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Structural Issue and FHA

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CGW Appraising CO

Thread Starter
Freshman Member
Joined
Jan 21, 2008
Professional Status
Licensed Appraiser
State
Colorado
I am in an unfamilier area...I have an FHA appraisal for a property and during the inspection observed cracking in areas of the sheet rock that to me indicated the possibility of a structural problem...I informed the client who asked me to hold the appraisal while they sent out a structural engineer. He found that there was a cracked support beam in the crawl space that was the issue. The homeowner had a contractor out and according to them had the issue corrected. What is next? Does the structural engineer go back out and make sure the issue was corrected or do I just go by the work order and receipts? And when I write it up...Do I do a new inspection and do it as it is now and dissclose the issue that was resolved or do I write it up as it was at the original inspection and do a satisfactory competion form? Any help would be appreciated, I have never had this happen before. Thanks.
 

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
First of all I assume the appraisal was subject to for "MPR" repairs.If so , you will need to reinspect the subject after the correction is made.A new URAR is not required.
 

Scott Kibler

Elite Member
Joined
Oct 7, 2003
Professional Status
Certified Residential Appraiser
State
Illinois
Are you competent in such matters to attest that the structural issue has been properly corrected?
 

CGW Appraising CO

Thread Starter
Freshman Member
Joined
Jan 21, 2008
Professional Status
Licensed Appraiser
State
Colorado
Scott,

No I am not that's why a structural engineer went out in the first place...that's my whole question...do they have to pay the engineer to go back out and verify it was done correctly or are work orders and work receipts enough...
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
It sounds like you did not finish the report and were told to "hold off". This is wrong. You should have finished the report and put it subject to a structural inspection. If it were done in this fashion, you job would have been done, and the engineering report would have been submitted to UW for their approval.

It sounds like they wanted you to hold off completing the report until the "repairs" were made so that you can "ignore" the whole thing and make no mention to it. Wrong.

You are not qualified to sign off on this, it is up to the UW to sign off. If you sign off on it then you are liable or if you ignore it completely you will also be liable.

Write up the report subject to a structural inspection and let the client deal with the rest.
 
Joined
Jun 3, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
It's not your job to certify the structural repairs -- have the structural engineer send you a letter saying the problem has been cured. That way, if the problem persists, the engineer is on the hook, not you.

What part of the metro area is the home in? Some areas have expansive soil issues, others don't -- the last structural problem I saw was caused by downspouts draining into the foundation.

I worked in the construction business for 20 years prior to becoming an appraiser -- send me an email if you want more detailed information.
 

CGW Appraising CO

Thread Starter
Freshman Member
Joined
Jan 21, 2008
Professional Status
Licensed Appraiser
State
Colorado
Charles,

I don't have an email address or phone # for you...would appreciate speaking with you.
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
It's not your job to certify the structural repairs -- have the structural engineer send you a letter saying the problem has been cured. That way, if the problem persists, the engineer is on the hook, not you.

What part of the metro area is the home in? Some areas have expansive soil issues, others don't -- the last structural problem I saw was caused by downspouts draining into the foundation.

I worked in the construction business for 20 years prior to becoming an appraiser -- send me an email if you want more detailed information.

Charles, the engineering report should be sent to the UW, not the appraiser. If the appraiser does a "final" based on the letter, then the appraiser is back in the liability loop. UW's sign off on inspections, not appraisers.
 

CGW Appraising CO

Thread Starter
Freshman Member
Joined
Jan 21, 2008
Professional Status
Licensed Appraiser
State
Colorado
TJ,

My client never asked me not to disclose the issue...bas assumption. I see nothing wrong with holding the appraisal while the structural inspection was performed.
 
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