FHA Safety and Saleability Issue

[Sally Rea]

I am working on an FHA report for a home with what I consider to be a safety issue. The home has a rear yard block wall that on the back side is tilting outwards toward an agricultural field. On a connecting side of the wall there is a large crack created from the stress. There are homes on both sides of the subject property. Since this is an exterior issue I am not sure how to approach it. Any suggestions will be appreciated. -Thanks!

 

[CANative]

Tough decision. I think I would condition the appraisal on repair (fix it, remove it, replace it).

 

[RSW]

I agree with Greg.

 

[Mike Boyd]

I agree with Greg.

I also agree except for the "remove it" option. A wall or a fence is an important feature to most prospective homebuyers.

 

[Greg Bell]

If it's a safety issue then repair or remove.If not , it's cosmetic..

 

[PBKlingensmith]

Thats scary, I agree with repair or replace too. It then puts it on the underwriter to make the decision. We are to report, they can agree and call for repair or waive repair.

 

[ZZGAMAZZ]

PB: I agree in principle with what you say but every single report I do comes back requiring cosmetic as well as safety/security/soundness issues resolved. This from numerous lenders including brokers and direct lenders. It does not appear that the DEU desk is making the distinction. Maybe just me with a small sample size of jobs but it's been 100%.

 

[Rrebera]

safety issue

safety issue-note that it needs to be removed if it cannot be secured....