Down with FHA... I have had about all I can stand!!!

By
Real Estate Agent with Home Real Estate

Yesterday I had another incompetent FHA appraiser screw up one of my deals because of loose carpet, and a missing rod in a stairway banister. Not sure if the deal is going to close on time or not or at all for that matter. The government has once again prove that whatever they touch just gets worse. I am not the only agent having these issues, I have heard some doosies about FHA appraisers screwing things up for ridiculous and inconsequential reasons.

When will we realize that the government is only capable of doing a few things well. The rest of the jobs should be left to competent private sector people. The governments job is to protect our country and our people by upholding the rule of law. Their job is not to underwrite loans, when will we say enough is enough. Ok, so the mortgage companies screwed a lot of stuff up, now lets regulate them and make sure they do things the correct way.

I have had enough of the FHA and wonder if you are tired of it also? I would be interested in hearing your thoughts.

Steven Wright

My Website (I just redid my whole website on Short Sales, let me know if you like it)

 

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Rainer
125,171
Sandra White
John L Scott Real Estate - Port Townsend, WA
Experienced Residential Resale Broker

Steve, coming from an area in So. CA I had not done an FHA loan since can't remember when since the inventory was always over the qualifying limit.   Now I am in a transaction on a manufactured home  using one so am concerned about it going through.  To make things worse, I have never done a transaction with this lender, and the listing agent is in the hospital after a motorcycle accident and her partner has stepped in.  Fortunately, she has had experience with FHA and is so far very helpeful.  I wish us all a lot of luck in the months to come!

Jun 16, 2009 02:03 AM #1
Ambassador
2,597,019
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

It's probably more a situation where the appraiser doing the job for an FHA mortgage is overdoing his responsibility and is so familiar with VA requirements that he just gets carried away. If the items are simple enough somebody should fix them, take photos and send them to the bank with an explanation. I know I've scraped old paint and applied a fresh coat to a few windows to get the contract closed.

Jun 16, 2009 02:03 AM #2
Rainmaker
163,071
Lorinda Ward
Keffer Realty - Norfolk, VA
Serving, Hampton Roads Virginia. Norfolk, Chesapeake, Va Beach

I have the same problem here with a loose carpet, that is FHA for you.  Of course my closing have been pushed to another date.  Hopefully it will close this time.

Have a great and successful day!

Jun 16, 2009 02:04 AM #3
Rainmaker
594,298
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate

It took me almost 14 yrs but I finally closed on one of my listings last Friday and it was the first FHA loan. True they are very particular...the appraiser told me that the electric and water had to be on and they are very particular regarding repairs and condition...I guess they are worried about jeopardizing their licenses.

Jun 16, 2009 02:07 AM #4
Rainmaker
379,098
Chanda Barrick
Keller Williams Indy Metro Northeast - Indianapolis, IN
in referral

Uh oh.  Hearing this makes me nervous.  My client is doing an FHA loan and she's already had some headaches over minor things.  I do know the carpet needs to be re-stretched in the home.  Oh boy, I sure hope this doesn't put the breaks on things....Now I'm worried...

Chanda panda

Jun 16, 2009 02:16 AM #5
Rainmaker
111,108
Steven Wright
Home Real Estate - Aurora, CO
CRS - Home Real Estate - 720-989-5283

I wish you all the best of luck with your FHA loans, Lord knows we need it in spades.

Jun 16, 2009 02:43 AM #6
Rainmaker
791,695
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

FHA is NOT that bad, it is a great way to finance a home.  The appraisal form is the same as a conventional loan, the problem may lie in the new Appraisal Management system that Uncle sam put into place this spring where we cant hand pick the quality appraisers.  or it could just be that some one screwed up.  Dont let one deal be a problem, FHA was probably the Best way and quite possibly the only way for the buyer to get into the home.  I have been doing FHA loans for about 20 years and there are less and less of these repair issues every year.

Jun 16, 2009 02:57 AM #7
Rainer
437,789
Terry Chenier
Homelife Glenayre Realty - Mission, BC

Steven,

I don't get it. Why would they screw up a deal over a patent defect that's easily repaired. Doesn't make sense.

Jun 17, 2009 05:21 AM #8
Rainmaker
173,650
Christine McInerney
Great Life RE - Knoxville, TN
The McInerney Team, Knoxville TN Homes For Sale

We have closed 11 FHA loans so far this year and have 3 that are pending and awaiting closing.  We have yet to have any big problems- one appraiser required some wires to be wrapped in electrical tape and another required a garabage disposal to be fixed (although the buyer did not even care about it).  In another home there were cracked windows and a missing handrail and it passed the FHA inspection and closed with no requested repairs.

In my area FHA loans are the main loans that are closing.

Aug 03, 2009 02:28 PM #9
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Rainmaker
111,108

Steven Wright

CRS - Home Real Estate - 720-989-5283
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