Exterior siding contains asbestos

[John Jardine]

If the exterior siding of a house contains asbestos, is it ineligible for an FHA loan? I could not specifically find reference to this kind of siding in 4150.2. But I may not be looking in the right place....!

Thanks in advance for your help!

 

[Mr Rex]

John, Are you sure its asbestos? Typically requires examination under a microscope. I assume you are talking about the old siding typically referred to as Transite. Why not reveal that the subject has what appears to be Transite siding (you can google and provide the definition) and let the DEU decide if its eligible or if they want to waive it, if it indeed contains asbestos. I stopped carrying a microscope with me on inspections a few weeks back.

BTW, have you thoroughly researched market data to see if any market reaction to Transite siding?

 

[Ms. Janet]

Mike Radford]John, Are you sure its asbestos? Typically requires examination under a microscope. I assume you are talking about the old siding typically referred to as Transite. Why not reveal that the subject has what appears to be Transite siding (you can google and provide the definition) and let the DEU decide if its eligible or if they want to waive it, if it indeed contains asbestos. I stopped carrying a microscope with me on inspections a few weeks back.

I didn't realize that ,Mike. For one thing, I thought asbestos was ok unless pieces were broken so that's the only I usually flag it; FHA or conventional. That siding is very common here.

 

[Mr Rex]

Its common here too Janet, and from what I can tell no market reaction compared to wood, actually is much more durable than wood IMHO. But the only way to be sure its asbestos is to put the fibers under the scope. Same thing with insulation, old floor tiles, old roof shingles, pipe insulation etc etc. Its like calling all mold that is black in color "black mold", you better have a laboratory make that call. Black mold is typically used to refer to Strachybotris (sp?) the bad stuff, but lots of fungus are black and many that aren't black are also toxic. I refrain from tossing about such terms unless I have proof, that usually comes from someone with more book learning than me.

 

[Ms. Janet]

SO, are you suggesting box 4 if it has the transite siding? broken or not?

 

[Smokey Bear]

Asbestos abatement can be very expensive, and penalties of $10k a DAY for illegal emissions if it's done wrong. Unless the asbestos is "friable" (easily broken into small fragments or reduced to powder) it's best to leave it in place. If you want new siding, you might be able to just add it over the existing siding.

I use a general asbestos disclaimer if the subject was built prior to the year the outlawed the stuff, can't remember the year offhand though. If what you're seeing is friable, take a picture, and do it subject to inspection by an expert.

 

[Mr Rex]

What she said, kinda. I would make sure that I put the intended user (and the dreaded relyers (sp)) on notice that it might contain asbestos. Think of an angry, paranoid, allergic to air, sue at the thought of a drop of a hat homeowner that finds out after the fact that they have paid $4 for a house that has asbestos siding and it will cost $1-$2 to remove it properly. Of course as Cynthia says its much simpler to encapsulate with new siding, and its legal to do so. But its going to be:new_multi: in the report. CB4 is a friend of mine. The sting of CB4 is tempered by the fact that there is no market evidence of stigma, at least around here. My .02.

 

[John Jardine]

Thanks to all for your quick replies. I will tread cautiously with this one, to be sure. Re: Is is really asbestos? I'm being told by the lending officer who got his information from the listing agent. The order is coming Monday, so I haven't seen the property yet.

 

[Don Clark]

"Subject siding appears to be the type of material that is referred to as ACM(asbestos containing material). This can only be verified by scientific methods beyond the expertise of the appraiser".

ACM's are not a problem unless they are "friable". That is, if the material is broken down, powdery in appearance, and is likely to become wind blown. Most likely at least 50% of all houses in the USA built prior to the late to early 1980's have asbestos siding on them, and many are now covered up with aluminum or vinyl siding.

FHA has never questioned any house I have everr appraised when I used the term "Asbestos" in referring to the siding. Not in over 20+ years.

 

[Greg Bell]

HUD Does not care about asbestos siding..Just don't grind it off and inhale the dust.I have done hundreds of HUD Repo's and that has never come up.Asbestos insulation is another matter.