Heating Oil Tank in Basement

[spartan2010]

Hi everyone, first post here. Much of my Google searches on this issue led me to the Appraisal Forum. This site looks to be a great resource and i look forward to contributing in the future.

Our issue at hand involves a 1950's home recently inspected that had an old heating oil tank in the basement. The tank was no longer in use as the home is equipped with FWA heating. This is a Conventional appraisal. I understand that FHA has guidelines on on dealing with buried oil tanks but I could not find specific Fannie Mae Guidelines addressing oil tanks, buried or in basements. Is it required to include the tank as an environmental hazard within the appraisal report and is the tank required to be removed?

Any insight on this issue would be greatly appreciated.

 

[Michigan CG]

Mention the existence of the tank in the basement and move on. It is most likely empty. There are no Fannie requirements to remove old tanks in basements.

 

[TEL2002]

In the past when I came up against these, there was never an issue when I....(1) took pictures of the tank, floor & walls around/under the tank, (2) stated the tank was not in use, (3) stated there were no indications of leaks or punctures in the tank...see photos, and (4) stated that tapping on the side of the tank indicated the tank was apparently empty.

Make sure the pictures are good and show everything about the tank. If they have junk piled over/under/around the tank, ask them to move everything.

Really not much different from having an empty barrel in the basement, or having 4 old used tires in the basement.

I did not do FHA , so I'm not sure how they would feel about a tank.