TOPIC: FHA Compliance Inspections

www.hud.gov/offices/adm/hudclips/forms/files/92563.pdf

Thanks, Dennis

your welcome 

Why doesn't the buyer just pay you? Why does the lender pay?

There was tons of fraud when the ordering process was left to others.  Sometimes no final was performed at all.  The builder would tell the lender "The property is complete", they would close escrow, advance hundreds of thousands of dollars to the builder only to discover the property was NOT complete.  The buyers would try to move in without utilities, appliances, sewer system, etc...  FHA and or Fannie and Freddie would be left holding the bag as many of the builders went BK or just simply folded up shop and left town.  Remember most developments are formed as individual LLC's, when things get bad, the owners just walk away from the LLC or Corporation.

Fast forward to 2009...  The government throws the responsibility of the FHA Final Inspection at the lender.  Without the final, underwriting won't pass it along, funding won't happen and the buyer can't move in.  I just left a job this morning that is NOT ready for final inspection.  It will delay the closing for approximately one week.  The sales staff offered to take photos at completion and send them to me.  I thanked them for the thought, but reiterated "My" responsibility to personally witness the completion, including photos and to sign off on the FHA Compliance Final Inspection Report.  It's the Federal Government we're dealing with, after what has happended to the housing industry, I don't want them getting pissed off at me!

Will,

Next time your up North call me.

Paul Pendley
Premier Property Inspections
866-458-8516
premierpropertyinspections.net

I had a client schedule a home inspection today, then the last thing he asked was if I was FHA certified. I am not and told him so. My understanding is that FHA does not require a home inspection, but he said I had to be FHA certified. I think he has this mixed up with the appraiser, but I am not sure, I didn't see any paperwork and can only take his word for it. If I really needed to be FHA certified, then my understanding from this thread is that I would have been contacted by the lender to do their inspection with their checklist. I guess I am wondering how to handle this if it happens again, I just lost this inspection.