utilities turned off

[prayzr]

I understand that the FHA appraiser is to check a representative number of electrical, plumbing and mechanical features, but with the hundreds of vacant, bank owned homes in my area, i'm always waiting days and days for someone to get the lights back on and water heater fired up. Is there any way around this requirement?

 

[hglenbetts]

Turn down the assignment??

 

[ZZGAMAZZ]

Manual says to notify the client before proceeding, although this is an aspect of the HUD SOW that IMO contradicts common sense; why not conduct the inspection "subject to" xxxx utility functioning appropriately . . .

 

[CANative]

although this is an aspect of the HUD SOW that IMO contradicts common sense; why not conduct the inspection "subject to" xxxx utility functioning appropriately . . .

Because there are systems and other issues that need to be checked that require the utilities to be on.

 

[Robert Gonsalves]

FHA's Test - #1 Question - My Answer Was The Following - I Passed
If the property is vacant, the appraiser should note in the Improvements
Section under “condition of the property” whether the utilities were on
or off at the time of the appraisal. If off, condition the appraisal on a
satisfactory re-inspection when the utility that was off at the time of
the appraisal is back on, to be sure it does not require alterations,
repair or further inspection.
Just My Thoughts ?
Robert G.

 

[Caterina Platt]

Robert,

Not only is that the correct answer on the test, I also think it's the best answer in the long run for our businesses.

How many times have you found out you'd been thrown under the bus for a delay? You notified all parties that the inspection couldn't take place until everything was complete, or the utilities were on, or whatever the reason. You were being nice and helping the borrower/client avoid the extra inspection fee and hassle with a final.

Now everyone is in a lurch as the rate lock is expiring and it's all that blankity blank appraiser's fault because he/she didn't get out there in time. BS!

If the utilities aren't on, I will make it subject to. I will most often query my appointment contact about the utilities, but if I find out different during the inpsection, it's not going to be a 'stop and wait' unless I have very explicit instructions to do so.

 

[teh l33t]

I don't go to a house without confirming that all utilities are turned on first...

 

[Doug Meyer]

I don't go to a house without confirming that all utilities are turned on first...

EXACTLY CORRECT

 

[ZZGAMAZZ]

I quote from today's FHA seminar handbook, which cited 2006 HOC Reference Guide, Chapter 1, pp 1 - 19:

"When utilities . . . are NOT on at the time of the appraisal, the appraiser is to condition . . . for a certification stating that all utilities have been tested and that they appear to be in good working order. The cert must be done by a FHA roster appraiser, a home inspectior, an inspector from the local building dept, an FHA compliance inspector, a professional in the specific field . . . or another person determined to be qualified by the D.E."

This is a paraphrase because the standards still refer to the V.C. sheet, but it appears that the appraisers does not need to prolong the process by waiting unnecessarily for the owner to engage the utilities.

[[--smug icon--]]

 

[Michael Tipton]

Appendix D, page D-15

Mark the box signifying the occupancy status at the time of the appraisal. If vacant, the appraiser should note, in the "Improvements" section under "condition of the property," whether the utilities were on or off at the time of the appraisal. If off, condition the appraisal on a satisfactory re-inspection that the utility that was off at the time of the appraisal does not require alteration, repair or further inspection.

http://www.HUD.gov/offices/adm/hudclips/handbooks/hsgh/4150.2/41502appdHSGH.pdf​