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Jay Markanich
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« on: October 01, 2008, 04:51:40 AM » |
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In June I did an inspection for a client obtaining an FHA loan for their house purchase. Nothing unusual there, I have done probably 800 or 1,000 such inspections. I am NOT an "FHA Inspector" and never will be, but that is a different thing. However...
Two days ago I got a call from the realtor telling me that FHA has taken my report and picked five things and was wondering why I am not requiring that they be corrected in that house. Some were small - cracked window, tilting AC unit. Others needed something - foundation crack which was cracking the exterior brick work, very old water heater and minimal electrical service of 125amps. None of those things is unusual on a 41 year old house, vacant for nearly a year. She said FHA is asking for a letter that explains why I am not "requiring" repairs.
I wrote a letter stating that my inspection observes and reports the condition of the house at the time of the inspection. Also, that I do not require anything of the sellers, or in this case the bank, and my commentary is intended to inform the purchaser of existing condition only. Sometimes I do have recommendations - like I mentioned in a previous post, things like insuring proper grading, covering gutters, etc., but they are recommendations only.
Yesterday I got a call from the loan officer requesting another letter. Get this - FHA says they will not extend the loan without a letter from me stating that nothing on the house needs repair. I laughed at him! He had previously spoken to the realtor to have her call me to convince me that such a letter was needed. She is a veteran and told him that there was no way I would write such a letter. (Doing so is certainly NOT my purview...) Then he says, "If you don't write the letter by tomorrow these poor people will be without a house." Like that's going to work... I said, "Then they will be without a house. Get a conventional loan! I can't write that letter and you know it. Why are you calling me with 24 hours left?" Silence!
Two minutes later the realtor calls asking the same thing. I laughed again. She said she had promised the loan officer she would give it a shot. Then two minutes later the buyer calls and asks the same thing. I laughed AGAIN and asked him if the house did need some repairs. His answer, "Sure! Lots of 'em! And I intend to make them." "Then why," I asked back, "would you expect me to write such a letter?" Silence!
There seem to be new FHA rules, which apparently are changing daily. Right now, the realtor says, they will not extend loans unless a house has an FHA appraiser and a home inspector's report. I will bet they will start requiring inspectors to have FHA certs to do an inspection on such a loan. Well, they won't get me to go along. I am going to open myself up to the FHA? Maybe when I come back as a worm, but not in this life. AFTER extending government-backed millions of loans to people who could not afford one in the first place, because of Clinton's Community Reinvestment plan, (read "government-backed" as you and me!!!) and thus creating this current mess, suddenly, suddenly (!) they are getting tough? BE STILL my heart!
Just a big head's up guys. Remember the "City Inspector" post? Is this where we are heading - socialism in the inspection industry? Just as "green" means mo' money and mo' gubment control, so will these apparently-coming inspection regulations.
Remember, remember Reagan's famous speech in which he said something close to, "Just like laws of physics, as government expands, liberty contracts." Canada here I come! Woohoo DeVries!! It's meeeee!
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