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The Appraiser signed, the deal funded and the fat lady sang...

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Real Estate Agent with Rocky Mountain Realty #EA40039680

Colorado is a table funded state, we don't do the escrow thing. So when the call came to me from the listing agent 24 hours after the deal closed that there was an issue I was confused. The closer at the title company called the listing agent to tell her she didn't have one of the needed forms. What? If she needed a heating certificate prior to closing how come nobody knew one was necessary? That's right, not the buyers agent (me) or the listing agent knew anything about a heating cert. The lender didn't say anything and how did this get past the appraiser?

So after the long weekend I drove over to the buyers new house to leave a house warming gift. And guess who is sitting in a car at the curb? Yep, the appraiser! "Robert" was so very happy to see me, and I knew why. "Robert" needed to get into the already occupied house to check the furnace and the water heater. But as it happens the buyer wasn't answering the door bell or the phone.

Now a few days later I'm still getting calls from "Robert" the appraiser. He of course would like me to get the buyers attention.

So what do you think about this? Who screwed up?

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All content, including text, original art, photographs and images, is the exclusive property of Dena Stevens, and may not be used without the expressed consent. All information is believed to be accurate but is not warranted, Copyright 2004-2017 Dena Stevens Realtor 719 369-9087. Please note that opinions, real estate practices, prices and data always changes over time, so please keep in mind the date when this information was published as the information could have become irrelevant over the past days, months and years. Copyright Dena Stevens © All Rights Reserved 2017

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Comments (21)
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Chrissy Harrison
Referral Only Realty - Longmont, CO
Dena, I'm not sure how this will shake out, but mu hunch is pointing to the Title company. They issued the commitment of title insurance and their E&O should also cover this. It's unfortunate and I can understand why the buyers want nothing to do with the appraiser. My question is, why is the appraiser doing the check on the furnace and water heater? It seems like that would be an issue going back to the inspection? Keep me posted as to how this all turns out. You can always go to www.frascona.com - real estate law gurus of Colorado.
Sep 05, 2007 02:24 PM
Dena Stevens Coriz
Rocky Mountain Realty - Canon City, CO
Putting The Real Into Realtor Since 2004
If anything happens I'll update this post. And I love Oliver Frascona - doesnt' everyone?
Sep 05, 2007 03:06 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert
Dena, I am glad things are done a little different around here.  I don't think I would like to be you trying to put all this back together again.  GOOD LUCK!!!!
Sep 05, 2007 03:14 PM
Dena Stevens Coriz
Rocky Mountain Realty - Canon City, CO
Putting The Real Into Realtor Since 2004
Hey George, someday would you do a primer on escrow for those of us who don't understand it? How could this have been avoided in escrow? Could it have been avoided? Colorado we make the offer, accept it, get inspections done, appraisals done, docs complete and hit the table on the assigned date. Everything is suppose to be done, signed, pro rated, pre paided, keys are handed over and the seller has a check (or the mortgage company). Seriously, I don't understand how escrow works. What's the chain of events?
Sep 05, 2007 03:20 PM
Chrissy Harrison
Referral Only Realty - Longmont, CO
Yes, Oliver Frascona is the guru of Colorado real estate law. I feel lucky he works in Boulder - he's always teaching some class or another. But seriously, I really want to know how this all gets settled. I'm very interested. I think with the mortgage industry going through its changes, lenders are getting a little nervous and coming up with requirements last minute. On one of my recent deals, the lender ordered a 2nd appraisal the day before closing and didn't tell anyone! The only reason I knew was the listing agent called me asking why an appraiser was calling him and asking questions! Hope it works out.
Sep 05, 2007 03:23 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert
Dena, we do not escrow through a title company either, we are an Attorney State.  When we commit a loan all the conditions are on the back of the commitment letter.  The commitment letter is then sent to the Borrower and the Borrowers Attorney.  The Attorney then does a title search and puts the closing packet together, but is not given a clear to close by us until all of the conditions on the commitment letter are satisfied.  Once that happens and the Closing Date is set, we then wire the money into the Attorney's account the morning of the day of the Closing.  The Attorney then writes out what ever checks are needed out of his account.  The Closing takes place, Seller gives the keys to the Buyer, and the Attorney heads on over to Town Hall to record the Deed on the land records. Also at the same time the Attorney sends the completed Closing paper work back to us.
Sep 05, 2007 03:33 PM
Dena Stevens Coriz
Rocky Mountain Realty - Canon City, CO
Putting The Real Into Realtor Since 2004
Thanks for the explaination George. But it sounds as if the buyer / borrower is protected, how is the seller protected? Who pays for title insurance or is there any?
Sep 05, 2007 03:41 PM
Dena Stevens Coriz
Rocky Mountain Realty - Canon City, CO
Putting The Real Into Realtor Since 2004

Chrissy, appraisers on FHA's are being asked to make sure the furnace and water heater work - not how well. They just make sure hot air is coming up and the water is warm. A checks and balances thing I guess. But why did this appraiser miss this step? Does make you wonder - did he show up to begin with? Or did he just push the papers around from another town? This isn't a new idea for FHA.

Lets face it, inspectors miss things on occasion. And the lender doesn't see the inspection report. What if the buyer says "no big deal I'll fix it my self with my brothers help". Then the lender approves the appraisal on a house that isn't habitable. Some buyers might go for this. And is this the reason why mortgage people and appraisers are getting in trouble.

Sep 05, 2007 03:51 PM
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor

Dena, I was thinking it had to be an FHA loan as that is the only time that I am aware of that any lender cares about the condition of items in the house.  I have seen FHA require peeling paint to be repainted....

luckily we don't do many of them up here. 

Sep 05, 2007 06:46 PM
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Agent
We don't have heating certificates here.  Oh, we close our property through a title company.  I'm in Lee county where the seller pays for the title insurance.  Just down the road in Collier County it's customary for the buyer to pay for it.
Sep 05, 2007 11:22 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection
I am from one of those attorney state so this probably would not have happened.  Will check back to see how this play out.
Sep 06, 2007 12:35 AM
Dena Stevens Coriz
Rocky Mountain Realty - Canon City, CO
Putting The Real Into Realtor Since 2004

Everyone, I'm curious. What is the FHA $$ limit in your area? Pueblo is $200,000.  I'm surprised Breck has FHA qualified houses.

Sep 06, 2007 12:45 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

 Dena these are the FHA Loan Limits in Connecticut, they vary from county to county.  Hope this helps.

 

[HUD home page]

fha mortgage limits list

MSA Name

MSA Code

Division

County Name

County
Code

State

One-Family

Two-Family

Three-Family

Four-Family

Last Revised

BRIDGEPORT-STAMFORD-NORWALK, CT (MSA)

14860

 

FAIRFIELD

001

CT

$362,790

$464,449

$561,411

$697,696

01/01/2006

HARTFORD-WEST HARTFORD-EAST HARTFORD, CT (MSA)

25540

 

HARTFORD

003

CT

$333,735

$375,891

$456,690

$526,950

02/06/2006

TORRINGTON, CT (MICRO)

45860

 

LITCHFIELD

005

CT

$285,000

$321,000

$390,000

$450,000

11/17/2005

HARTFORD-WEST HARTFORD-EAST HARTFORD, CT (MSA)

25540

 

MIDDLESEX

007

CT

$333,735

$375,891

$456,690

$526,950

02/06/2006

NEW HAVEN-MILFORD, CT (MSA)

35300

 

NEW HAVEN

009

CT

$293,075

$330,630

$401,700

$463,500

01/01/2006

NORWICH-NEW LONDON, CT (MSA)

35980

 

NEW LONDON

011

CT

$303,050

$341,330

$414,700

$478,500

01/01/2007

HARTFORD-WEST HARTFORD-EAST HARTFORD, CT (MSA)

25540

 

TOLLAND

013

CT

$333,735

$375,891

$456,690

$526,950

02/06/2006

WILLIMANTIC, CT (MICRO)

48740

 

WINDHAM

015

CT

$200,160

$256,248

$309,744

$384,936

01/01/2006
Sep 06, 2007 01:59 AM
John Popp
Charlotte, NC
Having to take care of problems after the closing is very difficult, only the person who it really affected seems to care that it gets done.  This is wrong,  everyone makes mistakes and I think it is everyones responsibility to help clear conditions even if it is after closing. 
Sep 06, 2007 03:59 AM
John Popp
Charlotte, NC
Having to take care of problems after the closing is very difficult, only the person who it really affected seems to care that it gets done.  This is wrong,  everyone makes mistakes and I think it is everyones responsibility to help clear conditions even if it is after closing. 
Sep 06, 2007 03:59 AM
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP
Dena,  That's weird.  Atleast it closed!  Congrats on that one.  I hope they get the rest worked out.
Sep 06, 2007 05:00 AM
Chrissy Harrison
Referral Only Realty - Longmont, CO
Dena - I didn't realize it was an FHA loan - now it makes sense why the appraiser needed to check the furnace. I hope he carries E&O insurance!
Sep 06, 2007 04:10 PM
Billnulls Blog Florida Realty Professional
Charles Rutenberg Realty - Clearwater, FL
AHWD
So how did this one ever turn out?????
Sep 21, 2007 01:44 PM
Dena Stevens Coriz
Rocky Mountain Realty - Canon City, CO
Putting The Real Into Realtor Since 2004

Thank you all for your comments, and to Bill & Barbara Jo for stalking me - I appreciate it.

To tell the truth I never heard back on the out come. The buyer did call me about a week and a half later to tell me thank you for leaving a house warming gift and that she hadn't been home since they moved. So I'm guessing the appraiser never got the information he needed.

Sep 21, 2007 01:49 PM
Billnulls Blog Florida Realty Professional
Charles Rutenberg Realty - Clearwater, FL
AHWD
Dena- Thanks for the update!!!
Sep 21, 2007 02:28 PM
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