Ridiculous FHA rules II

[rile]

I've read all the responses to my previous post and thought I'd make my original post a little clearer. First, I might have misled by using the term FHA. In fact, it's what is called a Rural Development mortgage from the USDA. The rules for acceptance are written out in a handbook that can be found online. One of the rules states that there can be no "chipped, peeling or flaking paint" on the outside of any buildings and fences that were built before 1978. It has nothing to do with what is in the contract. The mortgage is dependant on the approval of the appraiser. He now rejected it for a fourth time. Why he did, we don't know. We have nothing else we can do to the paint. He doesn't return calls or emails. I have complained to the state office for Rural Development and they are no help. The buyers have decided to can the RD deal and get a conventional mortgage. It is so screwed up because the buyers do not even want the paint problem addressed. They want to paint the house themselves. I have contacted my rep. and senator about the thing and am waiting to see their reaction.

[willshak]

on 8/12/2009 4:54 PM (ET) rile wrote the following:

USDA? Is this a farm?

[salty]

Whatever you do, don't let Oscar be your arbitration mediator!

[Colbyt]

Most likely the Farmer' s Home Admin program and no it does not need to be a farm but it needs to be considered a rural area.

The inspectors are demi-gods and can be more difficult than any other home inspection process.

Colbyt

[ransley]

Hardware stores sell test kits for lead paint for about 8$, if there is no lead inquire about a wayver on the rule, or scrape the loose crap off. Whats the big deal.

[trader4]

I would say it could still have a lot to do with what was in your contract. For example, if the contract said that if repairs following inspections are more than $2000, you can cancel the deal, then you have an out. You get a painter to give an estimate of greater than $2000 to do an ultra job that satisfies the unreasonable inspector.

On the other hand, if the contract says you gotta fix everything no matter what, which is what someone appeared to be saying can happen with an FHA, then you'd have a potentially big problem.

First you said it was an FHA inspector, now you say it's the appraiser? Are you sure you are getting ALL the information? Regardless of who is doing the inspections, the inspectors client is the mortgage company and the mortgage company's client is the buyer. Any reports and info would go to them, but they may not be passing everything on to you. The inspector has no direct obligation to you. No inspector/appraiser can just say no with no explanation to the parties who hired him.

Usually the contract will specify that inspection reports, deficiencies, etc must be completed within X days and that those reports spelling out any deficiencies must be delivered to you within Y days thereafter. IF they aren't doing that, then you should have an out, provided you had a contract that did a reasonable job of protecting your interests.

And that sounds like the easiest solution to the problem.

Given that these guys say they don't have time to read $1 trillion spending bills, how much time you think their gonna spend on you?

[rile]

The appraiser and inspector are one and the same guy. You'd be surprised how well our senator gets back to his constituents....probably better than most.

[rile]

You haven't read what I've posted. We have power washed, scraped and repainted everywhere. There is nothing left to do on the paint.

[rile]

It is not a farm. It is 3+ acres out in the country. In fact, according to the rules, houses in some rather large towns are eligible for the program. Most of the area where I live outside Columbus, Ohio qualifies for it.

[ransley]

Then why wont he meet with you on site to go over his complaint. That would be easiest on you and him.

[Oscar]

Oh boy, all that flaming over nothing! Thanks a lot!!!!! LOL

[rile]

e quoted text -

I do not know why he requested nobody be there at his latest inspection. We haven't received the report yet other than it was rejected again. I'd like to report the guy to someone but have no idea where I should do that.

[Ashton Crusher]

Contact a lawyer. Sounds like he's interfering in your contract for no valid reason. The request that no one be there sounds ridiculous to me. One might think he only shows up long enough to verify no one is there to see him and then he turns around and goes shopping. Many states have licensing requirements for home inspectors.

I had a "termite" inspector who was a bit like that on a home I was selling. Some people just seem to like being ass holes.

[salty]

Does he have credentials? A license? Get the information from those, which he has an obligation to share with you, and then you will know whom to contact.