203(k) Final Inspection

[Noreen]

That caught my eye too, Mike. But, I was thinking in terms of double jeopardy:icon_mrgreen: Looking over the stuff already cleared implies some sort of property maintenance guarantee. They have them in reverse mortgages, but in 203K, I think the owner has the freedom to allow a bit of paint peeling on the parts of the property not covered by the proposed renovation.

Wait until HUD starts cracking down on homeowners with reverse mortgages. I can see the headline: "75 year old falls off ladder, trying to scrape & paint trim before HUD inspector reports his mortgage in default due to lack of maintenance." I am pretty sure there is an active reverse mortgage exterior inspection program, probably mostly for occupancy reporting at this time.

We fall under Philadelphia, but have a regional office in Manchester, NH. And in this neck of the woods, no chipping peeling paint in structure older than 1978 ( or 1976, I always have to look that up) is allowed. they will pull us off the roster and we lose our letter. And I know a guy who took it to court and lost, he will never be on the roster again. It is not tolerated here.

 

[JSmith43]

I have no reason to doubt you regarding the initial inspection. Denver HOC, same thing. The appraisal has an effective date and a SOW. I don't think either one of them can make an appraiser guarantee that paint won't peel in the 6 months or so between an inspection making the home clear to close, subject to an escrow agreement for repairs to be completed.

The appraiser is there to see that the improvements are completed per the escrow agreement, not to do a recertification of prior work cleared. I'd like to see it in writing that it is otherwise. Otherwise, be sure and flush a couple of toilets while there & check the water pressure, test a sampling of outlets.

 

[samandgreg]

I appraised a property FHA, lots of repairs needed (lender owned). Deal is now going FHA with 203K, "Subject to" all repairs. I have the cost and fees for repairs. The lender wants two additional sales and one listing/pending. The appraisal was finished in April 2011. The sales price has also been changed. They want a recertification of value. I think this is a new appraisal, do to all the changes... Can I do it has a recertification??

 

[AnonApprsr]

No. The scope of work has apparently changed for the lender's needed appraisal of this property. That doesn't mean your other appraisal is wrong or needs to be "corrected." That means they need a new appraisal. Do they want you to do it? Do you want to do it for free? You'll have to communicate with them.

 

[Mr Rex]

When doing the original 203K report, you should note any items not included in the proposed renovations that would be required to meet MPR.

Appraisals
http://portal.HUD.gov/hudportal/images/hudimg?id=hgv_icn_pointer_red_40286.gif [SIZE=+0][SIZE=+0]If the appraiser identifies repair conditions that were not noted in the work write-up, the appraiser should notify the lender.[/SIZE][/SIZE]