• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

structurally unsound FHA REO

Status
Not open for further replies.

StephHigdem

Thread Starter
Member
Joined
Jan 5, 2004
Professional Status
Certified Residential Appraiser
State
Idaho
I'm having trouble getting my head around this one. FHA REO property. I have serious doubts about its structural soundness. (The basement floor has been dug down about 2 feet below the foundation walls, I assume to give enough headroom to finish the basement. So picture an oreo where the top cookie is the main floor, white center is the foundation wall going down and the bottom cookie is dirt; the foundation wall at the bottom has no lateral support. Also, the upstairs floor is completely wobbly wonky; not a level stretch to it. I am again assuming the main floor has been remodeled upteen times without permits & who knows what kind of load bearing walls have been moved and or removed.) I've been in contact with the client who has agreed to an "as is" value with no "as repaired" value. My question is, can a simply recommend a structural inspection per client request, or do I have to require one? There is no way this dump meets FHA MPRs (how it got an FHA loan to begin with is beyond me).
Thanks!
 

Tom Woolford

Elite Member
Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I would tell them I can not determine a value with out an engineers report. The property may actually have a negative value. If you do it as is, you are going to have some major extraordinary assumptions without the report.
 

Metamorphic

Senior Member
Joined
Mar 15, 2008
Professional Status
Certified Residential Appraiser
State
California
If the floor of the basement is excavated below the footings for the load bearing side walls, that suggests that the soil taking the weight of the structure is unsupported on that side. I would bet money the foundation engineering was not designed to withstand that kind of bedding condition for any length of time. You might get away with it for a while if the native material is very durable (hard rock or well consolidated sedimentary); but eventually the shear loads will catch up with you. In most cases it would be feasible to excavate like you're describing, put in place some temporary supports, then undermine the existing walls and extend the foundation downward, doing small sections at a time. Effectively you'd be replacing the current foundation with a new, deeper foundation one section at a time to deepen the basement. This is the type of thing you might attempt to repair a situation where differential settling was occuring, to fix an foundation design that was inadequate to the task.

Unless you are an engineer or a geologist with a specialty in foundation design you should punt to someone who is.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks