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Appraiser Marked Private Septic And Well As Public

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Tiffany Gibbons said:
Is that what your attorney said? It has been 5 months. How's that equity working for you now? How's your "Zestimate"? Are you a home inspector?
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No that's what your license requires you to know to prevent the loan from funding and or require the seller to bring up to MPR. Again this is not an issue of the system failing, it is an issue of the appraisers negligence causing a loan to fund that would have been disqualified. The sanitarian engineer on this project used an example of an FHA loan he was hired for requiring the entire WORKING system replaced due to it being 2 ft short of minimum distance requirements. Mine is 10. Whether is was failing or not it would have been required to be entirely replaced prior to funding.
 
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FYI, appraisers have nothing to do with loan funding. From FHA guidance: If unable to determine the distance between the well and the drainfield, or if the well is within 10 feet of any property line, a condition requirement should be made. The underwriter can clear the condition by obtaining satisfactory evidence from a qualified party that the distance requirements (between the two systems, and from the well to the property line) have been met. The lender knew there was a septic system and chose to do nothing about it.
 
Sadie said:
FYI, appraisers have nothing to do with loan funding. From FHA guidance: If unable to determine the distance between the well and the drainfield, or if the well is within 10 feet of any property line, a condition requirement should be made. The underwriter can clear the condition by obtaining satisfactory evidence from a qualified party that the distance requirements (between the two systems, and from the well to the property line) have been met. The lender knew there was a septic system and chose to do nothing about it.
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Correct the lender hires the appraiser and the lender holds the responsibility of verifying the accuracy of the appraisal used to fund the loan. After the appraiser settles with me I would advise her to ask the lender to reimburse her half. Also the scenario you used about being unable to determine distances does not apply when the appraiser does not even attempt to determine the distance due to marking it public.
 
Bayouplace713 said:
Correct the lender hires the appraiser and the lender holds the responsibility of verifying the accuracy of the appraisal used to fund the loan. After the appraiser settles with me I would advise her to ask the lender to reimburse her half. Also the scenario you used about being unable to determine distances does not apply when the appraiser does not even attempt to determine the distance due to marking it public.
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Do you have a copy of the appraisal? Yes? Look for where the appraiser names the client and authorized user(s). Are you named? No? Then according to settled lawsuits, you may not rely upon this appraisal as a basis for a property purchase decision or contingency related to the property. So, if the appraiser settles, consider yourself extremely lucky.
 
Bayouplace713 said:
No that's what your license requires you to know to prevent the loan from funding and or require the seller to bring up to MPR. Again this is not an issue of the system failing, it is an issue of the appraisers negligence causing a loan to fund that would have been disqualified. The sanitarian engineer on this project used an example of an FHA loan he was hired for requiring the entire WORKING system replaced due to it being 2 ft short of minimum distance requirements. Mine is 10. Whether is was failing or not it would have been required to be entirely replaced prior to funding.
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My license requires no such thing, FYI.
 
What did the MLS say? The Realtor? Did they say it was public? The appraiser certainly has some proactive responsibility to check those things.
 
Terrel L. Shields said:
What did the MLS say? The Realtor? Did they say it was public? The appraiser certainly has some proactive responsibility to check those things.
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The MLS said private, the seller's disclosure said private, she received a receipt for the tank being pumped by the seller when all repair receipts were requested to justify the selling price and she walked past the uncovered lid located 10 feet from the front door to get into the house. Which makes it look intentionally marked public in order to bypass the measurements. I've also heard she may have thought the water well in the garage was a water heater.
 
Bayouplace713 said:
You aren't required to know MPR on FHA appraisals? You must have gotten your license from the same place the appraiser on my property did.
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I doubt it since we are in different states. Was it a Desktop Appraisal? I do not do FHA appraisals, so can't help you there.
 
Tiffany Gibbons said:
I doubt it since we are in different states. Was it a Desktop Appraisal? I do not do FHA appraisals, so can't help you there.
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Well if you did, I can assure you your license would require you to not only know but perform them. It was not a desktop.
 
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