Thursday, January 6, 2011

Possible Lead Based Paint and FHA Appraisals

I am working on 3 files that all have FHA financing secured and each of them has issues with the appraisals.  One of the homes that is being financed has peeling paint on the trim, the fascia, and the underside of the roof (eaves).  This is an issue because the home was build in 1974 and any home built prior to 1978 is supposedly subject to lead based paint that was used back then.  The appraiser and FHA require that the peeling paint be stripped off and then re-painted; this without truly knowing if there is even lead based paint.  You wonder why they don't perform a lead based paint test to determine if it is even something that needs to be addressed.  On this particular file it has caused a delay as the buyer went to the home and attempted to help himself...that did not go very far.  He was instructed to view the pictures in the appraisal and address the areas in question...the client happened to only repair/re-paint the areas specifically in the photos of the appraisal and not all the areas with peeling paint.  The appraiser went back to the property and of course called us to report that the repair work was incomplete; each trip to the property costs money of course.  I had my loan processor contact the appraiser to find out exactly what he wanted done (loan officers can't contact appraisers anymore with new HVCC rules).  He told me the areas that specifically needed to be addressed; I then delivered that info again to the buyer.  At this point, the listing agent finally stepped in and got a bid for the work to be done by a professional.  The buyer was still slightly confused as to what exactly had to be done so I had to visit the property, talk with the painting crew, etc...Just an FYI that this type of thing could hold up a transaction.  Realtors, when you are looking at the properties for your clients, just keep the peeling paint issue in the back of your mind so it can be addressed up front with the seller.  In this particular case, it would not have mattered that it was identified or not up front because the home was a lender owned property and was being offered "As-Is".  I tell you this information and the whole story for one reason...I want you to be Successful and we can learn a great deal from other's stories! 

No comments:

Post a Comment