What We Have Here Is A Failure To Communicate!

by Michael on February 13, 2012

Photo’s From A Recent Appraisal Inspection

Believe it or not, there are some properties that just aren’t capable of going traditional financing. I was recently sent to appraise a property that I knew was going to be a challenge as soon as I pulled-up. This appraisal was for an FHA loan, and from the street (50 feet away) I could see chipping and peeling paint-not a good sign!

After a pleasant greeting, the gentleman starting to show me around inside. It didn’t take long for me to realize that this property didn’t have a hope and a prayer of going regular FHA financing, but I learned long ago that doesn’t mean I cut the appraisal short. It’s not my call whether or not an appraisal should be completed, and there are times when a creative mortgage officer will be able to find some type of financing. But, I soon realized after inspecting few more rooms that this wasn’t probably going to happen.

Good Communication Can Save Major Headaches & Money

I’m not sure what conversation the loan officer had with his client, but whenever you’re ordering an appraisal, especially for an older home (built prior to 1978), there are some questions I would get answered first:

  • Is there any peeling paint on the exterior or interior?
  • Do yo have any unfinished projects?
  • Do you have any potential safety hazards (exposed wiring, falling ceiling panels, plumbing issues )
  • If you just finished a project, are all bare surfaces painted?
  • If some windows were replaced, should have any of the other windows been replaced?
  • If the roof was just replaced, was there any damage that hasn’t been repaired yet?

These are just some of the questions I would ask when talking to a potential client about a getting a mortgage. In this particular example the owners just replaced the roof, however, there was a lot of damage that hadn’t been fixed due to the neglect of not taking care of it sooner. A little detective work would of saved everyone time and money!

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