So it all comes down to feasibility and this is where it gets a little tough for the appraiser. the Appraiser is always caught between a rock and a hard place. but is he?
1. Does the septic system and drain field appear to be functioning properly? This is just a casual observation of the septic drain field. 4000.1 spells out what the appraiser is to do. The appraiser walks around the septic drain field to observe or detect any smells and also any excessive water or dampness or pooling. If he does then this must be noted in the report. It would also require the appraiser to make it subject TO and inspection by a well/septic company or county environmental health department. under a Hypothetical condition on the 1004. All of you regular members are well aware of what 4000.1 says. You may have to refer to 4000.1, to refresh your memory. The most Current version of FHA 4000.1 is May 20. 2024. There were a lot of changes to this current version.
II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENTD. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages3. Acceptable Reporting Forms and Protocols (08/19/2024)
https://www.HUD.gov/program_offices...nsistent,Single Family products and programs.
The vast amount of the changes had nothing to do with appraisers and our role in this process.
In my county we do not have very many condo projects. So I just focus on SFR. This means I can bypass most of it until page 815 (bottom right corner)
That's where the 1004 SFR stuff is! This Page 843 is where " Limited Required Repairs
The Appraiser must limit required repairs to those repairs necessary to:• maintain the safety, security and soundness of the Property;• preserve the continued marketability of the Property; and• protect the health and safety of the occupants.
Page 842 Utility Services (04/18/2023)i. Definition Utility Services refer to those services consumed by the public such as individual electric,water, natural gas, sewage, and telephone.
Page 845 Individual Water Supply Systems(A)Definition An Individual Water Supply System refers to a potable water source providing water to an individual Property.(B) Standard When an Individual Water Supply System is present, water quality must meet the requirements of the health authority with jurisdiction. If there are no local (or state)
Page 846 The Appraiser must note any readily observable deficiencies regarding the well and require test or inspection if any of the following apply:• the water supply relies upon a water purification system due to the presence of contaminates;• corrosion of pipes (plumbing);• areas of intensive agricultural uses within one quarter mile;• coal mining or gas drilling operations within one quarter mile;• a dump, junkyard, landfill, factory, gas station, or dry cleaning operation within one quarter mile; or• an unusually objectionable taste, smell, or appearance of well water
Page 847 The Appraiser must also be familiar with the minimum distance requirements between private wells and sources of pollution and, if discernible, comment on them.The Appraiser is not required to sketch or note distances between the well, property lines, septic tanks, drain fields, or building Structures but may provide estimated distances where they are comfortable doing so. When available, the
Appraiser should obtain from the homeowner or Mortgagee a copy of a survey or other documents attesting to the separation distances between the well and septic system or other sources of pollution
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Here is my problem: I used to have to compete with a bunch of incompetent Fast Eddie and cheap Charly appraisers coming from Charlotte/Mecklenburg.
I am done ranting.
Retirement from this Profession is wonderful. I do miss it though.
ght