FHA Reverse Mortgage, extensive mold problem

[Zavia]

Hi,

I am being asked for a cost to cure - I thought cost to cure could not be given on FHAs but seems it's now acceptable...? I think this is beyond the scope of both the appraisal and my expertise, however client is not taking no (or subject to a required inspection) for an answer.

Thanks in advance,
Zavia

 

[TJSum]

For FHA appraisals, when you complete "subject to repairs", there always is a cost to cure associated with the repair items.

However, when calling for an inspection, no cost to cure applies (from the appraiser), that is up to the expert who will do the inspection, it is up to them to comply with the DEU request. How can we submit a cost to cure on an item we are not qualified to make judgements on?

 

[JonGalt]

Be very careful about providing a cost to cure for a mold problem. Are you an expert regarding mold? If not then how would you know how extensive the problem is? Is the type of mold dangerous?

I've had a few mold problem propereties in the past few years. I always have checked "subject to" an inspection by a mold remediation expert or "subject to" mold remediation by a qualified mold remediation expert. The last time I had one of these the subject ended up having mold throughout the attic and the mold was the health hazzard kind. The home had the mold remediated at considerable expense and the lender asked me to "certify" that all required remedaition had been completed. Say what? Like I would be able to certify it was gone? I explained that I would require the mold remediation companies certificate of mold remediation completion (or something to that effect) and would be glad to scan a copy and include it in the satisfactory completion report. The lender was not happy that I wouldn't do it their way but sent me the form. At some point the loan closed and all was fine, of course the client was ticked at me and never sent me another order as I would not do as I was told.

My advice, explain to them how things will be. Do not let them tell you how to do your job. Be prepared for the worst from your client but watch out for mold

 

[Zavia]

TJSum, the report would be completed "subject to inspection...." not "subject to repairs...." Regardless, your point regarding expertise is mine exactly.

 

[Zavia]

Be very careful about providing a cost to cure for a mold problem. Are you an expert regarding mold? If not then how would you know how extensive the problem is? Is the type of mold dangerous?

My advice, explain to them how things will be. Do not let them tell you how to do your job. Be prepared for the worst from your client but watch out for mold

Yes, this is my feeling exactly and I'm trying to tell my client (which is an appraisal company, BTW) that this can't be done and they're not liking it.

 

[realbiz]

Just say no! Have the expert give them the cost to cure, unless you are qualified. I had a rental once with a mold problem due to a second story leak. What I thought the cost to cure was totally different then what I paid the expert to cure.:Eyecrazy:

 

[redfish]

The cost to cure could be the cost of an inspection by a qualified professional. Some mold requires remediation and some doesn't (just bleach and paint). We are not qualified to determine is the substance you are seeing is even mold, or if the mold-like substance presents a health and safety hazard. Put the pictures in the report, condition the report on an inpsection and provide a cost for the inspection. That is your cost to cure.

 

[RSW]

Revised Appendix D page D-2 states,

In the performance of an FHA appraisal, the appraiser must denote any deficiency in the appropriate section(s) (site issues in the site section, improvement issues in the improvements section) of the appraisal report. The appraiser is to note those repairs necessary to make the property comply with FHA’s Minimum Property Requirements (MPR) or Minimum Property Standards (MPS) together with the estimated cost to cure. The lender will determine which repairs for existing properties must be made for the property to be eligible for FHA-insured financing.