Appraiser Marked Private Septic And Well As Public

[Huds_Harm]

You could have requested the Lender to have the health department or professional sanitary engineer make an inspection. FHA does not automatically disqualify a home just for being on septic. Even if the appraiser had checked the right box, it would have to be an obvious malfunction for the appraiser to call for an inspection. This is not on the appraiser. If you did not question the seller, the agents involved (who happily cashed their commission checks) the lender who made $ off the loan and closing costs, home inspector and now surveyor about this, you are ultimately responsible for a bad decision on buying a house.

Wrong. If she had marked it private it would have been required to be measured and it would not have qualified based on the distance being 40 not 50 ft.

More specifically this is what would have been required by the lender per the AMC's quality control checklist

6Does 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?

8Does 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?

 

[Tiffany Gibbons]

Wrong. If she had marked it private it would have been required to be measured and it would not have qualified based on the distance being 40 not 50 ft.

More specifically this is what would have been required by the lender per the AMC's quality control checklist

6Does 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?

8Does 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?

But you knew and you could have informed the lender or excuse me, the AMC's quality control checklist. Why do you think the appraiser is negligent but none of the other parties are?

 

[Huds_Harm]

But you knew and you could have informed the lender or excuse me, the AMC's quality control checklist. Why do you think the appraiser is negligent but none of the other parties are?

I did not know it was marked improperly or the lenders/FHA requirements until October of 2021. 5 months after closing. Had the system never failed I would not have discovered the error. I do think the lender holds liability to verify the accuracy of the appraisal and they are copied on the demand letter.

And if I had known it was incorrect at the time of closing and the distance requirements, why wouldn't I have informed the lender since the seller would have been required to replace it at their expense?

 

[JTip]

why wouldn't I have informed the lender since the seller would have been required to replace it at their expense?

You would have had to negotiate that in your contract.

 

[Tiffany Gibbons]

The MLS said private, the seller's disclosure said private, she received a receipt for the tank being pumped by the seller when all repair receipts were requested to justify the selling price and she walked past the uncovered lid located 10 feet from the front door to get into the house. Which makes it look intentionally marked public in order to bypass the measurements. I've also heard she may have thought the water well in the garage was a water heater.

The appraiser received a receipt for the tank being pumped to justify the selling price? The well is in the garage and the appraiser may have mistaken it for a water heater? How do you know that? Are you sure you are in possession of the final appraisal report? The lender may have a corrected copy with more comments that you were never supplied with, because after all the lender is the client, not you.

 

[Sadie]

That's correct.

Instead of trolling the forum, you should have repaired it when it was $60k.

 

[Huds_Harm]

You would have had to negotiate that in your contract.

Correct. In order for the loan to close it would have been required to be replaced OR guess what? I wouldn't have purchased this house.

 

[Huds_Harm]

The appraiser received a receipt for the tank being pumped to justify the selling price? The well is in the garage and the appraiser may have mistaken it for a water heater? How do you know that? Are you sure you are in possession of the final appraisal report? The lender may have a corrected copy with more comments that you were never supplied with, because after all the lender is the client, not you.

There is no other report and that comment came directly from the licensing board.

 

[Huds_Harm]

Instead of trolling the forum, you should have repaired it when it was $60k.

Sadie replying to questions is not trolling. Justifying a fraud appraiser is. Ya'll really do stick together lol.

 

[Amy Perkins]

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?

The appraiser does not work for you. The appraiser works for the bank. The bank is not liable for repairs on your home. The home inspector and your real estate agent work with you to protect you from houses that have issues like this one. Your agent can bring the other agent together and if they are Realtor members they both agree automatically to go to mediation. During mediation, you will describe that the property was not disclosed honestly and the septic needed repair. Then the person who actually cheated you can pay for it and if the agent knew, they are liable. Regarding an error on the appraisal, the disclosure was not on the contract, because obviously it is evidence that they did not disclose this problem. GO TO YOUR AGENT AND SELLER, we have nothing to do with it other than if you default on your loan that was over valued appraised. This is called damages, but if you pay your mortgage, there is no loss to the bank. If somehow you made the grave mistake of not having representation, you may have to sue them to recover your loss. Look on the contract, does it say Realtor? If it does you can get your money without going to court. Did the contract say "as is?"