FHA Handbook Inspection Requirements And Fee

[Evincere]

Address all appliances, are they considered real or personal property & do they function correctly.

UW stip. Address "all" Appliances which were most definitely not new out of the box, and while they worked during the inspection who is to say or guarantee that next week or upon closing and occupancy they will still be functioning "correctly", or working to full capacity as designed. Address all appliances - list individually or en total? Also had to go back and embellish contract review commentary regarding appliances being personal property, or not, even though the contract itself clearly states what/which appliances were being conveyed as personal property.

This like everything else that affects us regarding liability can only get worse. Will they be creating a UAD type form for us to record frig and oven appliance temperatures, cycle completion of DW and microwaves, estimated remaining economic life of installed light bulbs?

I am so done with FHA. I am not at all convinced that even writing disclosure and indemnification addenda to cover every possible liability will cover the potential for undiscovered liability.

Appliances were operational and functional as of the date of appraisal. The FHA appraiser does not guarantee that the
property is free from defects inclusive of appliances. The Appraiser is not a home inspector and does not warrent or
estimate the remaining economic life of appliances or mechanical systems. Should a detailed, more indepth inspection regarding components,
functions such as expected temperatures', function and adequacy of mechanical or electrical systems etc. be required Appraiser recommends a home inspection completed by a licensed home inspectior. The appraisal establishes the value of the property for mortgage insurance purposes only.

 

[Evincere]

Address all appliances, are they considered real or personal property & do they function correctly.

UW stip. Address "all" Appliances which were most definitely not new out of the box, and while they worked during the inspection who is to say or guarantee that next week or upon closing and occupancy they will still be functioning "correctly", or working to full capacity as designed. Address all appliances - list individually and comment on functionality? Also had to go back and embellish contract review commentary regarding appliances being personal property, even though the contract itself clearly states what is being conveyed as personal property.

This like everything else that affects us regarding liability can only get worse. Will they be creating a UAD type form for us to record frig and oven appliance temperatures, cycle completion of DW and microwaves, estimated remaining economic life of installed light bulbs?

I am so done with FHA. I am not at all convinced that even writing disclosure and indemnification addenda to cover every possible liability will cover the potential for undiscovered liability.

Photo addenda included stove with burners lit like a Christmas tree, frig doors open with lights on, all bathroom fixtures (sinks/tubs) running water, and toilets flushing,

I'm thinking anyone who chooses to do FHA should operate more like an Insurance company does with regard to premiums. Collect enough of a fee up front for each appraisal to cover any potential losses, liability or claims in the future,

Appliances were operational and functional as of the date of appraisal. The FHA appraiser does not guarantee that the
property is free from defects inclusive of appliances. The Appraiser is not a home inspector and does not warrent or
estimate the remaining economic life of appliances or mechanical systems. Should a detailed, more indepth inspection regarding components,
functions such as expected temperatures', function and adequacy of mechanical or electrical systems etc. be required Appraiser recommends a home inspection completed by a licensed home inspectior. The appraisal establishes the value of the property for mortgage insurance purposes only.

 

[nicholz12]

Just got an email from the MA Board of Real Estate Appraisers indicating about 1/3 of the FHA appraisers in MA have dropped FHA work. Interesting.

 

[CANative]

Evincere... WADR... you're sort of being ridiculous.

 

[Riick]

Evincere... WADR... you're sort of being ridiculous.

Until HUD/FHA re-writes that freakin' manual and takes out the word MUST, or provides *specific* written direction that
you don't need to crawl over joist in attic, or need to crawl through filth in crawl space, I'll pass on FHA work.
OTOH, it's never been a large part of my business, so it's easy to pass it up.

 

[Elliott]

Only the brave, who aren't afraid of "must" and "shall" will do FHAs.

 

[KeyWhiz]

UW stip. Address "all" Appliances which were most definitely not new out of the box, and while they worked during the inspection who is to say or guarantee that next week or upon closing and occupancy they will still be functioning "correctly", or working to full capacity as designed.

Since when have appraisers been responsible for any changes that occur after the effective date? Is something else in the feared 4000.1? That we must make our appraisals applicable beyond the effective date until closing or occupancy? Gee, I hope the house doesn't burn down the next day.....


....get a clue people.

 

[Michigan CG]

Since when have appraisers been responsible for any changes that occur after the effective date? Is something else in the feared 4000.1? That we must make our appraisals applicable beyond the effective date until closing or occupancy? Gee, I hope the house doesn't burn down the next day.....


....get a clue people.

The problem is we live in a litigious society and FHA is typically little to no down payment and when Joe and Jane move in and the frig doesn't work of the AC dies after its first week they look to place blame. That roof that looks good but leaks is $4,000-$15,000. Joe and Jane see that the appraiser observed the roof and it appeared to have two years remaining and it didn't are looking for someone to buy them a roof because they don't have the money.

While the appraiser did nothing wrong they have to defend the litigation and that costs money and time.

An order came over today for an FHA assignment and I noted that it didn't have a crawl space but was a home that is most likely 80 years-old so I told the client $450; order cancelled.

I don't really care, I am busy without the headache.

The justice will be the many appraisers who live in their own little world and have no idea what is coming up and have 30 stips for the new FHA as interpreted by the AMC.

While the requirements have changed, they are not that drastic. However the fun part begins on how the client interprets the new requirements. There will be AMCs who get it all wrong and will be asking for things not in the new FHA requirements. God help the Streetlinks appraisers.

 

[CANative]

 

[KeyWhiz]

The problem is we live in a litigious society and FHA is typically little to no down payment and when Joe and Jane move in and the frig doesn't work of the AC dies after its first week they look to place blame. That roof that looks good but leaks is $4,000-$15,000. Joe and Jane see that the appraiser observed the roof and it appeared to have two years remaining and it didn't are looking for someone to buy them a roof because they don't have the money.

While the appraiser did nothing wrong they have to defend the litigation and that costs money and time.

I just can't live my life being scared over everyone who might try and sue me over every little thing. And if I were that type of person, then I would certainly be in the wrong business.

While the requirements have changed, they are not that drastic. However the fun part begins on how the client interprets the new requirements. There will be AMCs who get it all wrong and will be asking for things not in the new FHA requirements. God help the Streetlinks appraisers.

That's true. I'm curious to see what the AMC's will come up with. I accepted my first FHA order since the change a couple of days ago. Gotta jump at some point and see how it goes. After considering everything the last few weeks I've come to the conclusion is that 90% of it is stuff I either have been doing or should have doing more carefully anyway. The silliness about attics and crawlspaces and appliances I believe can dealt with just by having some common sense: fully inspect attics and crawlspaces when it is reasonable to do so. Make sure the appliances aren't completely broken. Report what I've done and not done and why. If I start getting told to do more than I feel is reasonable, then I'll be done with FHA or at least from that AMC.

If someone wants to sue me because a dishwasher started leaking a week after the effective date when I said it was "functional"? Guess I'll just have to take my chances with that.

In other news, I crossed a busy street last week and didn't get hit by a bus. But, in today's world of people driving fast while texting? You never know, do you....