HUD-92051

[Rick Neighbors]

I just reviewed my textbook from a recent FHA Appraisal course that I took, looking for some guidance on filling out a 92051.....could not find anything.

I will call the powers that be tomorrow, but thought I would throw something out there for discussion.

The appraisal performed was on an older home with "deferred maintenance" issues. This was a Reverse Mortgage loan also.

I addressed the deferred maintenance issues....like peeling paint, exposed wood, and some rotted wood. This is a 52 year old home. I based my value "subject to" home being brought up to average condition.

Lender send inspection requirements which stated " fix rotted wood and repaint". Repaint what.....the fixed wood or the whole house, like it needs?

Now, after doing the inspection, I find rotted wood replaced, and painted. Most of the rest of the house still has peeling paint and exposed wood surfaces. House is still not in average condition. Is it the lender's call as to what they want to finance?

I don't want to sign off that the repairs were made, and later have someone state that I indicated the whole house was repainted. Can we put a reference on the 92051 to " See attached addendum" and explain?

What say you veterans?? Thanks in advance for your wisdom.

Rick

 

[Pamela Crowley (Florida)]

State what was done and there are areas where the paint is peeling and other exposed wood areas. Hope you took photos. Let the DEU decide what to do next.

 

[debbie graham]

Hi, I know this doesn't help right now, but I know that you have to pin point every area that needs work, describe in detail where the work needs to be done, even let them know that all paint chips must be removed from the area.
Debbie Graham

 

[Rick Neighbors]

Repairs

Well, I have a call into the local office of HUD. I'm sure that they will call me right back! :new_smile-l:

I listed the needed repairs in the original report, but the lender does not seem to be requiring that they all be done to fund the loan, and I guess that is their call. But my value was based on the home being brought up to " average " condition. So far it hasn't.

Hence, my reluctance to sign off on a short list of repairs that is worded rather vaguely.

Rick

 

[Rick Neighbors]

HUD

Well, HUD did finally answer my question......kinda. They agreed that peeling paint and exposed wood was definitly an issue on a 1952 model home. But, they referred me to the 1-800-CALL-FHA.

So the run around begins.

Rick

 

[Rick Neighbors]

1-800-call-FHA

Well, here is the final from HUD's FHA Dept.

I is allowable, and probably advisable, to attach an addendum to the HUD 92051 with a more in depth explanation of what was done to a home.

In other words, in my instance, the lender's request for:
1) Repair rotted wood and repaint.

I can say " See Attached Addendum" and explain that only the rotted wood was repaired and repainted, not the complete home. And that the rest of the home still has exposed wood and peeling paint.

So, in short, when you call them, they assign a Reference # to your question, answer your question, and you have a person's name and a reference number to put in your file.

I feel much better now. I'm not sure how the lender will feel about my extra efforts to clarify this issue.

Rick

 

[JoTetherow]

i seem to recall

seems to me that i remember something coming down from FHA for reverse mortages that states that with a reverse mortgage, as long as the owners sign something that says no children are or will be living in the house that peeling paint is ok.

anyone else remember this?

jo

 

[JoTetherow]

found it

>http://www.hudclips.org/sub_nonhud/....1[no]&SECT1=TXTHLB&SECT5=HSGH&u=&p=1&r=5&f=G
>
>here is the section:
>
>E.
>
>In certain situations, the borrower will be required to treat any >defective paint surfaces after closing for properties built before 1978, >and comply with the Lead-base Paint Poisoning Prevention Act (LPPPA) >requirements.
>
> 1)When children under the age of seven will be residing in the property, > the borrower must treat the defective paint surfaces in accordance with > LPPPA requirements.
>
>2)If children under the age of seven will not be residing in the property, >the borrower can certify to that fact in writing, and the treatment of >defective paint surfaces will not be required. This certification can >accompany the appraisal or the approval of the property can be conditioned >on the receipt of this certification.

 

[debbie graham]

repairs

Hey, Rick, how are you handling the value issue?
Debbie

 

[Rick Neighbors]

Value

My value was based on the home being brought up to average condition. So far it hasn't.

Got another call from someone at HUD today. He was very helpful and pointed out that many Appraisers don't realize that they can check more than one box at the end of the appraisal. For instance, iCB3 & CB4 could both be checked on the same appraisal.

Food for thought.

Rick