Judge Rules Appraiser/Lender Owe no duty of care

[Huds_Harm]

Its not, its not your concern either if u get funding. You should get a home inspection.

I should also get a home that meets all FHA MPR.

 

[shrubberyvaluation]

I should also get a home that meets all FHA MPR.

Great get a home inspector. You only care about FHA MPR cause you think you can get $$$, not because you actually care. I doubt you would be hollering on here like this over peeling paint if you didn't have unexpected expenses you were not happy with.

The appraisal is just for the lender to decide whether or not to loan, there is no duty of care for you from the appraiser. You could argue the lender or HUD, but not the appraiser.

 

[Huds_Harm]

Great get a home inspector. You only care about FHA MPR cause you think you can get $$$, not because you actually care. I doubt you would be hollering on here like this over peeling paint if you didn't have unexpected expenses you were not happy with.

The appraisal is just for the lender to decide whether or not to loan, there is no duty of care for you from the appraiser. You could argue the lender or HUD, but not the appraiser.

A home inspector does not determine FHA MPR and a home inspection is not required. Unfortunately this is not over peeling paint and
an FHA appraisal is to determine the following:

• The physical condition of existing building improvements is examined at the time of the appraisal to determine whether repairs, alterations or inspections are necessary - essential to eliminate conditions threatening the continued physical security of the property.
• Required repairs will be limited to necessary requirements to:
• • protect the health and safety of the occupants (Safety)
• • protect the security of the property (Security)
• • correct physical deficiencies or conditions affecting structural integrity (Soundness)
• A property with defective conditions is unacceptable until the defects or conditions have been remedied and the probability of further damage eliminated. Defective conditions include:
• • defective construction
• • other readily observable conditions that impair the safety, sanitation or structural soundness of the dwelling

If the appraiser doesn't believe so or doesn't want to determine that the appraiser should not accept the assignment.

 

[Fernando]

As SurfCat mentioned, why don't you renegotiate the loan. Lender doesn't want to take back your property.
Is it you really like the property but want compensation for the septic cost?

 

[Fernando]

A home inspector does not determine FHA MPR and a home inspection is not required. Unfortunately this is not over peeling paint and
an FHA appraisal is to determine the following:

• The physical condition of existing building improvements is examined at the time of the appraisal to determine whether repairs, alterations or inspections are necessary - essential to eliminate conditions threatening the continued physical security of the property.
• Required repairs will be limited to necessary requirements to:
• • protect the health and safety of the occupants (Safety)
• • protect the security of the property (Security)
• • correct physical deficiencies or conditions affecting structural integrity (Soundness)
• A property with defective conditions is unacceptable until the defects or conditions have been remedied and the probability of further damage eliminated. Defective conditions include:
• • defective construction
• • other readily observable conditions that impair the safety, sanitation or structural soundness of the dwelling

If the appraiser doesn't believe so or doesn't want to determine that the appraiser should not accept the assignment.

Appraiser tries to do his/her best. Mistakes happen. Why would an appraiser intentionally leave out a material fact?

 

[Tiffany Gibbons]

A home inspector does not determine FHA MPR and a home inspection is not required. Unfortunately this is not over peeling paint and
an FHA appraisal is to determine the following:

• The physical condition of existing building improvements is examined at the time of the appraisal to determine whether repairs, alterations or inspections are necessary - essential to eliminate conditions threatening the continued physical security of the property.
• Required repairs will be limited to necessary requirements to:
• • protect the health and safety of the occupants (Safety)
• • protect the security of the property (Security)
• • correct physical deficiencies or conditions affecting structural integrity (Soundness)
• A property with defective conditions is unacceptable until the defects or conditions have been remedied and the probability of further damage eliminated. Defective conditions include:
• • defective construction
• • other readily observable conditions that impair the safety, sanitation or structural soundness of the dwelling

If the appraiser doesn't believe so or doesn't want to determine that the appraiser should not accept the assignment.

"readily observable". Like above ground?

 

[Zoe]

So glad I don't have a septic tank. So glad I don't have to appraise homes with septic tanks.
It appears septic tanks can be costly if there are major issues.
Again, local real estate agents should be aware of septic tanks and potential problems and should have veered buyer to get experts in checking out the septic tanks.
Appraisers and lenders are not experts and only in helping getting a loan with help of government agency to help those who can't afford to buy a home and in this case, a costly loan if taken back.

I agree. Code enforcement if there is any could have notified the buyer about problems and stopped the sale until it was resolved by the owner. They have equipment and permits and many other things that can determine possible issues on well water and septic system. Home inspector would likely have to determine the location through some govt authority or rely on homeowner how far the distance is between the two. Appraiser don't know that.

 

[Zoe]

A very nice disclosure for appraiser to FHA would have been appraiser cannot determine the distance between water well and septic system. Would have been very nice disclosure.

Then the ball falls in FHA's court. FHA don't have to approve the loan. Who laid the septic? Who did the water well?

It also falls in the lender's lap. Square on both. Would require extraordinary assumption in the final opinion of value.

 

[Zoe]

Trust me appraisers are not certifying to anything related to septic systems or water wells, etc.

Most are clueless related to either mechanical system. It is best to disclose from appraiser that they don't know.

Your best target would probably be local code if you have any or whoever laid the septic and water well so close together. Lenders and FHA sure as hell don't know.

 

[Zoe]

Another question. Should FHA or lender required local code or other professionals give them an answer?

Most likely. Appraiser is last person to go after.