Appraiser Marked Private Septic And Well As Public

[Huds_Harm]

Also not only did the appraiser lie about the utilities being public, I just learned the AMC LIED on the 21 point QC FHA form to the lender stating not only did the report indicate that the property was private water and sewer, but that it included the statement ? If also on private water, is there a comment noting if the subject meets the minimum FHA distance requirements from the well to the storage tank, drain field, and property? BUT TWO LIES MUST BE A COIENCIDENCE RIGHT?

6 Does the report indicate that the water is private? If yes, does the appraiser provide a comment on the availability of public water and if the subject is required to connect? Also, does the appraiser comment if private utilities are common for the area and if there is any impact on the subject's marketability? Yes

8 Does the report indicate that the sewer is private? If yes, does the appraiser provide a comment on the availability of public sewer and if the subject is required to connect? If also on private water, is there a comment noting if the subject meets the minimum FHA distance requirements from the well to the storage tank, drain field, and property? Also, does the appraiser comment if private utilities are common for the area and if there is any impact on the subject's marketability? Yes

 

[Tiffany Gibbons]

This is a very appropriate quote from andrew21 on another FHA post:

The FHA guidelines are:
- Require well water testing when the distance between the well and septic system is less than 100 feet.
- Existing construction wells must be 50 ft or greater from the septic tank.
- Existing construction wells must be 100 ft or greater from the drain field.
- Existing construction septic tank drain field reduced to 75 feet if allowed by local authority.
- If the Property has a septic system, the Appraiser must visually observe it for any signs of failure or surface evidence of malfunction. If there are readily observable deficiencies, the Appraiser must require repair or further inspection.
- The Appraiser is not required to sketch or note distances between the well, property lines, septic tanks, drain fields, or building Structures but may provide estimated distances where they are comfortable doing so. When available, the Appraiser should obtain from the homeowner or Mortgagee a copy of a survey or other documents attesting to the separation distances between the well and septic system or other sources of pollution.

I am on the FHA list of approved appraisers but I don't do any residential appraisals except VA. This is why I don't do them anymore.

 

[Stantheman]

I am on the FHA list of approved appraisers but I don't do any residential appraisals except VA. This is why I don't do them anymore.

Too much liability nowadays with FHA, just not worth it.

I am curious if this house was an REO before the flippers purchased it.

 

[Huds_Harm]

The appraiser on the property I purchased with an FHA loan marked my water and sewer as public therefore the required FHA tests and minimum distance requirements were not performed. The system has not only failed it will cost upwards of 60k to bring up to health and safety standards due to the size of the lot and having to move the well. The property does not qualify for a FHA loan due to the distance from the septic to the well as is being only 40ft. Any advice on who is liable?

Also not only did the appraiser lie about the utilities being public, I just learned the AMC LIED on the 21 point QC FHA form to the lender stating not only did the report indicate that the property was private water and sewer, but that it included the statement ? If also on private water, is there a comment noting if the subject meets the minimum FHA distance requirements from the well to the storage tank, drain field, and property? BUT TWO LIES MUST BE A COIENCIDENCE RIGHT?

6 Does the report indicate that the water is private? If yes, does the appraiser provide a comment on the availability of public water and if the subject is required to connect? Also, does the appraiser comment if private utilities are common for the area and if there is any impact on the subject's marketability? Yes

8 Does the report indicate that the sewer is private? If yes, does the appraiser provide a comment on the availability of public sewer and if the subject is required to connect? If also on private water, is there a comment noting if the subject meets the minimum FHA distance requirements from the well to the storage tank, drain field, and property? Also, does the appraiser comment if private utilities are common for the area and if there is any impact on the subject's marketability? Yes

 

[Jayjay25]

Please tell me how you or anyone determined it was working if it was not inspected as required????????????????????????????

The only requirement for testing is flushing a toilet and looking for any above ground signs of problems. Both non-issues at the time of closing

 

[Huds_Harm]

The only requirement for testing is flushing a toilet and looking for any above ground signs of problems. Both non-issues at the time of closing

Ha! Didn’t you just post this?

This is a very appropriate quote from andrew21 on another FHA post:

The FHA guidelines are:
- Require well water testing when the distance between the well and septic system is less than 100 feet.
- Existing construction wells must be 50 ft or greater from the septic tank.
- Existing construction wells must be 100 ft or greater from the drain field.
- Existing construction septic tank drain field reduced to 75 feet if allowed by local authority.
- If the Property has a septic system, the Appraiser must visually observe it for any signs of failure or surface evidence of malfunction. If there are readily observable deficiencies, the Appraiser must require repair or further inspection.
- The Appraiser is not required to sketch or note distances between the well, property lines, septic tanks, drain fields, or building Structures but may provide estimated distances where they are comfortable doing so. When available, the Appraiser should obtain from the homeowner or Mortgagee a copy of a survey or other documents attesting to the separation distances between the well and septic system or other sources of pollution.

 

[James Micozzi]

Ha! Didn’t you just post this?

This is a very appropriate quote from andrew21 on another FHA post:

The FHA guidelines are:
- Require well water testing when the distance between the well and septic system is less than 100 feet.
- Existing construction wells must be 50 ft or greater from the septic tank.
- Existing construction wells must be 100 ft or greater from the drain field.
- Existing construction septic tank drain field reduced to 75 feet if allowed by local authority.
- If the Property has a septic system, the Appraiser must visually observe it for any signs of failure or surface evidence of malfunction. If there are readily observable deficiencies, the Appraiser must require repair or further inspection.
- The Appraiser is not required to sketch or note distances between the well, property lines, septic tanks, drain fields, or building Structures but may provide estimated distances where they are comfortable doing so. When available, the Appraiser should obtain from the homeowner or Mortgagee a copy of a survey or other documents attesting to the separation distances between the well and septic system or other sources of pollution.

Yes. There were probably mistakes by the appraiser, home inspector, etc. YOU also knew that there was a septic tank but you CHOSE not to point this out. YOU were aware of these mistakes prior to the loan closing and did not notify anyone. Why? Probably because you were getting a good interest rate, FHA requires less out of pocket cash as a down payment, etc. Now FIVE month later, your septic system has a problem. Oh well, you made the decision to accept the loan and appraisal as it was written, errors and all. Now quit bitching about it and stop trying have someone else pay for your bad decision.

 

[Huds_Harm]

Yes. There were probably mistakes by the appraiser, home inspector, etc. YOU also knew that there was a septic tank but you CHOSE not to point this out. YOU were aware of these mistakes prior to the loan closing and did not notify anyone. Why? Probably because you were getting a good interest rate, FHA requires less out of pocket cash as a down payment, etc. Now FIVE month later, your septic system has a problem. Oh well, you made the decision to accept the loan and appraisal as it was written, errors and all. Now quit bitching about it and stop trying have someone else pay for your bad decision.

You missed one point. I am not required to verfify minimum FHA requirements the appraiser and lender are. The system was obviously fraudulently over looked due to the TWO lies from both the appraiser and the AMC because of what? Surely not because it was perfectly fine. Also I was not aware of the mistakes until October 23rd. Not prior to closing.

 

[James Micozzi]

You missed one point. I am not required to verfify minimum FHA requirements the appraiser and lender are. The system was obviously fraudulently over looked due to the TWO lies from both the appraiser and the AMC because of what? Surely not because it was perfectly fine. Also I was not aware of the mistakes until October 23rd. Not prior to closing.

I don't care about whether your are required to verify FHA requirements. So you did not get a copy of the appraisal report prior to closing? Why? are you that trusting? If you are, then it is still on you for not caring enough to make sure to read the appraisal. You admit you knew there was a septic tank but you were naïve enough to rely on your realtor, mortgage broker/lender, etc. to make sure all the i's were dotted and all the t's were crossed. That is your mistake. Now the other question is if you had received copy of the appraisal report prior to closing, would you have even mentioned the septic? My guess is no.

 

[Huds_Harm]

I don't care about whether your are required to verify FHA requirements. So you did not get a copy of the appraisal report prior to closing? Why? are you that trusting? If you are, then it is still on you for not caring enough to make sure to read the appraisal. You admit you knew there was a septic tank but you were naïve enough to rely on your realtor, mortgage broker/lender, etc. to make sure all the i's were dotted and all the t's were crossed. That is your mistake. Now the other question is if you had received copy of the appraisal report prior to closing, would you have even mentioned the septic? My guess is no.

Let me guess you don’t do FHA appraisals either because there are too many REQUIREMENTS.