FHA "subject to"

[cooper]

The way I understand FHA is that, if repairs are needed, the report should be completed "subject to" these repairs. The repairs in this case are safety issues, including lack of railing on a deck and a loft area on the 2nd level. I have a lender that won't accept a "subject to" appraisal. They want the appraisal to be marked "as is" with a cost to cure for the repair items noted. Can it be done this way?

 

[Riick]

Short answer is NO!
Long answer is NO!!!

Report has to be "AS REPAIRED"
Sure you could add estimated cost to cure, but why bother?

HUD FHA is very clear on Health/Safety issues, they won't loan until they're cured.
- find the page in the handbook, and send a copy to you contact - with pertinent parts highlighted
(since with this kind of stupidity, they usually can't read well.)

I'll bet that this one came out of an AMC
.

 

[cooper]

Thanks. I just wanted to make sure I was right before I refused
to change it and yes, its from an AMC.

 

[timd354]

The way I understand FHA is that, if repairs are needed, the report should be completed "subject to" these repairs. The repairs in this case are safety issues, including lack of railing on a deck and a loft area on the 2nd level. I have a lender that won't accept a "subject to" appraisal. They want the appraisal to be marked "as is" with a cost to cure for the repair items noted. Can it be done this way?

NO

This lender is either ignorant of the FHA guidelines or a criminal enterprise....and my bet is on the second possibility.

 

[ken351]

The way I understand FHA is that, if repairs are needed, the report should be completed "subject to" these repairs. The repairs in this case are safety issues, including lack of railing on a deck and a loft area on the 2nd level. I have a lender that won't accept a "subject to" appraisal. They want the appraisal to be marked "as is" with a cost to cure for the repair items noted. Can it be done this way?

safety, soundness, security is the precondition for FHA loan. Cost to cure is for items no related to the three S's. If they can't read the HUD letters, then direct them to the videos on line on HUD site!!

 

[Riick]

Thanks. I just wanted to make sure I was right before I refused
to change it and yes, its from an AMC.

My bet on the AMC is: LandAmerica (and possibly Foundation Financial as "lender")
Went through exactly this scenario with LandAm in the Spring ...then I fired them.

If we would all fire them (and every AMC) an ugly sore on the a55 of humanity would disappear.
On the other hand, it may be healed by thier own actions:
I wonder how they like that big IndyMac account they were crowing about recently, and their new WAMU account.
(ROTFLMAO!)
.

 

[Webbed Feet]

The way I understand FHA is that, if repairs are needed, the report should be completed "subject to" these repairs. The repairs in this case are safety issues, including lack of railing on a deck and a loft area on the 2nd level. I have a lender that won't accept a "subject to" appraisal. They want the appraisal to be marked "as is" with a cost to cure for the repair items noted. Can it be done this way?

Cooper,

FHA/HUD have complaint sources available. Stuff like this should be turned into them so they know who is making these kind of requests. If all appraisers did this, it wouldn't be long and the flood of complaints would stack up against any AMC pulling this crap to the point FHA would be forced to scutinize absolutely anything involving those AMCs.

Webbed.

 

[Riick]

^^^
Excellent advice Duck.

COOPER -- Do you have their demand in writing?
If not, call and say you want to avoid any "misunderstanding", can you send exactly what you need to me - in an email?

 

[Edward OConor]

Cooper,

FHA/HUD have complaint sources available. Stuff like this should be turned into them so they know who is making these kind of requests. If all appraisers did this, it wouldn't be long and the flood of complaints would stack up against any AMC pulling this crap to the point FHA would be forced to scutinize absolutely anything involving those AMCs.

Webbed.

I agree to a point.

I feel that you need to weigh the business cost of trying to work it out with the AMC as opposed to turning them into big brother.

You need to remember if you **** off the AMC by going around them their back, you are only a few keystrokes away (made by some clerk) from being removed/blocked from their list as uncooperative. Business lost!!!


Another possibility: The lender changes to an AMC that doesn't send you work. Business lost!!!


Fair? No, but a reality, and possible.

 

[Riick]

You need to remember if you **** off the AMC by going around them their back, you are only a few keystrokes away (made by some clerk) from being removed/blocked from their list as uncooperative. Business lost!!!
Another possibility: The lender changes to an AMC that doesn't send you work. Business lost!!!

"With Friends like that,you don't NEED enemies"
With a client like that, you don't need their business - they're nothing but heartburn.
Sure, go along to get along.... and when they stupidly send such a report on to FHA, result can easily be you (or someone else) are dropped from the FHA list.
-- THAT could be costly!

DO THE RIGHT THING