Questions For FHA

[Ariba]

The FHA regs require you to get that information from the lender or someone before starting an appraisal.. practically though, my expeerinence is that I generally have at least part of the work done before getting the bulk of the inforamtion and in fact hardly ever get the builders warranty.

You should foremost have the FHA case number from the lender before proceeding with a FHA appraisal.

Ron

 

[monicalight]

I have a new question,

I do primarily new/proposed construction FHA appraisals. I recently did an older house(1981) and conditoned the appraisal for repairs. Lender called and said repairs were complete and asked for me to go out and do final. Which form is typically used for this? (I am used to new contruction were someone else does final)

Thanks in advance!

Monica

 

[Ben Vukicevich SRA]

Look in your appraisal software for the CIR (Compliance Inspection Report)

 

[monicalight]

Thanks Ben! I found it...

NEW QUESTION:

yesterday I did an "inspection" on a property that was built in 1921. (I swore I would never do this!!!)kicking myself now...

Anyway, even the though property had some updating ie newer carpet, paint, electrical, ect.)

here is what I found:

1)no vapor barrier at all underneath w/wood piers
2)an addition with a flat roof
3) attic inaccessible due to 14" scuttle
4)mixed iron/copper pipes going to water heater
5)floor feels as if sloping (hard to se evidence since they blew new popcorn on ceiling and retextured all walls)
*though they missed a cabinet that was built high up touching ceiling and there was water stains)
6)some windows painted shut
7)peeling paint on underside of overhangs

That's just a few...I cant think of anything else right now...

anyway, I typically do proposed/new construction and so am curious as to what I should do? do I complete appraisal and condition all this? or is there anything listed that would cause a rejection and if so what is "return incomplete appraisal"

I found the info regarding crawl space however, the whole thing is open to the ground. (dirt, piers touching dirt, then wood flooring above) supposedly they are replacing the wood piers w/concrete but this was not completed at the time of inspection...

What would you do?

Thanks in advance!

Monica

 

[Tim Hicks (Texas)]

Fill our the VC sheet and let the underwriter make repair conditions.

 

[Alan Magill]

An asset manager has asked me to do all of the FHA foreclosures "As Is". I have talked with FHA Denver and they say that if any of the VC is violated the appraisal cannot be as is. I reported that to the lender and said it had to be subject to, however FHA said I could make a statement regarding an "as is" value in the text.

Has anyone experienced this? I have not heard from that Company since after they said that I could do it as is and they cancelled the order.

 

[Jo Ann Meyer Stratton]

FHA REOs appraisals are completed "as is". There there are very specific statements that have to placed on the VC sheet. See Mortgagee Letter 00-27 for all the details of what is required for a FHA REO appraisal assignment and report. there has to be a list of what needs to be repaired and what the cost of repairs will be. Unless the costs of repairs will exceed $5,000, then no list and a statement that the property is ineligible for FHA financing--unless it is turned into a 204K project.

 

[Alan Magill]

Originally posted by Jo Ann Meyer Stratton@May 31 2005, 07:46 PM
FHA REOs appraisals are completed "as is". There there are very specific statements that have to placed on the VC sheet. See Mortgagee Letter 00-27 for all the details of what is required for a FHA REO appraisal assignment and report. there has to be a list of what needs to be repaired and what the cost of repairs will be. Unless the costs of repairs will exceed $5,000, then no list and a statement that the property is ineligible for FHA financing--unless it is turned into a 204K project.

It was not a purchase, but an asset evaluation appraisal. The repairs would have been extensive. I asked my contact why it had to be FHA, but she just said that is what she was told. If it was a market value appraisal why would they need an FHA appraisal?

 

[Farm Gal]

Alan:

What you had was a failure to communitcate, which may be more attributable to the individual you spoke to than yoruself.

Many REO companies are requesting the FHA VC page workup, in an effort to get a standardized from of damages/repair needs (as opposed to FHA requirements).

IF that is the case, you can choose use the VC sheets with VERY specific disclaimers on both the VC pages and on the 1004, indicating that the appraised value is AS_IS and that use of the VC sheets is NOT to be confused with a standard FHA appraisal, but are included "at cleint request" and "for cleint use in standardizing the reporting of observed damages". Put your disclaimers all OVER the report. <_<

Make very VERY sure that the resultant forms are clearly indicated "this report is _NOT_ FHA compliant", and "cannot be used for FHA loan decisionmaking"...

It's just "forms" ... not "_appraisal_" You and your cleint need to be very clear on the concepts! Get the cleint to PUT IT IN WRITING, even if you have to do the writing .

 

[Alan Magill]

Originally posted by Lee Ann@Jun 1 2005, 09:37 AM
Alan:

What you had was a failure to communitcate, which may be more attributable to the individual you spoke to than yoruself.

Many REO companies are requesting the FHA VC page workup, in an effort to get a standardized from of damages/repair needs (as opposed to FHA requirements).

IF that is the case, you can choose use the VC sheets with VERY specific disclaimers on both the VC pages and on the 1004, indicating that the appraised value is AS_IS and that use of the VC sheets is NOT to be confused with a standard FHA appraisal, but are included "at cleint request" and "for cleint use in standardizing the reporting of observed damages". Put your disclaimers all OVER the report. <_<

Make very VERY sure that the resultant forms are clearly indicated "this report is _NOT_ FHA compliant", and "cannot be used for FHA loan decisionmaking"...

It's just "forms" ... not "_appraisal_" You and your cleint need to be very clear on the concepts! Get the cleint to PUT IT IN WRITING, even if you have to do the writing .

Thanks.

The lady was adament that it had to be an FHA appraisal. I explained the disclosures that the Denver office told me that needed to be included, but according to the Denver office of HUD, no FHA appraisals could be done "As Is". It is a moot point now. I have not heard from the client in a while. Jo Ann seems to contradict what the Denver office stated. Thanks Jo Ann that was helpful.
I wonder why the Denver office said it couldn't be done?