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FHA Process Sign In/Join 
posted
Hello all,

Ok, so update on our situation. The appraisal did happen on 10/22 at 2:00pm. I have called the lender every day this week to see if they got it back yet, because any FHA issues that may need repaired we would like to know about so those can be addressed quickly.

Today our agent calls me and says the sellers are getting upset that we don't know anything. They agreed to fix the issues but they need to know what they are.

So now I am upset, afraid the sellers can walk at this point (Does anyone know if this is true?)
I call the lender and he tells me they checked into it and the appraiser was to go this morning and take photos of the comps and the report would be in late today. The broker said he would check online this weekend to see if there is anything and let me know. (Which is very nice of him to go above and beyond)

I asked him to call our agent with that same info, because I'd rather it come from him because I'm sure our agent has to call the listing agent.

So we continue to wait.

Can the sellers walk at this point tho? I mean, it would probably make no sense for them to do that.. unless they had a backup offer?
 
Posts: 28 | Registered: Jul 18, 2013Reply With QuoteReport This Post
Picture of Charming
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I don't know which state you're in, but the appraiser is not a home inspector. The appraiser will evaluate the subject property and compare it to at least 3 other comparable properties to come up with what he considers to be the appropriate price.

The home inspector is the one who will go through the house, preferably within 1 week of a signed contract. The buyers have a certain amount of time, per the contract, to review the inspection report and request repairs. The report is sent to the lender and they will decide if certain items must be repaired to meet FHA standards.

The seller should be concerned about the appraisal. If you contracted at too high amount, your agent did give you recently sold comps? you might have a problem. I hope the appraiser has a reason for taking over a week to take photos of comps. That is a drive by process. The mortgage officer should be all over his case and not let up. If I were you I would be calling the mortgage officer every morning until the appraisal is complete.

Are you discussing your fears and concerns with your agent? S/he should be able to answer your questions based on your state laws and the contract. Your agent needs to also calling the bank and the seller's agent to allay fears.

This message has been edited. Last edited by: Charming,


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Posts: 3510 | Location: Coastal SC | Registered: Jan 10, 2006Reply With QuoteReport This Post
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Was there a home inspection? Were those repairs addressed to the seller. While the FHA Appraiser is NOT the home inspector, the FHA appraser per FHA guidelines can require repairs..i.e. problems with well drain field, distances between well and septic, hand railings along any steps, any "safety" items noted, require window screens,peeling paint issues, lead paint issues, concrete floors without carpet or floor covering, well water testing, overflow of septic, dirt pulled back from wood frame, replacment of roof, replacement of bad wood,including termited wood... and that's all I can think of right now.


I would think the Realtors reviewed this with the parties, and may be why they are anxious to hear.

Personally I never rush an appraiser..through the lender. The appraisers' job is to find the highest and best comps of LIKE kind...to meet the sales price and yes, they have a copy of the sales contract. Sometimes they can,and sometimes,they can't, thus the appraisal comes in low. So, the last thing I want to do is rush them and have them take the time to do their homework seeking out comps.

Speaking of low appraisal --This just happened on one of my deals, and the parties split the difference. The home was over-improved for the neighborhood, with a $35,000 kitchen. My buyer loved the house and closed on it.

This message has been edited. Last edited by: real estate lady,
 
Posts: 9253 | Registered: Aug 14, 2007Reply With QuoteReport This Post
Picture of Charming
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REL, I agree with much of what you posted with the exception that some of the issues would already have been addressed in a home inspection (paint, screens, foundation etc.)

The appraiser did the appraisal on Oct 22, per the OP the work is done he just needs to take photographs of the 3 comps.

I am having my first VA financed sales transaction and so far all is working out very well, considering I've been out of commission the last 3 weeks with a nasty case of strep throat from he!! that will not go away.

The seller had over priced her home by $25,000 with the agreement she would drop the price in a month after listing. Yeah, I know not good but what can you do with sellers. Buyers put an offer in and we negotiated to an agreed price that was $5,000 above what I thought it should sell for.

Let me tell you - the buyer's agent and me were on pins and needles until the appraisal came in - $3,500 above the contract price!!

From past experience with bank appraisals I think good appraisers will meet the contract price, if available to them, if his numbers are close.


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Posts: 3510 | Location: Coastal SC | Registered: Jan 10, 2006Reply With QuoteReport This Post
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Charming...sorry you are not feeling well, and we all hope you get better soon. Good luck and congratulations on your first VA deal!

While repairs in the home inspection can be negotiable IF both parties agree, FHA can come along after that inspection and REQUIRE REPAIRS THAT MAY NOT EVEN BE ON THAT INSPECTION, OR NEGOTIATED OUT BETWEEN PARTIES..peeling paint removal and repaint, installation of screens, install floor covering over concrete slab and.or install hand bannister... just to name a few on FHA's list of repair requirements ..as an example. FHA repair contingencies must be performed by the seller and not the buyer. This is why Realtors make sure the following clause is in the Sales contract "This sale is contingent upon FHA Financing and seller to comply with all FHA contingencies."
On the FHA Federal Required Sales Contract Addendum there is a space to insert a "dollar limit for repairs" which can be exceeded by repairs (FHA contingencies) called for by the FHA appraiser.

Same for VA.

Sometimes homes don't even qualify for FHA AND VA BECAUSE THEY ARE NOT BUILT TO FHA AND VA SPECS, or don't meet FHA guidelines. The Realtors know what they are doing and going through the steps necessary and required
by FHA (or VA) to get the parties to the closing table.

You better believe those contingencies must be done and there is a re inspection by FHA (APPRAISER) before CLEARED TO GO CLOSING.
I have had hundreds of FHA and VA transactions in my day... and believe me, closing will be held up until FHA contingencies are met, and met correctly.

Realtors are worth their weight in gold believe me, as some of the funniest stories I have heard in the business...involve FHA contingencies, re-inspections...and trying to close by deadline.

This message has been edited. Last edited by: real estate lady,
 
Posts: 9253 | Registered: Aug 14, 2007Reply With QuoteReport This Post
Picture of Charming
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I didn't disagree about the specific issues that would be fha/va inspection questions. It was many are raised by the home inspection and a home inspector familiar with fha/va requirements is worth his weight in gold because he is going to be inspecting the house weeks before the appraiser usually shows up.

We are waiting to see how the difference between the inspection report and the appraisal comes out as far as screens. The homeowner didn't like having screens and left all but one in the boxes in the attic. The home inspector noted them on his report and the appraiser said missing screens in his report. Not a problem, because they are all there but one (we think the garage never had a screen.) Plus, as you are aware, being on the coast 3 windows have lost their seals and the home owner is waiting for a response from the company that mfg them because they should still be under warranty.

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Posts: 3510 | Location: Coastal SC | Registered: Jan 10, 2006Reply With QuoteReport This Post
Picture of real estate lady
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Charming sounds like you deal is in good shape. I was posting for additional info for the OP.and..
as for the OP, best to continue.. checking with your Realtor and not to worry about back up buyers.
Realtors work hard to keep deals together.

This message has been edited. Last edited by: real estate lady,
 
Posts: 9253 | Registered: Aug 14, 2007Reply With QuoteReport This Post
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Please explain about window screens, if not having a second floors, are still required. ? I don't care for screens on my windows, I have double pane glass in all windows, an use AC pretty much year round.
Frankly, I took them all out, don't like how they look in windows.
 
Posts: 4996 | Location: 0 | Registered: May 31, 2007Reply With QuoteReport This Post
Picture of Charming
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Just one of those old FHA/VA rules that has never been changed. In a home inspection, if there are screens in one or two windows there are to be screens in all windows and in good repair.


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Posts: 3510 | Location: Coastal SC | Registered: Jan 10, 2006Reply With QuoteReport This Post
Picture of real estate lady
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Actually most Realtor Offices have a list of required FHA contingencies, OR go to Federal Housing Adm. Website.

Wood against dirt is major and one of the contingencies.

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Posts: 9253 | Registered: Aug 14, 2007Reply With QuoteReport This Post
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REL wood against dirt? I would have thought dirt against glass. LOL or dirt against the metal screen, but wood? Do you mean the wood frames of the windows? but they are plastic aren't they?
That is why, I really dislike to sell FHA or VA would have to be really in bad shape to do it. Too many regulations against the seller.

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Posts: 4996 | Location: 0 | Registered: May 31, 2007Reply With QuoteReport This Post
Picture of Charming
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Sometimes dirt and mulch gets too high up against the foundation, especially down here where most new construction is on slab.

So far it has not been as much trouble as some seem to indicate. This was a 12 year old house and the only comment from the appraiser was about the screens which are stored in the attic. The home inspection went really smoothly also - there was a problem with one of the door frames in the garage, not unusual here, mulch against the foundation, 3 windows with broken seals, and a loose toilet.


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Posts: 3510 | Location: Coastal SC | Registered: Jan 10, 2006Reply With QuoteReport This Post
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Thanks for the replies everyone!

Ok so we did have a separate home inspection done, which he pointed out a few issues that MAY be FHA problems. The sellers took care of 2 of those, but didn't want to do a 3rd because their listing agent claimed it would not be an issue. (Fire rated door between house and garage)

So anyway.. I am PLEASE to report that after 2 weeks of waiting the appraisal came back today.
Price was on the money, and NO repairs needed! WOW! Our agent was 100% sure they were going to call that door, but they didn't after all. That was the concern with a time crunch.

So now, where do we go from here? Closing? We already got our homeowners insurance taken care of.
 
Posts: 28 | Registered: Jul 18, 2013Reply With QuoteReport This Post
Picture of real estate lady
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rker yes, especially here in Florida with sand..also considered dirt with FHA. Houses without gutters especially pose the problem. Those with concrete slab and wood frame..if the dirt reaches too near or on the wood...oh yeah, FHA will require pulling dirt away from foundation..all the way around the perimeter.

Try being a Realtor in 4 inch heels in suit trying to help your seller do this in the rain..trying to get to closing and getting the FHA re inspection cleared. Yikes!

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Posts: 9253 | Registered: Aug 14, 2007Reply With QuoteReport This Post
Picture of real estate lady
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Alleria - well next is your loan committment (approval). Always wait for that before putting money out for insurance. It's takes like a day or 2 to get insurance and I would recommend a wind mitigation report - cost apx. $75. You "could" save hundreds on insurance. Mind you though, roof, clips, etc. have to be in pretty good shape to get the savings.
 
Posts: 9253 | Registered: Aug 14, 2007Reply With QuoteReport This Post
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Well we just got our closing date & time!

Next Friday at 3:30pm we will be signing our lives away (LOL)
 
Posts: 28 | Registered: Jul 18, 2013Reply With QuoteReport This Post
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