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FHA Carpet

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Michigan CG

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I appraised a hoarder home recently and it was very dirty. The home was cleaned out completely but the walls were very dirty and the carpet was trashed. In my report I put that the carpet was at the end of its economic life, which it was.

Some bureaucrat at FHA is going to reject the loan because of the carpet. Dumbest thing I have ever heard. Is there a supervisor at FHA or someone at FHA the lender or Realtor can call?
 

sputnam

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We are appraisers. It's none of our business whether or not FHA rejects a loan. Our job is to develop and report an opinion of value.
 

CANative

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In my report I put that the carpet was at the end of its economic life, which it was.
Why use commercial lingo in a residential report. Since there is no MPR for floor coverings you should not use "incendiary" phrases and terms.

Cosmetic repairs are not required; however, they are to be considered in the overall condition rating and valuation of the property. Examples of cosmetic repairs would include surface treatments, beautification or adornment not required for the preservation of the property. For example, generally, worn floor finishes or carpeting, holes in window screens, or a small crack in a windowpane are examples of deferred maintenance that do not rise to the level of a required repair but must be reported by the appraiser.
 

Michigan CG

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We are appraisers. It's none of our business whether or not FHA rejects a loan. Our job is to develop and report an opinion of value.
Realtor wants to know if there is anyone she can call.
 

CANative

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She can call the HOC. Worn carpeting is not an MPR with a required repair.
 

Michigan CG

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Why use commercial lingo in a residential report. ....
Commercial lingo?

I guess if you call that commercial lingo it is because I am a commercial appraiser.... :)
 

CANative

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You know what I mean. Most residential appraisers would not use that phrase to described crappy carpet. To the UW (who probably is not really the DEU) that phrase translates to a required repair. The phrase is usually used (in FHA reports) for long lived items such as roofing and heating systems.
 

Mountain Man

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Georgia
Mich, I actually have to agree with Greg here...report floor coverings as carpet and move on. Only if it's torn up and a tripping hazard to equal an MPR would HUD care. Hey, we don't make the rules, we just report what we see as the client wants based on their criteria. Not saying it can't be adjusted for in appeal, marketability or condition, but unless it's a tripping hazardous just let it go. Another alternative is to recommend the agent have ALL of the carpet and tack strips removed. HUD does allow plywood as an acceptable flooring. Again, it can be a marketing issue, but it's perfectly allowable for FHA financing.
 

RSW

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Tennessee
She can call the HOC. Worn carpeting is not an MPR with a required repair.
Not unless it effects the security of the subject property. does it make the subject a C5 or C6? Most lenders want at least a C4.
 
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