What to do when an FHAloan falls apart because of the Appraisal.

Homefails the FHA appraisal because the property is not up to Minimum PropertyStandards.Seller is not willing to makethe needed repairs? Or the Appraiser states that the loan cannot be financed with either an FHA or VA Loan....

Don't lose the transaction, because ofproperty standards not being met, re-position into a 203k and get the loanclosed.All repairs will be made andmaybe a few extras.

It is important that your Customers understand the loan can be salvaged.

Often,the alternative is a better solution than the original attempt.These deals can be saved, and everyone willwin.

What are some of thereasons a home may fail either an FHA or VA appraisal:

• Grading does not provide positive drainage from structure
• Water Stands or pools near the structure
• The house or other structures on the property show evidence oftermite infestation
• The foundation has failed because of settling
• Roofing does not have a 2 year life expectancy
• HVAC doesn't work property
• Automatic garage door is not a safe model.Does not stop itself if an object (child)gets under it
• Electrical switches/outlets do not function
• Plumbing: If it doesn't=twork, it won=t pass,i.e. leaking, seeping, no hot water, etc.
• Lead based paint is evident
• No storm windows or shutters
• No gutter or down spouts
• Mold or Mildew
• Leaking Basement
• Out of date Kitchen or Bathroom
• The home has been stripped when the formerowners lost the home to foreclosure

If you want to create a Customer for life, save a property that does not pass theminimum property standard, refocus to a 203k loan, save the sale.

Rob Alley, Realtor at RE/MAX Assured Properties
434-220-7133
roballeyrealtor@gmail.com
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