Another Impossible Request - From an AMC of course

[Riick]

Here is the situation:

FHA refinance appraisal made in early April.
The client's order required the appraisal to be made "As-Is".

I personally checked with HOC …. HOC had no problem with that requirement. I know that sounds fishy, but I heard it myself.

Property had some deferred maintenance problems which affected value, roof problem, and a possible health/safety issue w/main electric supply line.
I listed the items of deferred maintenance in an addendum with "cost to cure",
and adjusted for deferred maintenance in the grid as a seperate line item (lump sum).
I required certifications for both the Roof and Electrical issues.

The cosmetic issues were cleaned-up and I re-inspected.
Receipt for a new roof w/warranty was supplied. The electrician's Certification just arrived via email,
….together with the following, and I quote:

client has provided electrical cert as requested.
Please review and make all nessescory changes to the 1004 and remove all negative adjustments for deffered maintaince.
This should have an impact on the gross weighted average.

Modifying the original report would be misleading.
What I saw during that inspection was what I reported; I can't and won't change that.

Are there any other options, aside from a new inspection and a new report?

NOTE: I believe that the original report has never been submitted to HUD.

 

[Rufus]

FHA appraisals cannot be "as-is" if there are problems. Your original report should have provided the value as-repaired. State the requirements and when those are completed, the value will be what you should have reported.

 

[Mr Rex]

Riick, I agree with Rufus, FHA protocol trumps "client" desires. Share these requirements with the HOC in your area, I think there may be a prayer meeting with FHA in the "clients" future if they want to stay in the congregation.

 

[EVAUSA]

I'm not FHA, so I'd agree with Rex & Rufas, but as far as any request when changes have been made since your initial inspection, NOPE! New report, OR 442.

 

[TJSum]

You have to explain better how you did an "as is" report, but yet called for repairs and inspections. ???

I would find it hard to believe any HUD person confirmed that an "as is" only SOW would be considered fine on any FHA appraisal based on their guidelines.

Anyway, back to the your question, when doing an appraisal subject to inspections and or repairs, addressing these issues are already incorporated into the value (subject to). Also note, those certifications from the roofer and electrician are for the UW, not the appraiser, it is their job to sign off on them.

Hopefully you got that advice from the HUD person in writing, because it sounds like this loan has "issues" (did the client call the HOC for this info, or did you)?

I added this edit after reading Eva's answer, FHA does not use the 442, but then again the OP stated it was done "as is", so who knows...

 

[Rufus]

I noticed my edit came after Mr. Rex's reply. I added "if there is problems" to my original post, apprantly whilst he was posting his reply.

 

[jtinmichigan]

just a question,.

You say a receipt w/ warranty was supplied for a new roof? Did the roof actually get replaced? Or, did you just get the receipt saying it would be done sometime........in the future? A receipt is not a new roof. The second you accept it, the homeowner can cancel the roof job, get most or all of his money back and the house still has a problem, and all you've got is a receipt. And a problem.

Makes a difference.

As far as modifying the original report, I don't believe thats a viable option. An update may be more appropriate, or a letter stating that the conditions set forth in the original appraisal have been met.

Otherwise, new assignment, new date.

And remember, this is FHA. That case# was issued sometime back in April for an "As-Is" appraisal as of that date. Whether or not it was submitted yet to HUD doesn't matter. It was prepared and submitted to the client as instructed as of the effective date. As of that date, these items were still problems. Therefore, you cannot use the original effective date of the original appraisal and say that everything was hunky-dory. When you, and now all of us, know that was not the case.

And from the sound of it, the roof may still be a problem. I would not under any circumstances go out on a limb on a "receipt for a new roof".

just my humble opinion.

 

[Pamela Crowley (Florida)]

How about telling the AMC that you cannot discuss the appraisal with them as they are not the FHA approved Direct Endorsement Underwriter.

 

[jtinmichigan]

wow

When I started typing this last one up nobody had replied, by the time I finished writing we had a pile of responses, You guys are quick!!!!!!!

 

[Rufus]

... A receipt is not a new roof. The second you accept it, the homeowner can cancel the roof job, get most or all of his money back and the house still has a problem, and all you've got is a receipt. And a problem. ...

Hopefully he stated something like: "Repair all roofing deficiencies and provide a roofing certification from a licensed contractor stating that all roof decking and shingles are in good repair and have a remaining life of at least two years." or some such.

And the OP was saying that he had received (was in receipt of) a document saying the roof was hunky-dory or made so.