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At My Wits E…, Home Buyer in Pennsylvania Furnace,...

I am buying a foreclosure that is out in the country and has well water. now as we are about to close the mortgage company said the appraisal guy is

Asked by At My Wits End, Pennsylvania Furnace, PA Tue May 25, 2010

saying we have to hook into the puble water. we are planniing to once we are closed but he is saying we cant unless we hook into. the public water. so do i have to do that before we close? also why would I put all that money into the water when the house is not in my name?

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Now it sounds like he is milking re-inspection fees. Again, it is not the appraiser's job to determine what needs to be corrected or inspected, just to report on the appraisal what is readily observed at time of inspection and provide photos of items/conditions. It is the lender's duty to determine what and if corrections and/or additional inspections need to be completed to satisfy their underwriting and FHA guidelines for/when determining the collateral risk. If the appraiser and/or appraisal is that incomplete or incompetent, you should provide a copy along with a detailed complaint to the State Appraisal Board in your state.
0 votes Thank Flag Link Wed May 26, 2010
so we finally fixed everything on the appraisers list and were suppose to close this saturday and now the appraiser came back with.. he wants a roofing specialist to look at the roof for leaks ( there are no leaks) and he also wants a mold specialist to look in the basement and sent samples off to a lab. there is no mold in the basement. we cleaned it and painted it. he lied on the appraiser form and said the electric was off and then said there was mold in the basement when all it was is where the last people painted the walls white over a dark blue and it was paint showing through. can he keep comming back with new things when we already fixed what was on his list the first time? he doesnt seem honest and he seems to have a chip on his shoulder. Please help!
0 votes Thank Flag Link Wed May 26, 2010
It sounds to me someone is trying to get you to do repairs to meet FHA requirements at your expense and putting the Appraiser as the reason. Either the bank who owns the foreclosed property, their asset manager or asset management company selling the foreclosed property, the listing agent of the property, your agent, or your lender. Then again the appraiser may not be fully competent with FHA appraisal guidelines and requirements or being pressured by the lender or AMC (appraisal management company).

It is not the appraiser's duty to determine if hook up to public water is required - only to report in the appraisal the availability of connection to public and/or community water/sewer systems.
The lender is responsible for the determination of the FEASIBILITY for requiring connection.
Page D4 - Appendix D Valuation Protocol 4150.2 - http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4150.…

Also - HUD/FHA Single Family Reference Guide - Individual Water Systems - General requirements B & C
http://www.hud.gov/offices/hsg/sfh/ref/sfh1-21b.cfm
0 votes Thank Flag Link Wed May 26, 2010
i am wrking through a mortgage company and the bank who owns the house has an agent and i have a realtor. The problem came in after the appraiser didnt do the appraisal on time and we missed our first closing. he had a list of conditions like chipped paint etc... then we fixed all of that and now he came back with there is public water so we HAVE to tap into it now. why didnt he say something before? they made us pay for a well test and it passed and now he's comming back we need to tap into the public water to get a phfa loan. I didnt think it was to smart to pay for the water before I own the house. we already spent a ton of money on fixing the conditions he came up with before.now we were suppose to close on thursday and just found out by the mortgage company he hasnt gone back out to reinspection because" the appraiser didnt think there was any reason to go back out since we didnt connect to the public water. he seems to have a chip on his shoulder. is there anything we can do? i dont want to lose the house.
0 votes Thank Flag Link Tue May 25, 2010
Why indeed, At My Wits End. What happens if you pay to hook into the public
water and then can't close? You've paid that for someone else.

What does your lender say? What does the community say? If your lender
says you must, ask if you can put the money in escrow to have it done within
30 days of closing. Pay for what you own.

Am I right in guessing you aren't working with a buyers' agent?

Good Luck,

Marita
0 votes Thank Flag Link Tue May 25, 2010
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