Appraiser Marked Private Septic And Well As Public

[Stantheman]

Was there a mention of a home inspection?

I looked again through the thread and didn't see it.

 

[TerryRohrer]

So if I understand your predicament correctly, you can't correct the issue without getting permits to repair the sewer, and moving the well to the 50-foot distance is a condition of the permit (correct)?

 

[TerryRohrer]

I looked again through the thread and didn't see it.

Was there a mention of a home inspection?

There is another thread by the same title in the Ask and Appraiser section. Looks like this one was moved by an admin, or a new thread was started.

 

[Huds_Harm]

Seems it’s on a second thread same title

 

[Huds_Harm]

Was there a mention of a home inspection?

Updating OP

 

[Sadie]

I agree the lender holds some liability as well to insure the product their funding meets requirements. The city county nor state have any records.

the lender has quite a bit of power here. They can over-ride much of what is in the appraisal. That is in a different part of the handbook. The property meeting FHA standards is solely on the lender, not the appraiser. If the lender knew the property had a septic system, it is their responsibility to ensure the property meets standards and the appraisal matches what is actually on site. The lender needed to have a survey or a waiver of some kind to approve the property for FHA.

 

[Ariba]

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.

You apparently know more than you let on concerning the septic system but did not have it tested for a rural property. Now are looking for someone to blame. You might want to look in the mirror. Did you have the well tested?

 

[Huds_Harm]

You apparently know more than you let on concerning the septic system but did not have it tested for a rural property. Now are looking for someone to blame. You might want to look in the mirror. Did you have the well tested?

Again that is something I recently learned was REQUIRED to be tested had the appraiser notified it was on septic and well. However they did include a picture of the well and neither the lender or appraiser requested it.

 

[Jayjay25]

Bingo

What that means is that the appraisal deficiency could cause a future problem for the lender and is not there to prevent future problems for the purchaser. The purchaser needs to do their own due diligence including paying for a complete septic inspection which isn’t included in a typical home inspection. The distance between the well and septic most likely wouldn’t even have been seen as an issue if the septic didn't fail.

 

[Ariba]

Again, if you buy a rural property you have to do your due diligence and have to assume that the property is not hooked up to public utilities. Why are you now doing the homework when it should have been turned in before closing.