VA required repairs

[alm082180]

Hi all,

I just wanted to express my frustrations on the VA appraisal process. My fiance and I just reached the appraisal stage of our property purchase of a foreclosure. The house it self is in great shape. Our inspector spent nearly 5 hours checking it out, top to bottom. New roof, windows, heating and central A/C system. Solid structure and the recently added addition he said "was structurally overkill" in regards to how well it was built. Needless to say; the home has cosmetic issues. The appraisal came back with some issues that they said required correction. I have to say, I was quite shocked by what they required to be repaired. They said the carpets needed to be replaced or repaired. Missing closet doors needed to be installed. Bedroom doors with a golf ball size hole repaired or replaced. Front door repainted and a 6 inch by 12 inch section of the Sheetrock next to the shower be repaired ( it had received water spray from the shower and the Spackle was crumbling). We explained the the selling bank would make no repairs and that there were 8 other offers; ours beat the highest by under $1000.00. They estimated the repair cost at only $1500.00 although a contractor would shurly charge more then that. I offered to give them up to $10,000.00 to put in escrow to pass the loan contingent on us making the repairs after sale. They refused. I'm a bit baffled then, that the appraisal came in higher in it's current state then we are purchasing it for and that we have the cash on hand to make the nessassary repairs and they are still refusing unless the selling bank repairs them. I'm now out the $300.00 appraisal fee and have since started the process of obtaining a conventional non goverment backed loan for the property. Please let me know your feedback of this situation.

Thanks

 

[Don Clark]

VA does not quarentee a loan on an "As Is" condition property. VA Has minimum property standards that all VA appraisers must condition the appraisal on, regardless of where you live. The VA appraiser has no choice in the matter. You may if you wish, send a letter or an e-mail to the lender directed to the lenders SAR/Underwriter requesting that some or all of these conditions be waived. The final decision is up to the SAR/Underwriter, not the appraiser. Also, you should realize that the Department of Veterans Affairs is the client, not you, not the lender. Also, all VA Appraisals may be used by an VA Approved lender, so you are not even listed as the borrower on a VA appraisal. The name "Any Qualified Veteran" is listed as the borrower. So, if you decide not to purchase the property under the noted conditions being repaired, some other lender can use the appraisal for some other qualified veteran.

There is a reason for the VA having minimum property requirements. They are to insure that the property is Safe, Sound & Sanitary and that is sufficient collateral for the loan.

You, the lender, and others can work for a solution to these issues. They are for your protection as well as for the collateral of the loan.