Do We Have To Check All Appliances?

[RSW]

I discussed the issue with the FHA resource center today, and I was told that if any of the fixed appliances are not operational on the property, it should be noted in the report, but the report should not be made "Subject to" resolution of appliances issues.

Reference attached pdf.

The reference in the 4000.1 is contrary to what the FHA Resource Center told you. I would go with what is in writing in the 4000.1.

 

[mark lyons]

Prior wording for checking functionality of FHA appliances used the word "conveyed" which was accepted to mean that it only applied to purchases.

It has now been changed to appliances that "remain". I can find no specific wording in HUD handbook that says appliances need only be checked for purchases.

This has led to some ambiguity and I had a stip on a FHA refi that argued that FHA refis need to check appliances.

So my question is do appliances need to checked for refis, if only for purchases is there an explicit statement somewhere in the handbook or anywhere?

 

[Fernando]

I agree, and FHA does make us check the really important things, do you know what they are? Start with appendix D then then read 4000.1. Were you the guy that didn't know what a BPO is?

That's me. I still don't understand why client wants to use BPO. It's not an appraisal. You could just use a real estate agent to do a market valuation. Same thing. Just name is different.

 

[Mr Rex]

Prior wording for checking functionality of FHA appliances used the word "conveyed" which was accepted to mean that it only applied to purchases.

It has now been changed to appliances that "remain". I can find no specific wording in HUD handbook that says appliances need only be checked for purchases.

This has led to some ambiguity and I had a stip on a FHA refi that argued that FHA refis need to check appliances.

So my question is do appliances need to checked for refis, if only for purchases is there an explicit statement somewhere in the handbook or anywhere?

There is no differentiation between Refis and Purchases in the level of inspection for any major lending program. For some reason, some appraisers (in error and at their own peril) feel more comfortable playing fast and loose with ignoring issues on Refinances. It is what it is regardless of refi, purchase etc

 

[Fernando]

I agree, and FHA does make us check the really important things, do you know what they are? Start with appendix D then then read 4000.1. Were you the guy that didn't know what a BPO is?

That's me. I still don't understand why client wants to use BPO. It's not an appraisal. You could just use a real estate agent to do a market valuation. Same thing. Just name is different.

There is no differentiation between Refis and Purchases in the level of inspection for any major lending program. For some reason, some appraisers (in error and at their own peril) feel more comfortable playing fast and loose with ignoring issues on Refinances. It is what it is regardless of refi, purchase etc

Common sense would say a refi owner will not sue appraiser for an appliance not working but a new owner on a purchase rely more on appraiser's inspection on appliances since new owner have limited funds which is why going to FHA.

 

[Mr Rex]

That's me. I still don't understand why client wants to use BPO. It's not an appraisal. You could just use a real estate agent to do a market valuation. Same thing. Just name is different.

Common sense would say a refi owner will not sue appraiser for an appliance not working but a new owner on a purchase rely more on appraiser's inspection on appliances since new owner have limited funds which is why going to FHA.

WTF does that have to do with doing the job you are paid to do? Does a FHA refi-er have more funds than a purchaser when both are getting maximum mortgage amount possible?

 

[Don Clark]

So if one of the four burners do not work, would you site it for repair?

As Mike says, another good reason to not do FHA appraisals. And, many appliances are personal property. And, are you a qualified appliance repair technician? Really stupid stuff.

 

[Fernando]

That's me. I still don't understand why client wants to use BPO. It's not an appraisal. You could just use a real estate agent to do a market valuation. Same thing. Just name is different.

Common sense would say a refi owner will not sue appraiser for an appliance not working but a new owner on a purchase rely more on appraiser's inspection on appliances since new owner have limited funds which is why going to FHA.

Yes, it shouldn't make any difference to FHA. Keep common sense in your mind (wink, wink).

 

[Tom D]

just curious. assuming you don't check every appliance on a FHA refi, who is going to tell FHA that you didn't.
your conscious, according to the purist on this blog.

 

[Fernando]

You can always say it was working at the TIME you were there.