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Edwin
391 Posts |
Posted - 07/11/2008 : 1:29:22 PM
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I'm working with an 83-year-old widow, whose home needs some repairs to meet FHA lending standards. The home has had no real maintenence or upgrades since her husband died 30 years ago. Besides the roof, most of the repairs are very minor. In all, they should total less than 10% of the RM loan amount. One of the repairs is to a section of the foundation. When her late husband expanded the family room 35 years ago, he left an 8' section of the cement foundation open, so he could easily add a deck. He passed away before the deck could be started. The widow simply screwed up some sheets of plywood to cover the gap. FHA appraiser now says the gap has to be filled in. With cement, blocks or bricks. To avoid pushing the 15% repair/escrow limit, we'd like to find a cheaper way to meet FHA requirements. I thought about installing two "magnum" suppots, like those installed on manufactured homes, and then reskirting the opening. Any suggestions? |
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rtrefflich
2655 Posts |
Posted - 07/11/2008 : 2:17:10 PM
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| If cost is the issue I would look at CL in the area and see if someone is giving away old rocks or bricks from a previous project. The labor shouldn't be too much to fill it in and the main cost will be in the brick, rock or cement. |
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Edwin
391 Posts |
Posted - 07/11/2008 : 3:05:27 PM
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Thanks for the suggestion, Rich. I will look into that. However, labor costs would be the issue, because the work has to be signed off when it's completed. Every contractor out there wants to supply their own materials, because they mark them up... I even thought about a HS or TC building trades class, but I don't have time. I need to close this loan by the end of the month, so funds for the roofing repair can be dispersed by August. It'll start to rain out here by September, and the roof's gotta be done by then... |
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crankyusi
604 Posts |
Posted - 07/11/2008 : 3:13:24 PM
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| Contractors are hurting big time too. They're even bartering on CL. I'd throw an ad out there on CL for labor only and see what kind of response you get. |
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Edwin
391 Posts |
Posted - 07/14/2008 : 2:46:19 PM
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Just an update. Got nothing off CL in the past 4 days. I did get the name of a conttractor from the local Rebuilding Together chapter who's putting in a reduced bid. Any other insights as to how I can get this done cheaply? Or find a different way to meet FHA building standards? |
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crankyusi
604 Posts |
Posted - 07/14/2008 : 3:20:49 PM
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| Maybe a phone call to the local cement delivery company, or rockery or talk to one of the delivery drivers...they'll know who is looking for work. Whenever I needed a plumber or electrician or drywaller, I'd go to the local wholesaler (sometimes a Home Depot too) and look for their trucks and sometimes just wait there for them or go inside where they would be buying parts. Chances are it would be one of the employees (don't want the owner who would charge full rate) who would be more than happy to find extra work. |
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Megaloans
16 Posts |
Posted - 07/14/2008 : 3:34:33 PM
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| If its over $35K, cant you do a 203K |
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Hopland
1969 Posts |
Posted - 07/14/2008 : 7:22:34 PM
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| deleted. misread original post |
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Edwin
391 Posts |
Posted - 07/15/2008 : 09:03:36 AM
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Greg, I would love an appraiser's view on this! It would be beneficial to know what an appriaser would find acceptable, even if it may be unconventional or abnormal. Although I can't always advocate hillbilly engineering, I don't think every foundation repair must require the services the marble cutter union, either... |
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rmcinturff
351 Posts |
Posted - 07/15/2008 : 7:12:09 PM
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Edwin, see if the client's church has a handyman who can assist in that repair to help keep her in the house with your help. You'd be surprised what a good church can do for you other than remind you who's boss.
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MisterVA
6228 Posts |
Posted - 07/15/2008 : 8:12:53 PM
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| Maybe a bulkhead could be installed. The hole is there anyway. Still will need cement, but it could be attractive if stuff can easily be brought out of the basement and brought in to be stored. |
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Hopland
1969 Posts |
Posted - 07/16/2008 : 07:20:10 AM
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Unless the appraiser is some sort of foundation contractor or specialist and found that the condition was compromising the structural integrity of the building or has an adverse effect on livability, soundness, or safety and health I don't see why the condition was made in the appraisal. Those concrete walls are usually not supporting the structures weight but rather enclosing the crawl space. It's been 35 years and the house is not settling or sagging is it?
This condition is not specifically covered in the MPR's (minimum property requirements for existing structures). It's not listed in Appendix D to the 4150.2 (copied and pasted below).
Appraisers are advised not to require repairs or inspections simply as a means of limiting liability. Ask the appraiser to cite the source for the specific repair requirement of "filling the gap with concrete, blocks or bricks." If it's not structural I don't see what is wrong with the widow's solution (except for a termite problem from earth to wood contact. She could use treated lumber at the ground.)
quote: 10. Foundations All foundations must be adequate to withstand all normal loads imposed. Stone and brick foundations are acceptable if they are in good condition. The appraiser must review the conditions in VC-8 for evidence of conditions that could indicate safety or structural deficiencies that may require repair. > If the foundation is deficient, mark "YES" in VC-8 and prepare the appraisal "as-repaired" subject to the repair of the deficiencies. 11. Crawl Space To ensure against conditions that could cause the property to deteriorate and seriously affect the marketability of the property, it is required that: 3-13 4150. 2 (3-6) o There must be adequate access to the crawl space; the appraiser must be able to access the crawl space for inspection. Access is defined as ability to visually examine all areas the crawl space. Specifically, the minimum distance is 18 inches. o The floor joists must be sufficiently above ground level to provide access for maintaining and repairing ductwork and plumbing. o The crawl space must be clear of all debris and trash and must be properly vented. o The crawl space must not be excessively damp and must not have any water ponding. > If these requirements are not met, mark 'YES" in VC-8 and prepare the appraisal "as-repaired" subject to repair of the deficiency.
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Edwin
391 Posts |
Posted - 07/16/2008 : 09:26:43 AM
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Greg, You are a blessing! The information you've provided should be invaluable. I'm going to send it on to the lender, and ask that the appraiser's concerns be re-evlauated. There is no wood-to-earth contact. There are two wooden posts to support the floor, and they are on top of a 4" cement ridge. The wooden "skirting" is secured to the posts, and overlaps the cement by 1". Nor is there any floor sag. I think the appraiser is being cautious due to the fact that this is a reverse mortgage, and he's considering possible future concerns... |
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rainmand
3644 Posts |
Posted - 07/16/2008 : 4:54:06 PM
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>>Ask the appraiser to cite the source for the specific repair requirement of "filling the gap with concrete, blocks or bricks."
The Civil Engineer that's giving the inspection will have everything you need to know in his report ... it'll be fully documented and if he says it needs to happen, then it needs to happen.
Why not pay for the work when the loan funds? That way you avoid the 15% limit. The company I use, On the Level, has always accepted payment from my clients when the loan funds. Drop me a line at www.HUDReverseMortgageLender.com and I'll email you Janis's phone number. She's the Account Representative I work with. |
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Hopland
1969 Posts |
Posted - 07/16/2008 : 5:02:50 PM
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I'm all for inspections when necessary but who mentioned that an inspection by a civil engineer was being called for? The OP stated that the "FHA appraiser now says the gap has to be filled in. With cement, blocks or bricks." Seems like the appraiser may have exceeded his/her area of expertise. If there was an issue, an inspection should have been required.
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Edwin
391 Posts |
Posted - 07/16/2008 : 5:05:06 PM
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Raymond, Thanks for the additional insight. I'm trying to get this stip addressed after the loan funds, but the appraiser has made several comments about it on the appraisal. I've been working with my AE at Liberty Reverse, and with Greg's comments, we're trying to steer the underwriter's decision. The good news is that, even if we take all the appraiser's estimates and double them, we'll be under the 15% limit on escrowed repairs. |
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rainmand
3644 Posts |
Posted - 07/17/2008 : 08:10:56 AM
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>>who mentioned that an inspection by a civil engineer was being called for?
If the Manufactured Home doesn't have a 433A recorded (the Preliminary Title will tell you), chances are very good the manufactured home doesn't have a HUD approved permanent foundation. A Civil Engineer will need to inspect the foundation, to ensure it adheres to HUD's guidelines, resulting in an Inspection Report. It's that report that'll tell you what needs to be done to the foundation, not the Appraisal. After it's brought up to code, another Inspection will happen and HUD tags will be issued after the Report says the foundation is okay. |
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Edwin
391 Posts |
Posted - 07/17/2008 : 08:50:43 AM
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It's not mfg. house, it's a 1930's stick-built, with several owner-made additions from the 1950's, using a lot of reclaimed lumber, cem ent blocks, windows and etc. I was just thinking "outside the box" when earlier I mentioned mfg. home-styled foundation supports... I am looking for something very cheap AND very fast. Mostly because the "repair" really isn't needed, but now that it's been noted, I have to get if signed off... |
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Hopland
1969 Posts |
Posted - 07/17/2008 : 08:58:36 AM
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| Raymond... I made the same mistake early on. See my post above that says "deleted." For some reason I thought the discussion was about a manufactured home. |
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