FHA Appraisal this week is it realistic that I could close escrow by the 5th of July?

Asked by Patrick Williams, Sacramento, CA Tue Jun 25, 2013

Im watching youtube videos about FHA appraisals as Im writing this. I cant help but feeling a bit irritated at my agents (2 of them) I was told to fix the pool as a part of passing the inspection. But seriously as a seller and someone who doesn't do this type of thing routinely (selling a home) I cant help but feeling a bit irritated that Im not getting a bit more advice from them on how to prepare for this upcoming FHA inspection. Is it me or am I just being a worn out seller at this point. What Im told is to just keep packing, nothing about screens that are needed, no peeling paint on and on. Im posting this in Sacto because this is where Im headed when I get out of So. Cal. The entire process of selling this home has been one of the worst experiences of my recent days. If I felt elaborating would be useful I would. Can someone please tell me this, if Im getting the appraisal this week is it likely Im closing July 5th?

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Patrick Will…, Home Buyer, Sacramento, CA
Sat Jul 6, 2013
Something hilarious has come up...
It seems the lender says Im on the GSA Exclusion list, OMG...
Since I have a super common name like john smith. Well they obvious didnt check the address middle name so on and so on... Not that it didnt freak me out, but fortunatly I checked the record on the GSA site and the middle initials are all different but the crimes are scary...
Im innocent, the worst Ive been involved with was a speeding ticket while driving.
Im too scared to participate in crimes plus Im not torn from that type of fabric. My family is obviously pollyannaish.
1 vote
Keisha Mathe…, Agent, Elk Grove, CA
Tue Jun 25, 2013
Patrick, I agree wholeheartedly with Tony Grech. There is obviously a major cmmunication breakdown. Once you are aware of certain aspects of your transaction, it is the agent's job to educate you as thoroughly as possible so that you know what to expect.

If the appraisal was just scheduled, and neither the lender nor the agents have any control as to when the appraiser will receive the order, arrange the inspection, complete the report, and return the report, it is not likely that you will close before July 4 (especially with that being a holiday, no one working that day).

Alas, and this is why I like Tony's response, it's never too late to begin to communicate. Get with your agents and let them know your concerns and expectations. You are very close to the finish line and they can redeem themselves and provide you with a smooth ending.

My best to you.

Keisha Mathews, REALTOR®
CDPE®, HRC®, HAFA® Certified
SAR Masters Club Member 2012
SAR Masters Club Steering Committee
Mathews & Co. Realty Group
@ Century 21 Landmark Network
keisha.mathews@century21.com
http://www.SheSoldItForMe.com
(916) 370-1803 cell
lic#: 01439130
1 vote
Ute Ferdig, Agent, Auburn, CA
Tue Jun 25, 2013
Sorry to say this, but it is unusual for the appraisal to be that close to the expected close of escrow date. Could it be that the appraiser is just coming back to do a re-inspection? If this is indeed the first appraiser inspection, I don't see you closing by the end of next week, especially with Thursday being a holiday. If it's a re-inspection just to make sure required repairs were completed, you may have a chance, but even then it's going to be a close call.
1 vote
Marilyn Sub…, Agent, Sacramento, CA
Tue Jun 25, 2013
I understand your frustrations and concern with the upcoming appraisal. As with all appraisals, it really depends on who the appraiser is. I would suggest asking your agents to point out any possible items that could potentially be a red flag to an appraiser. There is usually a 3 day turn around from the appraisal and the actual report and then if certain conditions need to be met before funding, that could delay the closing date. I would suggest planting a "safer" date in your mind and be prepared for an "early" close.

Selling a home can be stressful but I am sorry to hear that your experience has been so unpleasant. If you are in need of a hands on Realtor in Sacramento please feel free to contact me.

Good luck, Patrick.
1 vote
Santiago Ken…, Agent, Chicago, IL
Fri Jul 19, 2013
I dont know why this FHA guidelines are so Hard ...imagine in winter with snow ... No house will pass this inspection in Chicago
0 votes
Jim Walker, Agent, Carmichael, CA
Sat Jul 6, 2013
Good idea Mr. Williams. I went to the exclusion site (link below):

In addition to all the common names like Watson, Wagner, Watts, Wiggins, Williams and Walker It also had "Foopie"

I suggest everyone check their name against this list and see if any of the 655 people in the US with the exact same name or if any of 19,587 people with a similar name are on this list. Oh. companies are on it too: like Networks By Design. Atlantic Richfield Company!! (but not ARCO?) along with some obvious ones like "Arab Revolutionary Brigades" (I kid you not!!) So don't name your company, LLC or etsy store until you check against this crazy list.

https://www.sam.gov/portal/public/SAM/?portal:componentId=8c…
0 votes
Keisha Mathe…, Agent, Elk Grove, CA
Sat Jul 6, 2013
Yes, if the file is in underwriting you likely have about two weeks until closing assuming there are no major conditions that come (and can come) from underwriting.

I know it feels a bit disheartening as you are going through this, mainly because you didn't have more info to prepare you for what was coming. But you really are having a normal transaction.

Keep your head up! You're almost there.
0 votes
Patrick Will…, Home Buyer, Sacramento, CA
Sat Jul 6, 2013
Well its the 6th now. Im still here packing my PODS container daily. The underwriters have the paperwork at this point. So once the lender is done this may close some day. Like in 2 weeks maybe? Who knows I give up...
0 votes
Jim Walker, Agent, Carmichael, CA
Tue Jun 25, 2013
Peeling paint and torn screens could be a problem for an FHA appraisal or other safety inspection.
Torn screens are bad because mosquitoes, flies and other undesirable disease bearing life forms can enter the home easily. My opinion is that torn screens should always be removed, and replaced if possible.

Peeling paint is a definite no no on a home old enough to have lead based paint. It can also be bad on a newer home, too because it can soon lead to rotten wood. I ask sellers to take care of these items before putting it on the market. But some are too busy, or too lazy, or choose to be uninformed (even after being informed!) to know that a few hundred dollars worth of sensible health, safety, and cosmetic repairs taken upfront can result in a few thousand more in net selling price, and / or a smoother transaction.

I won't excuse your agents for not being more forceful in trying to persuade you to take care of these things before the eleventh hour; but I can understand them, they probably looked at the peeling paint, torn screens and calculated that selling you on undertaking sensible repair projects in your last months of ownership would likely be futile, since you let the property decline in the previous years of ownership. They may have even calculated that making the attempt to persuade you to do what you did not want to do would lose them the listing to some agent not so demanding. For all I know, if you interviewed more than just these agents, maybe that is what happened?

Ah, but don't worry. The FHA appraiser will give you a punch list of exactly what needs to be done to get it closed. When you get that list, grumble to yourself, or here on this thread, and fix what they tell you to fix. Nothing in the preceding rant is meant to be advice contrary to the advice of your agent. This is a public forum; my opinions are offered for amusement and entertainment only, and are not an act or offer of agency for your sale.

Finally regarding July 5th. maybe, maybe not. I would not bet my first born on it.
Do a search engine request for "Murphy's Law"
0 votes
Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Tue Jun 25, 2013
Hi Patrick
Sounds like a communication breakdown there. FHA appraisers are going to be concerned with issues regarding structure, safety, and soundness of the home. Below is a really good article to read if you want examples of things commonly cited.

http://www.investopedia.com/articles/mortgages-real-estate/1…

With the appraisal JUST taking place this week, there is a good chance the lender won't even receive the report back until early next week. With losing a business day to the 4th of July I would find it very doubtful you would be closing by the 5th. Usually the appraisal is ordered much more earlier ahead of time. Now if this is just a followup inspection to confirm that required repairs have been made, then I would peg your chances of closing as more likley.

Sorry to hear you've had a bad experience so far, but you should really be discussing these concerns with your realtor. A good agent has to wear many hats throughout the course of the transaction: negotiator, advisor, therapist, etc. It doesn't sound like you are getting what you need out of that relationship, but that's no reason you can't or shouldn't reach out to express your frustrations and open back up the lines of communication. Even though your realtor deals with these situations every day, they have to be sympathetic to the fact that you don't, and they need to make the effort to raise your comfort level.

Best of luck !
0 votes
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