FHA cost to cure or not.

[alebrewer]

Hope this helps…

Hope this helps who?

 

[Dale Floyd]

A FHA cost to cure is not a value issue. It's the cost of repairing or replacing a item that's typically under a few thousand dollars and a Escrow Holdback is often done. If it's something large enough to be a valuation issue than it's a mandatory repair or replacement.

This is why say a $500.00 item can be a cost to cure versus a required repair.
We typically could do a escrow holdover account for up to say $5,000 if it wasn't a Health or Safety issue on a FHA.

This prevents a hold up on a closing where a buyer needs to move in but can get the repair done on his own time. Sometimes even an odd size window frame that took a special order. During Covid we did many cost to cures and escrow hold backs.

Absolutely. We are saying the same things. You were from the banking world too, right?

 

[timd354]

Yes some are basic in fact most are but why would the appraiser expose any repair costs simply because the client is asking. FHA gives us an out and really any repair can be more extensive then first thought. Would it not be prudent to air on the side of caution and not give a cost to cure and let the client seek out those if they so choose? Either way, I feel we have the right to give repair costs or not.

It is absolutely stunning how some appraisers claim to posses no expertise about home construction or building costs and then wonder why some entities are doing everything they can to get rid of appraisers. I cannot tell you how many times I see addendums attached to an appraisal that basically state that the appraiser does not know Sh*t and has no expertise in anything regarding the property they have appraised.....this type of crap does not exactly inspire confidence in the profession.