Repair funds held in escrow

[Slb123]

I have a situation that I am unsure of and cannot find an answer in Handbook 4000.1 I am getting ready to complete an appraisal where the home inspection came back and there is an issue with some mold in the crawl space insulation. The repairs are under $5,000 and there is a contract to the addendum that the repair will be completed after closing and the money for the repair will be held in escrow. I don't know if I complete the appraisal 'as is" or 'subject to" since the repairs will be completed after closing. Anyone know the answer to this?

 

[Dublin ohio]

I would say subject to. Mention the arrangement in your contract analysis.. We just report. Lender makes the call on how they want to handle their end.

 

[glenn walker]

I have a situation that I am unsure of and cannot find an answer in Handbook 4000.1 I am getting ready to complete an appraisal where the home inspection came back and there is an issue with some mold in the crawl space insulation. The repairs are under $5,000 and there is a contract to the addendum that the repair will be completed after closing and the money for the repair will be held in escrow. I don't know if I complete the appraisal 'as is" or 'subject to" since the repairs will be completed after closing. Anyone know the answer to this?

Ask the Lender if they are doing the escrow hold back and how to handle it.

 

[J Grant]

I have a situation that I am unsure of and cannot find an answer in Handbook 4000.1 I am getting ready to complete an appraisal where the home inspection came back and there is an issue with some mold in the crawl space insulation. The repairs are under $5,000 and there is a contract to the addendum that the repair will be completed after closing and the money for the repair will be held in escrow. I don't know if I complete the appraisal 'as is" or 'subject to" since the repairs will be completed after closing. Anyone know the answer to this?

If the mold is confined tothat area and not a health hazard then imo no need to make it subject to. Comment on it and the escrow holdback you learned about in comments added in your appraisal. What the lender or FHA does after that out of your hands.

 

[sputnam]

The repairs are part of the contract. The buyer is buying an as repaired property. Dsiclose the mold, analyze and summarize the contract... including comments about the escrow... and make the appraisal subject to completion of the repairs.

 

[Ariba]

If the mold is confined tothat area and not a health hazard then imo no need to make it subject to. Comment on it and the escrow holdback you learned about in comments added in your appraisal. What the lender or FHA does after that out of your hands.

How would an appraiser know it is contained and not a health hazard? Unless you are a mold expert any mold is a health hazard.

 

[J Grant]

How would an appraiser know it is contained and not a health hazard? Unless you are a mold expert any mold is a health hazard.

The home inspector stated it was in one area on their report.

 

[Ariba]

The home inspector stated it was in one area on their report.

Did the home inspector also say it was or wasn’t a health issue?

 

[glenn walker]

The lender gets a Contractors estimate to remove mold and mitigate it so it wont be a H & S Issue, Then said lender does not release the funds until all work has been completed.
The report is treated as a ( "As is Repaired ) Thats it nothing more or less to discuss LMAO

 

[Dublin ohio]

The home inspector stated it was in one area on their report.

Mold spores are what you have to contain. Once they're airborne the problems can only increase.