Appraiser Marked Private Septic And Well As Public

[Huds_Harm]

I know one who missed it, admitted it right away, and wanted to write the $10,000 check to get it behind him. E&O insisted on fighting it, and ended up paying something like $25,000.

Exactly I’m just looking for someone to make it right.

 

[TerryRohrer]

It was May of this year. I did know it was septic and well but I did not know the minimum FHA requirements of at least 50ft between the two. That is something the lender is supposed to verify before finding an FHA loan.

As advised above, you will need an attorney (a good one). I was approached earlier this year by an attorney representing a buyer who acquired a dwelling, then found out there was no foundation. Both realtors, lender, home inspector, and appraiser were in on the settlement.

 

[Tim Hicks (Texas)]

The appraiser will not know the actual distances unless provided a survey by the lender. This was probably an error on the appraiser's part. Was it marked as public utilities on the MLS listing? Maybe, the appraiser saw that and never thought about looking for a well and septic. I know there are some areas around here where I think they should have septic and well and it turns out they actually have public sewer and water. I have also seen where a property is located in an area with public sewer and water, but they are grandfathered with their own well and septic (but that is a FHA question also asking if public sewer and water are available).

 

[Huds_Harm]

The appraiser will not know the actual distances unless provided a survey by the lender. This was probably an error on the appraiser's part. Was it marked as public utilities on the MLS listing? Maybe, the appraiser saw that and never thought about looking for a well and septic. I know there are some areas around here where I think they should have septic and well and it turns out they actually have public sewer and water. I have also seen where a property is located in an area with public sewer and water, but they are grandfathered with their own well and septic (but that is a FHA question also asking if public sewer and water are available).
It was marked as private on MLS

 

[Tim Hicks (Texas)]

The test were required but we’re not performed due to it being marked as public. The home does not meet the minimum 50ft distance between the two.

Why did nobody notice until after closing? Shouldn't somebody have noticed before closing the appraisal was marked wrong? When the survey was provided to the lender, shouldn't somebody have noticed a well and septic on the survey before closing? It is still an error, but it is only two check boxes on a report full of check boxes.

 

[Huds_Harm]

Why did nobody notice until after closing? Shouldn't somebody have noticed before closing the appraisal was marked wrong? When the survey was provided to the lender, shouldn't somebody have noticed a well and septic on the survey before closing? It is still an error, but it is only two check boxes on a report full of check boxes.

That is the issue. The “error” will now be 60k to fix if at all possible due to the size of the lot and now I am in an FHA loan on a home that does not qualify.

 

[EddieB]

What does the seller disclosure forms say about water/sewer. What does your Realtor say about your next step?

 

[Huds_Harm]

What does the seller disclosure forms say about water/sewer. What does your Realtor say about your next step?

That too states private. The lender is blaming it on the AMC and vice versa meanwhile I’m in a home with raw sewage coming up the shower.

 

[Tim Hicks (Texas)]

That too states private. The lender is blaming it on the AMC and vice versa meanwhile I’m in a home with raw sewage coming up the shower.

Did you get a home inspection before your purchase?

 

[Huds_Harm]

I did but it did not include septic as it couldn’t be located at the time of inspection and is not on the survey however by the time of appraisal it was located and access available to inspect.