It can go a number of ways, if it passes all is good. If it fails it can mean a complete replacement, a partial replacement or a repair. FHA has a 203k loan available for repairs that would include a replacement of a septic system.
Definitely talk with your buyers agent, hopefully you are using one, and discuss what may be ahead of you. At the very minimum you are probably adding another 500+ in inspection fees and nver mind any repairs or replacement. if you don't move forward with the home you are out those fees.
Hope this helps,
If this is an occupied residence and you see this, it's a safe bet that it will fail although not in all instances. For the seller, passing this on to the buyer is a big red flag - not something one would do if they want to sell.
FHA requires that it pass Title V before they will insure the mortgage. Doubtful that you can roll that into the mortgage unless its a 203k.
There are plans, drawings and approvals from the town Board Of Health that must be done prior to starting septic work. Since it seems this would be your responsibility, that is a bit of work and money to be spent before you even own the property. I think it may me wise to move on.
You should get items out of the way up front, ie, inspections, smoke certificates, Title V, so that way you will have no issues when you are ready to close that may hold up the closing.
Buying any property is a gamble, so just be prepared that nothing is set in stone. Do your due diligence so you can make an informed decision about the property in question. GOOD LUCK!
Maryann Little, VP Mitigation
Short Sale Mitigation, LLC
@rapidshortsales - twitter