Appraiser Marked Private Septic And Well As Public

[Huds_Harm]

What did the report for the home inspector conclude? were all of the systems working properly as of the effective date? Did the home inspector note any issues?

The septic was not inspected due to it not being able to be located at the time of inspection. The county city state has no record of it but it was found and easily noticeable to the right of the front entry at the time of appraisal as was the water well that was pictured yet no tests done. The lender/appraiser questioned the value as it was recently purchased for 100,000 less months prior and we’re provided all repair receipts including the tanks being serviced and still marked it as public and no required tests.

 

[NJAPRAZE]

The septic was not inspected due to it not being able to be located at the time of inspection. The county city state has no record of it but it was found and easily noticeable to the right of the front entry at the time of appraisal as was the water well that was pictured yet no tests done. The lender/appraiser questioned the value as it was recently purchased for 100,000 less months prior and we’re provided all repair receipts including the tanks being serviced and still marked it as public and no required tests.

It appears that you referencing the APPRAISER and their report; they are not home inspectors... did you have a separate home inspection completed by a licensed home inspector? Typically -- these insps/viewings are more comprehensive in terms of testing systems and inspecting the home for deficiencies, etc. (vs what an appraiser views and reports). Did you have a home inspection compeleted and what was that inspector's conclusions about the systems? Typically -- in coordination with a separately prepared appraisal -- the lender uses these TWO diff reports to assess the collateral (i.e. the home you bought); was a home inspection ordered/completed? If not... why wasn't this done?

 

[Huds_Harm]

It appears that you referencing the APPRAISER and their report; they are not home inspectors... did you have a separate home inspection completed by a licensed home inspector? Typically -- these insps/viewings are more comprehensive in terms of testing systems and inspecting the home for deficiencies, etc. (vs what an appraiser views and reports). Did you have a home inspection compeleted and what was that inspector's conclusions about the systems? Typically -- in coordination with a separately prepared appraisal -- the lender uses these TWO diff reports to assess the collateral (i.e. the home you bought); was a home inspection ordered/completed? If not... why wasn't this done?

I am referencing the septic was not located at the time of the home inspection. It was located prior to appraisal and exposed.

 

[Huds_Harm]

What are your damages? Your septic did not fail because you went FHA. So at most if they call it in you can get another loan and your damages will be the new closing costs. You do have to understand that FHA code on the septic has nothing to do with, if you have to replace the drainfield or tank etc. Even if a home inspecton said that your system was great, and breaks 5 months later, you can not do anything unless you can prove it that it was broken before the inspection. I feel sorry for your problems, but probably you had a copy of the appraisal before the closing and at that time you should of seen the appraiser's mistake.

The home did not qualify prior to purchase due to the minimum distance requirements from well to septic and well to leach lines therefore if marked correctly that would have been determined and the loan never funded.

 

[Huds_Harm]

To the OP: And if the report was returned and the appraiser checked the appropriate box, would this have made everything better?

The septic failed several months after the owners took possession. Sometimes things break/go bad. That's the nature of 'things'. The owner knew the subject was on a septic system and failed to get a septic inspection. Shared liability? It took several months for it to fail. That means that its unlikely that a septic inspection would have found a problem.

Curious? If the gas furnace broke after a few months and the appraiser had checked the 'electric heat' box, does that make the appraiser liable?

The whole "...doesn't qualify for FHA loan..." is just a red herring so the owner can try to find someone and force them to pay for their defective septic system. I suppose its worth a shot, who knows what E&O policy might settle rather than fight.

Also issues arose 2 months after closing and this forum suggests an appraiser to note if the property was vacant that it can’t be determined if it is working since it is not being used and recommend inspection by a licensed professional but hey she took a picture of the water well and didn’t do the required pump test either.

 

[Huds_Harm]

Also from this forum

FHA does not require a map showing the location of the well and leachfields (however, some lenders require them). Still, you are required to find out if they meet the minimum distances between the two and from the lot lines.

 

[Huds_Harm]

Also from this forum

In general HUD goes along with what local permitting authorities require, IE City-County, in my area require a abandoned well to be capped. As far as distance of 40 feet that won't do it --Personally I always hire a general contractor and a well guy who determine where the well and septic are located, they draw a map shewing distances etc. Sometimes on 100 year old homes, there are multiple sites that have been abandoned over the years and back in the day when a cesspool filled up , the owners just dug a new one. the same with wells, the ones you are measuring may not even be the ones being used. Anyway good luck-and make 100% sur eyou can really dig another well 100 feet away ? thats a good distance and water pressure may be an-issue .

What a difference the responses are to other appraisers regarding requirements than the buyer.

 

[2008 KC Royals]

What a difference the responses are to other appraisers regarding requirements than the buyer.

I can't believe appraisers have different opinions! I'm shocked! Shocked!

 

[Huds_Harm]

I can't believe appraisers have different opinions! I'm shocked! Shocked!

Appraisers have different opinions on the same issue based on who is asking lol

 

[Overimprovement]

The home did not qualify prior to purchase due to the minimum distance requirements from well to septic and well to leach lines therefore if marked correctly that would have been determined and the loan never funded.

Well, we've been patient and tried to be helpful. But this argument you KEEP making IMHO is a non-starter. If you want to hire an attorney go ahead, but repeating the same thought here 100 times will not get your loan unfunded. I would be shocked if any court, tribunal, or board would award a dime of damages to you from the appraiser, especially when EVERYONE else knew there was a well and septic and NO ONE ordered a septic test (which likely would have passed anyway). Your lender (both the loan officer and underwriters), the seller, the agents, county engineers, and you---are all more culpable in this than the appraiser.

You still have not answered WHY this will cost $60K to repair--or if you did I missed it. Brand new systems typically cost far less than that.