Reverse Mortgage peeling paint

[Lukasz123us]

Just got a call from a lender. We are doing a final inspection on a property that is doing a reverse mortgage. Have some window, electrical, and peeling paint issues. Lender stated that HUD only requires safety items to be addressed. They said peeling paint should be mentioned but does not have to be scrapped and painted as they will leave money in escrow to do this later. First I hear just want to get some other opinions.:new_multi:

 

[RSW]

That's news to me. The DEU can wave the repair but not the appraiser. Ask for the DEU to give you something in writing saying the chipping paint does not have to be repaired.

 

[CANative]

From the appraisers set of responsibilities an appraisal is an appraisal. You condition the appraisal on correction of the MPR deficiency and estimate the cost to cure.

The DEU makes the decisions on how to proceed.

 

[Mr Rex]

Pre 1978? 1234567

 

[Lukasz123us]

Yes pre 1978. I thought I read something if there are no children in the subject the owners can sign off and waive the peeling paint. Cant find it now but I saw this on-line before. But yes first I hear.

 

[Bill Streep]

Pre 1978 it MUST be repaired and the DEU can not waive this.

From 4150.2

Lead Based Paint Hazards
For any home built prior to 1978, check for evidence of defective paint surfaces, including: peeling, scaling or chipping paint. For all FHA insured properties, correction is required to all defective paint surfaces in or on structures and/or property improvements built before January 1, 1978 in accordance with 24 CFR Part 35. Provide a detailed description and identify the exact location of any deficiency under “physical deficiencies” affecting livability.

 

[JSmith43]

Just clear the parts that are done, collect your money. HECM allows escrow of MPR items, no need for seasonal consideration, last I recall. That's a LO problem. Some lenders add supplemental restrictions to the FHA minimum-no way for appraisers to keep track of that stuff unless the information is furnished. I assume your report broke out the estimated cost for the paint repair. If not, break out the estimated cost of the paint repair.

A reminder about the paint repair estimate. Most of you probably know about the EPA rules introduced almost 2 years ago with respect to lead based paint repair. Bids may be higher than you think if a big area needs to be encapsulated. Small repairs are exempt from that requirement. It might be something like 35 SF or less, no special precautions are needed by the contractor except for signs, notifications, records, etc.

All the contractors needed to pay a fee & take something like 8 hours CE.:new_all_coholic:

If small kids live there exemptions may not count. I think the reverse mortgage occupants could do the repairs themselves without precautions under the Death Panel provision (just kidding about the name of the provision).

 

[andrew81]

sound like a scam to me. why not the original appraiser

//edit

for whatever reason the original appraiser is not accepting the assignment; out of business, workload, thinks the property is crap?

now the reverse mortgage/FHA lender is trying to scam the borrower.

maybe it is minor issues; maybe they want you to overlook the paint.

edit///

maybe you are the original appraiser, the first post said "We are doing a final inspection on a property that is doing a reverse mortgage"

edit////

that is alot of maybes, im out... later lol