Appraiser Marked Private Septic And Well As Public

[Huds_Harm]

The OP has spent some time on an Appraisal Forum and has read an outdated FHA manual and is now an appraiser. Their license is in the mail. Unfortunately they did not perform their own due diligence or maybe it's just a case of caveat emptor

Time would be better spent with a lawyer.

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Your colleague posted the current one for us

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.

 

[EddieB]

I do fear that we will be seeing similar circumstances in the near future. The red hot RE market has created a feeding frenzy with all parties probably rushing their due diligence., including appraisers.

I am working with a case now from a different angle with a buyer who bought a flipped property. Two months after purchasing, the new metal roof began leaking and major termite damage was found. Don't know what they will be doing yet but it's not a position one wants to be in.....

 

[EddieB]

OP, would you please stop posting the same damn thing over and over again. And maybe read and heed some advise you've been graciously afforded.

 

[Huds_Harm]

I do fear that we will be seeing similar circumstances in the near future. The red hot RE market has created a feeding frenzy with all parties probably rushing their due diligence., including appraisers.

I am working with a case now from a different angle with a buyer who bought a flipped property. Two months after purchasing, the new metal roof began leaking and major termite damage was found. Don't know what they will be doing yet but it's not a position one wants to be in.....

Thank you. All I’m saying is this would have been prevented with due diligence on everyone’s part.

 

[Sadie]

Humor me and tell me how the mortgagee is to determine that if the appraiser did not disclose the property was private sewer and water.

The appraisal was the only thing, according to you that did not refer to the septic system. The appraisal is not the lender's only source of information about the property. Lenders do know what kind of utilities a property has. As a former UW I do know what I am talking about.

 

[Huds_Harm]

OP, would you please stop posting the same damn thing over and over again. And maybe read and heed some advise you've been graciously afforded.

Respectfully don’t insult me and then pretend you offered advice.

 

[Huds_Harm]

The appraisal was the only thing, according to you that did not refer to the septic system. The appraisal is not the lender's only source of information about the property. Lenders do know what kind of utilities a property has. As a former UW I do know what I am talking about.

That’s what I assumed as well but when the AMC lies and says the appraisal was accurate and verified minimum distance requirements who is to blame?

 

[Tiffany Gibbons]

And I’m glad you don’t do FHA appraisals

Not as glad as I am. BTW, due to COVID 19, FHA was permitting Exterior Only and Desktop only, Mortgagee Letter 2020-05. These flexibilities were temporary and were not incorporated into the the HUD 4000.1 Realtors and Lenders really wanted appraisers completely out of the picture, and COVID 19 flexibility was the first step. Appraiser software companies couldn't wait to have home sellers doing their own inspections and photos. Cut to interest rates rising, low inventory, hot markets, now realtors are finding things wrong with properties they are trying to flip or get a cash out on to buy more properties. Fixer Upper is a TV show and you are not Joanna Gaines. Take a look at that appraisal and see if there is a COVID 19 Desktop or Exterior Only. Appraisals usually have a limited shelf life, end of December could be six months. Email answers@HUD.gov for feedback about the FHA Appraisal Protocols. P.S. The giveaway that you are a realtor is that you are not mad at the agent, the seller. the home inspector or any other related party.

 

[Sadie]

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

This statement that I don't know how you received, indicates to me that you did not receive a copy of a final corrected appraisal. It is not in the AMC's best interest to state something that does not exist. I said before that you probably did not receive a final corrected copy of the appraisal.

 

[Huds_Harm]

Not as glad as I am. BTW, due to COVID 19, FHA was permitting Exterior Only and Desktop only, Mortgagee Letter 2020-05. These flexibilities were temporary and were not incorporated into the the HUD 4000.1 Realtors and Lenders really wanted appraisers completely out of the picture, and COVID 19 flexibility was the first step. Appraiser software companies couldn't wait to have home sellers doing their own inspections and photos. Cut to interest rates rising, low inventory, hot markets, now realtors are finding things wrong with properties they are trying to flip or get a cash out on to buy more properties. Fixer Upper is a TV show and you are not Joanna Gaines. Take a look at that appraisal and see if there is a COVID 19 Desktop or Exterior Only. Appraisals usually have a limited shelf life, end of December could be six months. Email answers@HUD.gov for feedback about the FHA Appraisal Protocols. P.S. The giveaway that you are a realtor is that you are not mad at the agent, the seller. the home inspector or any other related party.

1. I am not a realtor
2. It was an in person appraisal and the septic is located 6 feet from the front door in the front flower bed and the cap was exposed at the time of appraisal. She also took a picture of the water well and marked it public.
3. I am suing every party involved in the transaction