Conversion to conventional from FHA even after FHA repairs were performed.

[Terrel L. Shields]

I can just make the extraordinary assumption that the condition is similar to the inspection date. No?

Not necessarily but if over 90 days (and sounds like this is), I'd reinspect, new date of report, new date of value.

 

[Trihard]

Not necessarily but if over 90 days (and sounds like this is), I'd reinspect, new date of report, new date of value.

The other option is to convert the appraisal to conventional, have the same effective date but also make it subject to, even though I know that the repairs are done. At the end of the day the lender is getting what they ordered. I really hate that the appraiser has to advise the client on how to order a proper appraisal.

 

[Terrel L. Shields]

The other option is to convert the appraisal to conventional, have the same effective date but also make it subject to, even though I know that the repairs are done.

Ask the client if they want it "as is" or "subject to". Chances are they want it "as is" I would bet. In which case you need to apply a current value and update the report to a current report date and value date. Don't forget to report the "prior service"(s) report, and final inspections.

 

[Trihard]

Ask the client if they want it "as is" or "subject to". Chances are they want it "as is" I would bet. In which case you need to apply a current value and update the report to a current report date and value date. Don't forget to report the "prior service"(s) report, and final inspections.

As-is would result in a full fee, a new inspection, new comps, new value and a new effective date, I'm pretty sure the lender does not understand this since they ordered a conversion.

 

[Terrel L. Shields]

As-is would result in a full fee, a new inspection, new comps, new value and a new effective date

why? You have the info, how long would it take to pull 3 comps (I mean I am assuming you think the comps used were not applicable?) and use the rest of the report? Geez, I can do those is 2 hours or less. You've toyed with this thread an hour already. But again, call the client and see what they really want. They are being a PITA but sometimes we need to just gut it out and do it right and not deal with the fallout that could occur.

 

[sputnam]

The lender has ordered a conversion from FHA to conventional. I originally inspected this property in late October and completed two 1004D certification of completion reports within the past three weeks to verify repair completion for a missing kitchen sink, missing drywall, and scraping/painting. The drywall and sink were repaired, but obviously after the original inspection in October. Should the inspection date now reflect the date of the most recent 1004D since the repairs were done, or should it remain as the original inspection date in October? The lender has ordered this as a conversion and does not want a brand new full inspection completed. I am considering this a new assignment, but I am uncertain whether to use the original effective date date from October with a new 1004D or the latest 1004D date as the inspection date. Any guidance would be appreciated. Thanks!

It is a new assignment since the Scope of Work has changed however, that does not mean that you have to reinspect or have a new effective date. Do the work and charge the Client based on what you had to do. All of my fees are based on my estimate of how long an assignment will take times my hourly rate.

 

[Terrel L. Shields]

All of my fees are based on my estimate of how long an assignment will take times my hourly rate.

Exactly.