Ridiculous FHA rules

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And now you're gonna tell me, you've done them all FHA, and walked away.
You're just being plain silly.
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The "inspector" is actually a FHA appraiser.
It's obvious, the OP _agreed_ (signed a contract) to sell FHA, because that's the only way you can sell FHA.
The OP has repeatedly attempted to satisfy FHA, they have never said how many $$$ they agreed to spend to sell FHA. But, they're not painting out of the kindness of their heart, they _had_ to agree to this (contract). They must fulfill their contractual obligation, whether it be $100 or $5000.
Now read the addendum, I'm not copying/pasting for your convenience. http://realestate.utah.gov/REForms/New_FHA-VA_addendum.pdf
BTW, I've addressed it more than once. There's been a couple other people address it also, you must not be reading through the thread, or you have them blocked.
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wrote:> Oh, so now you claim to peak for everyone? I think that labels you

I certainly don't know what your problem is, but I'll bet it's hard to spell.
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Here in NJ you are considered a fool to buy/sell real estate without an attorney. I don't know where you are at but here's how it works in NJ. 1.Seller places home for sale at a price. 2. Buyer likes house , makes offer. 3. If offer is reasonable, contracts are drawn up with estimated closing date, guarantee of C.O. if necessary , buyer agrees to secure funding, buyer can inspect home and reject for defects and so forth. 4.Attorneys review contract make changes if necessary. 5. Buyer pays for inspections . 6. List of deficiencies is presented to seller. 7. Seller agrees to fix some or allof them. 8. Buyer agrees or walks away. 9. On closing day money changes hands and papers are signed.. Of course the lender can reject a home with major defects and therefore buyer cant buy and deal is dead. Just because you got played doesnt mean everyone is like you. I've sold and bought several houses. I've rejected buyers for wanting too much and walked away as a buyer when seller wouldn't fix things. . My current home is 1935 vintage. Sure there may be some lead paint under layers of latex. When I sell it I of course will repaint as necessary for appearance but any buyer who thinks I will pay for total stripping etc can go elsewhere.. I dont care who his mortgage lender is.

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Here in NJ you are considered a fool to buy/sell real estate without an attorney. I don't know where you are at but here's how it works in NJ. 1.Seller places home for sale at a price. 2. Buyer likes house , makes offer. 3. If offer is reasonable, contracts are drawn up with estimated closing date, guarantee of C.O. if necessary , buyer agrees to secure funding, buyer can inspect home and reject for defects and so forth. 4.Attorneys review contract make changes if necessary. 5. Buyer pays for inspections . 6. List of deficiencies is presented to seller. 7. Seller agrees to fix some or allof them. 8. Buyer agrees or walks away. 9. On closing day money changes hands and papers are signed.. Of course the lender can reject a home with major defects and therefore buyer cant buy and deal is dead. Just because you got played doesnt mean everyone is like you. I've sold and bought several houses. I've rejected buyers for wanting too much and walked away as a buyer when seller wouldn't fix things. . My current home is 1935 vintage. Sure there may be some lead paint under layers of latex. When I sell it I of course will repaint as necessary for appearance but any buyer who thinks I will pay for total stripping etc can go elsewhere.. I dont care who his mortgage lender is.
================ Can you turn off the HTML?======== Reply below========== Jim,
You're talking a conventional loan, it has nothing to do with a FHA/VA loan. You have no knowledge of a FHA loan, the more you try to explain away, the more you show, you know nothing about FHA.
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Lead [aint in houses is mitigated by painting over it. I have never heard of anybody removing it, except when remodeling interior spaces.
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Oscar wrote:

Can't address the FHA part, but here in MI, I asked a lawyer buddy about hiring a real estate lawyer when I bought this place. He said not to bother- in MI they use boilerplate contracts when you buy through a realtor and title company, and They Will Not Change Them. Legal term is 'take it or leave it'. Private-party sales, of course, would be different.
My deal was as vanilla as it gets, so I didn't bother to explore other alternatives, and it all sailed through in days.
-- aem sends...
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Yep. Use of a lawyer in residential real estate transactions is definitely a regional thing. Common in New England and a few other places.
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wrote:

Maybe it is. When I was buying and selling a couple of houses about 5 years ago in NC I was told I had to have a lawyer to complete the deal. I even had 'cash' money and still could not buy a house without the lawyer.
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Here's a link to an example of an FHA purchase contract from the web:
http://www.kr-ba.com/FHA.pdf
Look at line 81 where section 8 begins. There is a check box for (a) which requires the seller to deliver certain parts of the home in normal working condition. Then look at line 116, where there is a check box for the alternative (b), As Is - Property shall be conveyed "As Is", with no warranty whatsoever as to property condition
So, clearly this example of an FHA contract has provisions for selecting (b) and selling as is. If as is were not an option, why is it right there in the boilerplate?
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Here's a link to an example of an FHA purchase contract from the web:
http://www.kr-ba.com/FHA.pdf
Look at line 81 where section 8 begins. There is a check box for (a) which requires the seller to deliver certain parts of the home in normal working condition. Then look at line 116, where there is a check box for the alternative (b), As Is - Property shall be conveyed "As Is", with no warranty whatsoever as to property condition
So, clearly this example of an FHA contract has provisions for selecting (b) and selling as is. If as is were not an option, why is it right there in the boilerplate?
==============reply below======== Nice catch. It used to be, FHA would not sell as is. This is good information, to keep in the memory banks.
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Even a sales contract with FHA financing almost certainly has a limit to the dollar amount of repairs that a seller is obligated to make. And certainly every contract SHOULD have such a clause. The seller should check his contract, read it and see what it says. If he gets an expensive quote to remedy the paint situation that's over the limit, he has an out.
It's simply not the case that if you have an FHA buyer the seller is on the hook to fix anything and everything just because some FHA inspector requires.
Also, from a practical standpoint, if he offers to return the sellers deposit in full and call it quits, there is a good chance the seller will walk. Their alternative, to suit for specific performance, while their deposit money is sitting in escrow, is not a particularly good option.
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rile wrote:

I'd assume "the guy" has a supervisor and start appealing up the line. Years ago, I had a problem with a county building inspector and this is what I did and got it resolved.
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wrote:

Repainting over lead paint does not stop it from being a problem. All lawyers of paint that may contain the lead must be removed to assure there is no problem.
I don't know what the law says must be done but I would bet the FHA does have a recommended procedure. Have you asked them what needs to be done? They are the ones you need to make happy. You may need to go over the inspector's head.

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Very unlikely that the property "has no lead paint." It may have no *exposed* lead paint, but if it was built before 1978, it's very unlikely that it has none at all.

Sounds to me as though the buyer may have changed his mind about buying the house, and is using the inspection as an excuse to back out of the transaction. Check the purchase agreement, preferably with the help of an attorney experienced in real estate law. Such contracts typically (in my state, at least) allow the buyer to unilaterally cancel the agreement if the inspection discloses a "major defect". In my opinion, lead paint that is not peeling, checking, or flaking is not a "major defect" -- but I am not a lawyer, which is why I suggested you should consult one. If you've hired a real estate agent to sell the home, the agency almost certainly has a lawyer on retainer, if not on staff, who would I'm sure be happy to explain to the buyer (or the buyer's lawyer) the difference between "major" and "minor" defects.
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On Aug 11, 4:39pm, snipped-for-privacy@milmac.com (Doug Miller) wrote:

the buyers have NOT changed their minds. In fact, they are as infuriated as we are. They are now trying to get a conventional mortgage even though it will cost more.
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Then what is the problem? You want to proceed with the sale, the buyers want to proceed with the sale -- why can't the sale proceed? Do the buyers not know they can waive an inspection contingency?

Why?
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On Wed, 12 Aug 2009 20:34:33 GMT, snipped-for-privacy@milmac.com (Doug Miller) wrote:

This isn't the standard buyer's inspection -- the FHA mortgage can't close without the approved inspection (similar to a conventional mortgage not being able to close if the appraisal isn't high enough). The buyers can't waive that (well, they can, but they then need to find a non-FHA mortgage, which is what it sounds like they're doing)

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On Aug 12, 4:34pm, snipped-for-privacy@milmac.com (Doug Miller) wrote:

The buyers cannot waive the inspection contingency. It is a requirement for the mortgage they are seeking.
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Your problem varies, depending on the state you are in. Some license lead inspectors and others don't. Until recently, one required licensed inspectors but didn't have an inspection licensing process in place and couldn't issue licenses but did accept licenses from other states (go figure).
In general, licensing has a couple of levels: one being a sampling technician and the other being a risk assessor. There are also clearance techs but that's an unlikely cred for someone doing an inspection.
So here are your issues: First, the house was scraped and painted in the 1980s. Fine. But it's unlikely that you used interim controls and there is probably lead in the soil. If he identified that on his first visit and doesn't see any changes when he returns, he'll fail you before he gets out of the car. That's issue #1. BTW, visible paint chips on the ground is an immediate failure.
Any chipping paint on "mouthable surfaces" is an immediate failure, but "chipping" has a wide definition. It can also be any wear on friction surfaces such as hallways or stairs. Alligatoring is also a no-no. Therefore, windows are your biggest problem.
Your best bet might be to get your own risk assessment. That'll run you $500 to $1000, depending on where you live. Then you have a baseline. It also means that if there is lead poisoning later, you have some baseline documentation of the risk.
As for comments about all paint must be removed, etc. That is wrong. In almost all situation, interim controls are fine and abatement would be very rare. Groups I work with rehab 300 to 400 homes a year using Federal money and there hasn't been a single abatement job that I know of.
As for what he's looking at, I believe (but am not entirely sure) that you have a legal right to a risk assessment and/or lead paint report done on your premise.
BTW, once you have knowledge of LBP (whether is it there or not), you are legally required to report that information to all tenants and all buyers. So if you know you removed lead in the 1980s, you're required to tell them that.
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