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zrh
18 Posts |
 Posted - 10/11/2008 : 11:39:19 AM
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Posted - 10/11/2008 : 11:34 AM
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Appraisers is stating that because there are a few places of some paint that is peeling (1 window trim & little section on house beside the window)is affecting the "livability"
of the property. Here is dictionary definition-fit or suitable to live in or with; "livable conditions. Based on that how does this issue apply?
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zrh
18 Posts |
Posted - 10/11/2008 : 12:07:29 PM
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Here is appraiser reply:
Other Health and Safety Deficiencies
Address all health and safety issues, physical deficiencies or adverse conditions that affect the livability, soundness or structural integrity of the property. The nature and degree of any health and/or safety issues will determine whether to address said deficiency in the narrative comments area of the report under “condition of the property”, or “physical deficiencies” affecting livability or structural soundness.
JR- The above paragraph clearly states where the comments should be placed.
Lead Based Paint Hazards
For any home built prior to 1978, check for evidence of defective paint surfaces, including: peeling, scaling or chipping paint. For all FHA insured properties, correction is required to all defective paint surfaces in or on structures and/or property improvements built before January 1, 1978 in accordance with 24 CFR Part 35. Provide a detailed description and identify the exact location of any deficiency under “physical deficiencies” affecting livability.
JR- The above paragraph clearly states that the comments about defective paint should be put in the physical deficiencies section. It also shows in context that defective paint affects livability. The answer to the question for that section "Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property" is YES as there is 1) a physical deficiency (defective paint) and 2) it affects the livability, per HUD's context above.
JR- The relevant field in the chart below is: Physical deficiencies or adverse conditions. As the answer is YES, an explanation is required. It is also necessary to condition the appraisal on the “repair or alteration of the condition.” Per HUD, correction is required to all defective paint surfaces in or on structures and/or property improvements built before January 1, 1978 in accordance with 24 CFR Part 35
Does the appraiser even need to bring up on appraisal because does not affect "Livability". How does this issue affect "livability"? |
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MortgageBoarder
3975 Posts |
Posted - 10/11/2008 : 12:15:58 PM
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| I told you lead based paint is a stiffler for FHA on the other thread. Stop fighting it, tell your borrower to spend $20 and fix the repairs, then have your appraiser complete a 442. Capiche? |
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zrh
18 Posts |
Posted - 10/11/2008 : 12:19:52 PM
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Here is appraisal comments from appraisal:
Cracking
and peeling paint was noted on many areas of the exterior. Per owner, subject exterior was recently painted, however, it does not
appear that the surfaces were properly prepared. The defective paint surfaces are minor and the cost-to-cure would be minimal.
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zrh
18 Posts |
Posted - 10/11/2008 : 12:20:31 PM
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Here is appraisal comments from appraisal:
Cracking
and peeling paint was noted on many areas of the exterior. Per owner, subject exterior was recently painted, however, it does not
appear that the surfaces were properly prepared. The defective paint surfaces are minor and the cost-to-cure would be minimal.
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MortgageBoarder
3975 Posts |
Posted - 10/11/2008 : 12:25:56 PM
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LOL, I just said it would only cost about $20 and the appraiser even says they are minor and the cost would be minimal. I don't get what you are trying to fight here, why have you not instructed your client to GIT ER DONE??
Is this your first loan? |
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Annemieke Roell
674 Posts |
Posted - 10/11/2008 : 12:26:27 PM
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quote:
Originally posted by MortgageBoarder
I told you lead based paint is a stiffler for FHA on the other thread. Stop fighting it, tell your borrower to spend $20 and fix the repairs, then have your appraiser complete a 442. Capiche?
Unless the house was built prior to the year lead paint was banned (1976 or 1978 ... don't have my reference material on this computer) some peeling paint is not a health or danger issue. It must be mentioned in the report but does NOT require a Subject To.
If the situation DOES require action, tell the borrower to slap some paint on and ask the appraiser to issue a 1004D (which is what a 442 is called now). |
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MortgageBoarder
3975 Posts |
Posted - 10/11/2008 : 12:44:35 PM
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Thanks for adding that, and the year is 1978.
quote:
Originally posted by Annemieke Roell
quote:
Originally posted by MortgageBoarder
I told you lead based paint is a stiffler for FHA on the other thread. Stop fighting it, tell your borrower to spend $20 and fix the repairs, then have your appraiser complete a 442. Capiche?
Unless the house was built prior to the year lead paint was banned (1976 or 1978 ... don't have my reference material on this computer) some peeling paint is not a health or danger issue. It must be mentioned in the report but does NOT require a Subject To.
If the situation DOES require action, tell the borrower to slap some paint on and ask the appraiser to issue a 1004D (which is what a 442 is called now).
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lgruey
635 Posts |
Posted - 10/11/2008 : 12:53:46 PM
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quote:
Originally posted by zrh
Here is appraiser reply:
Other Health and Safety Deficiencies
Address all health and safety issues, physical deficiencies or adverse conditions that affect the livability, soundness or structural integrity of the property. The nature and degree of any health and/or safety issues will determine whether to address said deficiency in the narrative comments area of the report under “condition of the property”, or “physical deficiencies” affecting livability or structural soundness.
JR- The above paragraph clearly states where the comments should be placed.
Lead Based Paint Hazards
For any home built prior to 1978, check for evidence of defective paint surfaces, including: peeling, scaling or chipping paint. For all FHA insured properties, correction is required to all defective paint surfaces in or on structures and/or property improvements built before January 1, 1978 in accordance with 24 CFR Part 35. Provide a detailed description and identify the exact location of any deficiency under “physical deficiencies” affecting livability.
JR- The above paragraph clearly states that the comments about defective paint should be put in the physical deficiencies section. It also shows in context that defective paint affects livability. The answer to the question for that section "Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property" is YES as there is 1) a physical deficiency (defective paint) and 2) it affects the livability, per HUD's context above.
JR- The relevant field in the chart below is: Physical deficiencies or adverse conditions. As the answer is YES, an explanation is required. It is also necessary to condition the appraisal on the “repair or alteration of the condition.” Per HUD, correction is required to all defective paint surfaces in or on structures and/or property improvements built before January 1, 1978 in accordance with 24 CFR Part 35
Does the appraiser even need to bring up on appraisal because does not affect "Livability". How does this issue affect "livability"?
It affects livability because it is a health and safety concern. It is a HUD guideline and you have to do something about it if you want it to go through FHA. Lead Based paint is a big issue for HUD. Anything that affects the health or safety is going to be a problem. |
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just in kase
474 Posts |
Posted - 10/11/2008 : 11:34:55 PM
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is this a purchase or refi?
if purchase? the real questions is the seller allowing your borrower or painter to cure the issue prior to close. if the borrower does the work equired by appraiser, i do believe the hourly rate and materials can be consider part of thier 3% moneies into the tranasaction. search the 4155 for sweat equity, see if this applys to your transaction.
in some cases, if the seller is a bank, i may be able to preform a escrow hold back for these small issue to be corrected post close.
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MisterVA
6570 Posts |
Posted - 10/12/2008 : 06:23:30 AM
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| Just have them paint it. Depending on how much area needs to be covered, it probably will take as much time to go to the paint store as it will to paint the area. Welcome to homeownership. It isn't a catastophe like a crumblimg foundation. If the seller wants to sell, then either have the seller do it or allow the buyer to do it. Don't make it more complex than it really is. |
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Annemieke Roell
674 Posts |
Posted - 10/12/2008 : 07:02:28 AM
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quote:
Originally posted by MisterVA
Just have them paint it. Depending on how much area needs to be covered, it probably will take as much time to go to the paint store as it will to paint the area. Welcome to homeownership. It isn't a catastophe like a crumblimg foundation. If the seller wants to sell, then either have the seller do it or allow the buyer to do it. Don't make it more complex than it really is.
That is what I tell clients. Even if the paint doesn't match and is used as a base, who cares. Just get it painted. |
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Okierider
366 Posts |
Posted - 10/12/2008 : 08:57:30 AM
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quote:
Originally posted by Annemieke Roell
quote:
Originally posted by MisterVA
Just have them paint it. Depending on how much area needs to be covered, it probably will take as much time to go to the paint store as it will to paint the area. Welcome to homeownership. It isn't a catastophe like a crumblimg foundation. If the seller wants to sell, then either have the seller do it or allow the buyer to do it. Don't make it more complex than it really is.
That is what I tell clients. Even if the paint doesn't match and is used as a base, who cares. Just get it painted.
And make sure loose chips are removed PRIOR to painting |
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MortgageBoarder
3975 Posts |
Posted - 10/12/2008 : 09:26:21 AM
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| LOL. Seriously... |
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Hopland
2078 Posts |
Posted - 10/12/2008 : 10:36:26 AM
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If one thing is found with defective paint and the improvements were built before '78 than don't forget that EVERYTHING on the property with paint must be inspected and repaired.
Stop crying about this stuff if you expect to do work for FHA. |
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MisterVA
6570 Posts |
Posted - 10/12/2008 : 11:07:59 AM
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quote:
Originally posted by Hopland
If one thing is found with defective paint and the improvements were built before '78 than don't forget that EVERYTHING on the property with paint must be inspected and repaired.
Stop crying about this stuff if you expect to do work for FHA.
You are late to the party. He's already had his ears sufficiently burned. |
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jnseabolt
22 Posts |
Posted - 10/13/2008 : 04:29:44 AM
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| I just did a FHA loan where the borrower was a General Contractor and he had quite a few things going on when we did the appraisal "as is" but lender required him to finish up everything and have everything completed before closing. |
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Hopland
2078 Posts |
Posted - 10/13/2008 : 06:32:32 AM
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That would be the correct procedure. The appraisal should not have been marked "as is" unless it was a 203k.
Less than 90% complete requires "subject to completion per plans and specifications"
More than 90% complete reqires "Subject to the following Repairs or Alterations" Under Construction, more than 90% complete with only minor finish work remaining (buyer preference items i.e., floor coverings, appliances, fixtures, landscaping, etc.).
The difference between the two is that the latter condition does not require construction exhibits. |
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