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Add An Addendum & Contractor Letter To Subject To Appraisal

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kphan1999

Freshman Member
Joined
Jul 16, 2010
Professional Status
General Public
State
California
I did a FHA appraisal a month ago subject to inspection by a licensed professional for the foundation cracks. I get a condition to add the contractor letter that all repairs have been completed. I didn't inspect the property since the effective date and the lender did not order a 1004d. This is new to me because every single subject to I complete, I always get a 1004d and inspect and include any documentation the lender gives me regarding the repair.
Is there a problem with just including the contractor letter and leaving the report subject-to and a comment that it's per lender request?
thank you in advance
 

Ms. Janet

Elite Member
Gold Supporting Member
Joined
Oct 27, 2004
Professional Status
Certified Residential Appraiser
State
Florida
Doesn't sound right.
 

Dublin ohio

Senior Member
Joined
Mar 20, 2008
Professional Status
Licensed Appraiser
State
Ohio
Seems to me that since you conditioned the report requiring inspection by licensed professional. You have conceded that you do not posses the expertise to address the situation. So why not just include the letter from the person you recommended. Unless repairs were made. Why would you want to re inspect the subject. You have already conceded that you did not have the expertise required. Lenders do have the ability to clear conditions without the necessity of the appraiser to "clear" the condition. To me. The situation you describe is the perfect storm. No added liability on the part of the appraiser.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I agree with Dublin above.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Is there a problem with just including the contractor letter and leaving the report subject-to and a comment that it's per lender request?
thank you in advance
charge for it and don't take no for an answer. Extra time is not free.
 

kphan1999

Freshman Member
Joined
Jul 16, 2010
Professional Status
General Public
State
California
thank you for all the replies. I called FHA and they highly suggest I do not add the letter to the report. They said have the lender order a 1004d, go take photos and turn in the report even when I subject to inspection. No section was cited, it's more of a liability issue for buy back if the loan has problems and the appraiser is ultimately responsible.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Why do anything. The inspection was done, let the lender work it out with the inspector.

THIS ^^^^^^^^^^^ is the correct answer. Why do they need you to change a report. The underwriter can submit the inspection and since you were not involved there is no reason for you to change your report.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
good move to have called FHA, now you have back up to go to lender with what needs to happen next.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
:clapping::clapping:
"kphan1999, said, "thank you for all the replies. I called FHA and they highly suggest I do not add the letter to the report. They said have the lender order a 1004d, go take photos and turn in the report even when I subject to inspection. No section was cited, it's more of a liability issue for buy back if the loan has problems and the appraiser is ultimately responsible."

Whew!
I was wondering how long it was going to be before someone claimed it to be an assignment condition, and to add the letter because lenders and other interested parties can give you information they believe is relevant to your report and you must change your report to accommodate them due to assignment conditions.

Thank you for providing FHA's response.

:clapping:
 
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