VA - Are Holes In The Ceiling A Cosmetic Issue Only

[ROBERT JONES]

Subject property is REO selling as-is - C5 condition but livable. Are ceiling holes and patched drywall cosmetic issues or mandatory repairs? It has always been my understanding that exterior issues are mandatory - interior issues are cosmetic and not mandatory....but I always like to double check.

 

[MICHAEL O'BRIEN]

Robert, from direction I have received over many years, if the holes are small - then it is generally considered cosmetic. However, if the holes are large enough to adversely affect marketability, or allow for access to wires, pipes, etc. in the walls - then it would be a recommended MPR repair in my opinion.

 

[ROBERT JONES]

Robert, from direction I have received over many years, if the holes are small - then it is generally considered cosmetic. However, if the holes are large enough to adversely affect marketability, or allow for access to wires, pipes, etc. in the walls - then it would be a recommended MPR repair in my opinion.

The room in question is a combination of unfinished drywall - yet to be taped, and 2 holes maybe 1 foot square each - untouched. They appear to be the result of vandalism.

 

[MICHAEL O'BRIEN]

I feel that two 1 foot holes are pretty significant conditions to me. When I stated small, I was thinking door knob holes in the walls. I would recommend MPR repair, if it were me. Regarding the taping, I had a similar situation in the past. I was instructed by the regional office to consider "taping" cosmetic - so long as the drywall was installed properly on the wall. I would definately include photos and description for the VA and the SAR reviewers. You can also contact the Cleveland staff reviewers, they will give you guidence. Hope this helps.

 

[BOCK FOLKEN]

I require repairs on any drywall hole greater than approximately one inch (1") square. Same for floors or slabs leading to/from conditioned spaces or outdoors. Depending on location and size, these potentially affect air quality, pest control, and wall/fire ratings among other things. Small holes (less than 1" square) such as those left behind by things hung on a wall, or from the ceiling are usually cosmetic. Big holes, or those that appear as damage from vandalism or carelessness or deferred maintenance should be repaired. I'm sure you will get some pushback from realtors and some lenders as to what is cosmetic when a purchase deal is "as-is" condition, but the appraiser is the one that needs to draw the line given any specific situation. Generally we are the eyes of the lender (and the buyer in a purchase) and both want to know what is going on at the property. I would agree that lack of taping is cosmetic unless there are visible voids into the wall or ceiling space.

 

[GWISC]

Look up the VA pamphlet 26-7, chapter 12.06. http://www.benefits.VA.gov/warms/pam26_7.asp

When I am in doubt, I search chapters 11 and 12. Helps to know the rules.

Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised

12.06 Hazards and Defective Conditions


Hazards

The property must be free of hazards which may


· adversely affect the health and safety of the occupants

· adversely affect the structural soundness of the dwelling and other improvements to the property, or

· impair the customary use and enjoyment of the property by the occupants.


Defective Conditions

Conditions which impair the safety, sanitation, or structural soundness of the dwelling will cause the property to be unacceptable until the defects or conditions have been remedied and the probability of further damage eliminated. Such conditions include but are not limited to


· defective construction

· poor workmanship

· evidence of continuing settlement

· excessive dampness

· leakage

· decay, and

· termites.


Drainage

The site must be graded so that it


· provides positive, rapid drainage away from the perimeter walls of the dwelling, and

· prevents ponding of water on the site.



Wood Destroying Insects/Fungus/Dry Rot

Appraisers must look for and report evidence of wood destroying insect infestation, fungus growth, and dry rot in addition toany VA requirement for an inspection of the property by a wood destroying insect inspector.


Continued on next page


January 1, 2001 12-11

 

[glenn walker]

I was told VA did not insure C-5 or C-6 conditions ? Most of the Reos I have seen were done C-4 subject to repairs or inspections being completed bringing the property up to a minimum C-4 average condition. The reason I am asking is maybe your appraisal is dead on arrival anyway ?