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croust · Joined: 30 Dec 2007 Posts: 3 2.98 Dollars($)

I am a home inspectpor. Local mortgage underwriters want a summary list of deficiencies that must be repaired before closing. Some rely on appraisers to provide the list. With conventional mortgages, it is unclear which deficiences to put in this list. Different underwiters and appraisers seem to have different standards and pick and choose deficiencies. Is there any "standard" to assist everyone with development of the list of required repairs?

ckalvesmaki · Posted: Sun Dec 30, 2007 8:09 pm Post subject:

There isn't any easy answer to this question......as an example an FHA appraisal is more detailed than a standard appraisal.....so some items may not be noticed in a standard appraisal.....The only time I seem to ever have a lender ask for a copy of the inspection is if there is something noted in the appraisal report.

croust · Joined: 30 Dec 2007 Posts: 3 2.98 Dollars($)

Thanks for the reply, Cedric. I am aware of the FHA guidelines. Is there any standard or training for appraisers or underwriters on what should be required to be repaired before the loan is approved on conventional mortgages?

I have asked local appraisers and underwriters and get into this run-around that it is whatever is required by the (_____) fill-in the blank with "appraiser", "underwiter", "home inspector". Several realtors have said that "health and safety" items are required by underwriters but I find that is clearly not what has been required.

Home inspectors are trained that they do not have authority to require repairs, they only recommend repairs to their clients, usually the home buyer.

The frustrating thing is that some underwiters and/or appraisers will dismiss obvious safety or building deterioration items from home inspector's reports while requiring minor maintenance items on non-FHA loans. In a perfect world, there would be some predictibility about which items would be required by the underwriters.
__________________________
Chris Roust, AIA
Roust Property Inspections, LLC

Caron

Hi Croust,

Welcome to our forums.

I can understand what you're trying to say. The thing is, being a home inspector you can suggest repairs and nor require them to be done – that's ok but since the appraisers/lenders have asked for a report, I think you should prepare one with the items you feel should be repaired and then allow them topic and choose from the list. In general, you need to provide items related to safety issues of the home.

Your report may include items such as electrical, plumbing, heating, air conditioning systems, and other equipments. Besides, there should be something written about the structure and construction of the home as well.

There are some standard practices followed by the American Society of Home Inspectors at http://www.ashi.org/documents/pdf/standards.pdf . I think it will help you know what to include and what to exclude in the report. Just have a look and in case you need more clarifications, just let me know or have a take with any of the community lenders/appraiser here. They may be able to help you in this regard.

You will also get a sample home inspection report at http://www.heimer.com/inspections/sample_report.html with various items talked about for the repairs.

Good luck and have a great New Year Smile

croust · Joined: 30 Dec 2007 Posts: 3 2.98 Dollars($)

Caron,

Thanks for the welcome. I agree that the ASHI standards are some of the best as I am a member of that society. I am careful to follow those standards but they are not detailed and most of what I know is from the facts that I am a licensed architect, have taken a home inspection training course, obtain yearly continuing education and was a building official for 17 years. You can see my sample report at my web page at "http://www.croust.com"

As you can see from the sample, there is a category in my reports called "Recommended for Immediate Attention". Some underwriters seem to use that as the "required" list while others will attempt to use the entire report including maintenance and upgrade suggestions and still others will ignore all but items on the FHA list, even though there are virtually no FHA loans in my area.

What it comes down to is that there are apparently no standards for appraisers, underwriters or even home inspectors (the ASHI standards are more to do with format and inclusion than specific deficiencies that should be listed). The reason I am frustrated is that my clients, the buyers, sometimes get caught in a situation where they loose their dream home due to my listing deficient items that they cannot afford to repair immediately, the seller is not willing to repair and the underwriter is requiring to be done before closing.

Then I am put in the position of wasting time talking to realtors, appraisers and even loan officers discussing what repairs I am really "requiring". It is not up to me to make that call. The list should be made by the underwriter from the recommendations provided by the home inspector and/or appraiser. I just wish there was some consistency to their selection.

[Link deactivated as per forum rules. Thanks.]
__________________________
Chris Roust, AIA
Roust Property Inspections, LLC

Caron · Posted: Mon Dec 31, 2007 6:30 am Post subject: RE: home inspection problems

OK I got you now Chris. Yes indeed, when you don't do anything bad and still get criticized bvy your clients, that's not good. The thing is, I'm not a hard core professional in your area of specialization but from my understanding I can say, first of all, when you meet the buyer, request him so that you can have a talk with the lender and then the underwriter as well. You'll come to know what type of items they accept and then accordingly while you list them, you can delete the ones not required. However, if some item is indeed in a bad condition, then you will ahve to suggest it's repair or else the buyer or seller would think you're not dpoing your work properly. I think if you talk to some of our community lenders, or pm them they might be able to tell you.

Let's see what they'll say. I wish I could help you entirely Sad

Hope you'd keep away all your frustrations and enjoy the New Year Eve!

ckalvesmaki · Posted: Mon Dec 31, 2007 5:13 pm Post subject:

The reality of it is......that a home inspection is not required......unless in most cases the appraiser comments on something that needs to be repaired in the process of the appraisal.....I can only think of one time in the last cpl of years where a lender actually asked for a copy of the inspection report.........sooooo having said that......you should not concern yourself( in my mind) with trying to keep anyone happy but the consumer.......call it as you see it and move on......just my opinion.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

They want a list of any items that would be considered differed maintence. Basically if it needs to be fixed, they want to know about it. If its broken, then it would need to be fixed. There really is no list. You would need to list the items that this may pertain to.

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