacture and you show up and it has wheels still on it. How do you "screen" properties for FHA qualifications over the phone with homeowners to make sure you aren't wasting your precious time and gas?

Also, this a reverse mortgage instead of a purchase so would it be elgible for a 203(k)?

Thank you.

???

I thought your original post said the home is in "bad shape".

Yet, it won't come to $5,000 in repairs? How can that be? Am I missing something?

Disclose, take pictures and give estimates of cost to cure. Leaking roof indicates possible hidden issues also. How long has it been leaking? Dry rot issues???

It's not your problem, let the lender deal with it. You are just reporting what is there (or not there).

Don't sugarcoat what you see. Just report and document what you see, let the lender decide what to do with the news.

As for pre-screening properties to make sure they work. That sounds like pre-determined values or results.