FHA and structural defects

[Tim The Enchanter]

I think the redwood stump foundation wins some kind of prize for funkiness. Wow.

 

[CANative]

I think the redwood stump foundation wins some kind of prize for funkiness. Wow.

The owners would make a great subject for a PBS "American Experience" episode. Two guys, back from 'Nam, went to Woodstock, followed the tail end of the SF counter-culture movement, Marin County psychedelic music scene (Jefferson Airplane, Dead heads, etc.), bought 80 acres for almost nothing in a remote Sonoma County forest, and hacked out a house from redwoods and recycled house parts.

 

[Terrel L. Shields]

a lot of temporary columns used

We see concrete blocks (loose), stones, etc. but rarely any wood since termites would decimate them very quickly. I tend to caveat that away and call for structural inspection

lets see if you have any dips when you are 100!

 

[Tom4value]

The handbook explicitly states the observation is not technical in nature. But as appraisers who make hundreds of property observations a year, we can tell when something is "just not right."

What's the big deal with conditioning the appraisal on inspection, as long as our primary motivation is NOT limiting liability (also in the handbook - or maybe the 4150.2.)

Nothing. If it is "just not right" to you, by all means recommend an inspection. I have just heard appraisers say that they call for an inspection "just to be sure". This means that they are to too lazy or skittish to make a decision. This may mean unnecessary added cost and apprehension for the parties.

 

[Tim The Enchanter]

The owners would make a great subject for a PBS "American Experience" episode. Two guys, back from 'Nam, went to Woodstock, followed the tail end of the SF counter-culture movement, Marin County psychedelic music scene (Jefferson Airplane, Dead heads, etc.), bought 80 acres for almost nothing in a remote Sonoma County forest, and hacked out a house from redwoods and recycled house parts.

Living the dream. Cool for them.

 

[Mr Rex]

I didn't read through the entire thread but will add my 2 cents. As a Home Inspector, we are taught that any structural members that were obviously added after the original construction require a Structural Engineer's inspection. I see it all the time, dry stacked block or stone, screw posts, 4 x 4 or 6 x 6 etc. I can pretty much tell which ones are acceptable to a Structural Engineer, but is never my call to make.

 

[Econobot]

Include that "get a home inspection" addenda in your report. More importantly don't insert your subjective, potentially bias, uninformed opinion in the report by calling for an inspection. I've seen this done and it always winds making the appraiser look like a jackass in the end. Typically the engineer comes back and says, "no problems found" at which point the borrower and lender feel you just wasted time and money. Moreover, usually borrowers don't have extra money as these properties are usually cheap comparatively speaking. Unless you fall through a floor, see the dirt through the floor, or see open sky through the roof you're best to stick to valuing as is instead of trying to make something that's old perfect. Obviously using similar comparables is key... Don't try to be a hero, you'll end up with zero future work form the lender, again I've watched it happen. When you start turning in home inspection hybrid appraisals you'll soon be greeting at Walmart or becoming a top poster on this forum because you don't have work....

 

[djd09]

So the program has been self-funded for 80+ years at no cost to the taxpayers.

"The Federal Housing Administration, the government insurer of low down-payment loans, told Congress on Friday it needs $1.7 billion from the Treasury to pad its insurance fund. This is higher than expected, due to the fact that FHA is now insuring fewer loans. "

https://www.cnbc.com/2013/09/27/mortgage-bailout-not-over-FHA-to-draw-17-billion.html

 

[J Grant]

Agreed but does homeowner added column and beam support incorrectly by undersized material and temporary (not solid metal) metal columns constitute a structural defect to make the report subject to a structural engineer or just report observations clearly. I report what I see and typically state subject to structural engineer inspection. I'm trying to determine is just reporting enough in these older homes that are livable or does FHA expect subject to what could be classified as incorrectly installed structural support. ( loads are not distributed correctly and columns are being used to carry load they are not intended to carry).

FHA:
Structural ConditionsThe Appraiser must report on structural conditions so that the Mortgagee can determine if the foundation and Structure of the Property will be serviceable for the life of the Mortgage.The Appraiser must perform a visual observation of the foundation and Structure of the improvements and report those results. If the Appraiser notes any structural issues, the Appraiser must address the nature of the deficiency in the appraisal where physical deficiencies or adverse conditions are reported and require inspection.

The Appraiser must examine the foundation for readily observable evidence of safety or structural deficiencies that may require repair. If a deficiency is noted, the Appraiser must describe the nature of the deficiency and report necessary repairs, alterations or required inspections in the appraisal where physical deficiencies or adverse conditions are reported.

The Appraiser must notify the Mortgagee of the deficiency of MPR or MPS if the basement is not free of dampness, wetness, or obvious structural problems that might affect the health and safety of occupants or the soundness of the Structure

Defective Conditions Requiring Repair The nature and degree of any noted deficiency will determine whether the Appraiser must address the deficiency in the narrative comments area of the report under “condition of the property” or “physical deficiencies” affecting livability or structural soundness.iv.Conditions Requiring Inspection by a Qualified Individual or EntityThe Appraiser must notify the Mortgagee and make the appraisal subject to an inspection by a qualified individual or Entity when the observation reveals evidence of a potential safety, soundness, or security issue beyond the Appraiser’s ability to assess. The Appraiser must report and describe the indication of a particular problem when requiring an inspection of any mechanical system, structural system, or other component requiring a repair.

Call or email FHA and ask them, appreciate your reporting back what they suggest...these are grey areas of when to make subject to an inspection and might come down to a house by house basis. If FHA can provide guidance on your question would be valuable.

 

[Econobot]

"The Federal Housing Administration, the government insurer of low down-payment loans, told Congress on Friday it needs $1.7 billion from the Treasury to pad its insurance fund. This is higher than expected, due to the fact that FHA is now insuring fewer loans. "

https://www.cnbc.com/2013/09/27/mortgage-bailout-not-over-FHA-to-draw-17-billion.html

....the top posters on this forum seem to spew the most misinformation, or at least information that doesn't correspond to factual information when presented?? smh