Appraiser Marked Private Septic And Well As Public

[Huds_Harm]

Again, if you buy a rural property you have to do your due diligence and have to assume that the property is not hooked up to public utilities. Why are you now doing the homework when it should have been turned in before closing.

Because as the buyer I was not required to know minimum FHA requirements.

 

[Huds_Harm]

I will update the outcome

 

[Huds_Harm]

What that means is that the appraisal deficiency could cause a future problem for the lender and is not there to prevent future problems for the purchaser. The purchaser needs to do their own due diligence including paying for a complete septic inspection which isn’t included in a typical home inspection. The distance between the well and septic most likely wouldn’t even have been seen as an issue if the septic didn't fail.

It will most definitely cause a problem

 

[Ariba]

Because as the buyer I was not required to know minimum FHA requirements.

So are you saying, the seller, seller agent, and buyer agent did not disclose to you that the rural property you are about to purchase was on a septic system and well water? I just don't believe you are telling the complete story.

 

[TerryRohrer]

It will most definitely cause a problem

Have you notified the lender of the situation? They do have a problem in that if you walk away rather than pay $60k for something you won't get, they own the defective property. They would like FHA to cover their losses, but if they did not do their jobs, FHA should not payout. So, you have a very tender spot on which to apply pressure. At a minimum, they can take the appraiser to task, and the appraiser has to have E&O to work (usually). Taking that approach could get the problem corrected before you walk away, although it won't likely be quick.

 

[Huds_Harm]

So are you saying, the seller, seller agent, and buyer agent did not disclose to you that the rural property you are about to purchase was on a septic system and well water? I just don't believe you are telling the complete story.

No. I am saying that the lender and the appraiser did not do their due diligence in approving a home for an FHA loan that does not qualify. I’m having a hard time believing anyone would voluntarily pay 60k to bring a house up to health and safety standards that should have never been approved in the first place.

 

[Huds_Harm]

Have you notified the lender of the situation? They do have a problem in that if you walk away rather than pay $60k for something you won't get, they own the defective property. They would like FHA to cover their losses, but if they did not do their jobs, FHA should not payout. So, you have a very tender spot on which to apply pressure. At a minimum, they can take the appraiser to task, and the appraiser has to have E&O to work (usually). Taking that approach could get the problem corrected before you walk away, although it won't likely be quick.

The lender has requested the appraisers e and o insurance. I was thinking the same in that if I walk away they are still liable to repair the property before selling again or take a loss so why not make it right for the buyer they’re already making thousands in interest off of?

 

[Cob]

Because as the buyer I was not required to know minimum FHA requirements.

You do NOT have to know minimum FHA requirements as a buyer of a rural property that you knew was on septic and well to have them tested YOURSELF, however, I could understand IF you did not not know the property was on septic and well and this happened. Did you get a copy of the appraisal before closing? If so, did you not notice that the appraisal was marked public water and sewer, because if you were furnished with a copy of the appraisal report by the lender before closing, as they are supposed to do, then good luck in court if they put you on the witness stand an attorney asks you if you were furnished with a copy of the appraisal report by the lender before closing.

 

[Cob]

Did you get a copy of the appraisal before closing? If so, did you not notice that the appraisal was marked public water and sewer, because if you were furnished with a copy of the appraisal report by the lender before closing, as they are supposed to do, then good luck in court if they put you on the witness stand an attorney asks you if you were furnished with a copy of the appraisal report by the lender before closing.

 

[Huds_Harm]

Did you get a copy of the appraisal before closing? If so, did you not notice that the appraisal was marked public water and sewer, because if you were furnished with a copy of the appraisal report by the lender before closing, as they are supposed to do, then good luck in court if they put you on the witness stand an attorney asks you if you were furnished with a copy of the appraisal report by the lender before closing.

But I’m not the intended user according to appraisers smh