Home Buying in Medina>Question Details

Jab67, Home Buyer in Ohio

After an failed FHA apraisal, If the list repairs are made, can there be a new list after a 2nd appraisal?

Asked by Jab67, Ohio Tue Aug 11, 2009

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Sounds like you fall in the first category.....the FHA appraisal came back with a list of "conditions" to the loan. If you choose to make those repairs, the same appraiser should go back, make sure they are addressed and sign off to move forward on the loan. Definitely discuss this with your loan officer and your Realtor. Be a fully informed buyer and make your decisions accordingly. The loan officer and the underwriters for the loan should be able to spell out exactly what the expectations are to move forward on the loan.
0 votes Thank Flag Link Tue Aug 11, 2009
It is my understanding that on a short sale, you cannot set up escrow for the repairs needed to bring the property into FHA insurable condition. Only on an already foreclosed home (REO or HUD) can you establish an escrow account.

With that in mind, are you planning on doing those repairs BEFORE you close on the home? That is quite risky. There is no guarantee that you get a bank approval for the short sale, and even if you do, the bank can decide to foreclose rather than going through with the short sale. You may want to discuss this in more detail with your loan officer and real estate agent.
0 votes Thank Flag Link Tue Aug 18, 2009
You are quite welcome & Good Luck!
0 votes Thank Flag Link Tue Aug 11, 2009
Thank you Linda... Trust me, I am being specific with all involved.
0 votes Thank Flag Link Tue Aug 11, 2009
I've not had an appraiser/inspector add to the conditions once the appraisal and reinspection process is completed. Possibly require more effort on the repairs if they aren't what was indicated.

The underwriters may ask for further conditions if the loan officer and local underwriting didn't pick up on everything on the appraisal report, but that is not normally the case.

Again, speak with your Realtor if you are working with one and your Loan Officer. They know the specifics of your loan package and property in question and can be much more specific in answering your concerns.
0 votes Thank Flag Link Tue Aug 11, 2009
Okay, so in general, he cannot "reinspect" the home? Yes, I am talking to realtor and lender bothe extensivly. Bad part is, bank gave a closing deadline.
0 votes Thank Flag Link Tue Aug 11, 2009
So, the inspecter returns to inspect repairs... Can he add to his original repair list at this time?
0 votes Thank Flag Link Tue Aug 11, 2009
There was a list of items, most trivial in my book. chipped paint, hole is a screen or two, dirty bathtub (Yes, dirty from house being emptry) Inspectory did not like the splatter/sponge paint on a bedroom door (not chipped or peeling though) and there is a pool in the back yard that he was unsure of condition (I plan to remove the pool) Biggest issue the carpet was removed.
Unfortunatly for me it is a short sale and the bank will not make the repairs. i would do the repairs myself, but if the inspector comes back and says there are more problems, then I am stuck.
0 votes Thank Flag Link Tue Aug 11, 2009
Not sure from your question as to why there was a second appraisal unless you are the "second buyer" on a property that had a negotiated FHA offer that went through the appraisal process then for whatever reason did not close. If that is the case and you are planning on buying FHA, each appraisal will have different conditions based on the individual appraisers notations on the report and the individual lender/underwriters interpretation.

Typically if there is an FHA appraisal, the list of repairs are made, there is a reinspection by the same appraiser and then everything moves forward. If there is some reason you are the initial buyer and there is a second appraisal ordered, the same process would apply, but I would hope your agent and loan officer would question and explain to you fully why that is the case.

Hope this helps.
0 votes Thank Flag Link Tue Aug 11, 2009
Usually,prob due to mold or too many repairs?ur lender should offer you 203k and get fha approved inspection,estimates and proceed.what do you mean Jab,when you say new list

TJ
0 votes Thank Flag Link Tue Aug 11, 2009
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