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FHA Appraisal no utilities on?

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Charles Cales

Thread Starter
Freshman Member
Joined
Sep 13, 2004
Professional Status
Licensed Appraiser
State
Arizona
I just did maybe my 3rd FHA appraisal inspection on a REO I was told that the water and power would be on. They were not. What do I do? Write the appraisal subject to?? a 442? to an inspection by a licensed electrician and plumber, subject to an inspection by a FHA compliance appraiser? Can I do the 442 or does somebody else have to go back out?

Thanks
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
When in doubt, read the documents you said you read. HUD Handbook 4150.2 and it's Revised Appendix D. "If property cannot be inspected in it's entirety, notify the lender and reschedule a time when the improvements can be inspected." Call the lender and tell them you need to have the utilities turned on so you can inspect the property.

Yes. You will have to go back and reinspct the property. Charge the lender $100 (IMO).

BTW... FHA doesn't used the 442 (1004D). The proper form would be the CIR (Compliance Inspection Report).
 

Chris Colston

Elite Member
Joined
Jul 24, 2003
Professional Status
Certified Residential Appraiser
State
Florida
What does your FHA/HUD manual advise?

Do you have a copy of the FHA manual with the appendix and the mortgagee letters? If not you should. 4150.2 Appendix D is clear on the utilities issue.

You do not do a 442 for HUD. You complete the Compliance Inspection Report, but only when ordered and NOT before.

Search around the FHA section of the Forum. I'm sure you will find what you are looking for. Make sure you also read the manual and try to find an FHA course either on-line, through HUD or your local AI chapter.
 

Greggnvegas

Sophomore Member
Joined
May 9, 2007
Professional Status
Licensed Appraiser
State
Nevada
Charles, if you were told the utilities were on and they are not, you need to reschedule. I also charge $100 each time to go back to the property. I recently was notified that the utilities were now on in a property that I did a couple of weeks ago. I did go back out and guess what? The water was on, but no power. Another $100 and went out a 3rd time. ok this time.
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Charles, if you were told the utilities were on and they are not, you need to reschedule. I also charge $100 each time to go back to the property. I recently was notified that the utilities were now on in a property that I did a couple of weeks ago. I did go back out and guess what? The water was on, but no power. Another $100 and went out a 3rd time. ok this time.


Not unusual at all. I have, in the past, made more off of reinspections than the original report for that very reason. A little financial pain soon makes one pay attention.
 

Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I always ask if the utilities are on before I go out....that way I don't feel bad about charging a trip fee if they are not. One of the hints I had years ago, too, was to prepare the homeowner that you will need to "look" in the attic. That way, they will clean a path to the attic access (usually in the garage) and even have a step ladder out for you. Saves a lot of hard feelings and trouble if you have to stand there and wait for the homeowner to clean his garage.
 

Lloyd Bonafide

Senior Member
Joined
Jan 15, 2006
Professional Status
Certified Residential Appraiser
State
California
Several times this year on an FHA appraisal, I have been told that all the utilities were on, but at least one was not on. Typically I will finish the report, and make it subject to the water or power being turned on, so I can go back out and re-inspect.

I'm not sure why, but on a lot of REO listings, they have the power turned off at the main breaker, so I just turn it on. One time the water was turned off at the street, and I was able to turn it on. Gas line? I'm not going to touch.
 

Midwest1

Sophomore Member
Joined
Jan 25, 2006
Professional Status
Certified Residential Appraiser
State
Illinois
its not uncommon at all. just had one last week that turned into a fiasco because the ding dongs at the listing office couldn't figure out what was going on. we were told the utilites would be on when we went out the first time and of course they were not. then we we were told to go back and they would be on and only the gas was on. It turns out they had turned on the water but the main valve was off. The agent called 2 hours after we left and asked why we didn't turn it on. I explained our policy is that we don't do that for liability reasons. If the pipes are leaking let someone else turn the knob and find out. All I want to do is check the fixtures. In the meantime they were trying to close the deal in a huge rush. :nono: Luckly our client was very cool about the whole thing and understood it wasn't our fault and had no problem paying us for 3 re-inspections. They were going to try to collect from the seller at the closing because they were the ones with their head in the sand.
 
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