November 21, 2014
A reader asks, “I bought a home with FHA loan and a well system and septic. Later found the well was a spring box system and not on the property we were forced to buy the property seperate from the house .”
“The well has never worked and runs out all the time , i was told that FHA wouyld be inspecting the well system prior to closing , but now we have asked for the inspection and it was never done on the well or the septic systm . Any ideas on where to get help?”
It may simply be a case of the way this reader question was worded, but it’s worth pointing out that the FHA itself does not perform well inspections, or similar services. An FHA appraisal, which is not the same as a home inspection, may include a review of a well system or septic system, but this is done by a licensed appraiser and not by an agent of the FHA.
In this case, it’s difficult to know how to answer the reader’s question except to say that legal counsel may be needed to see what options or recourse might be available. The borrower is always encouraged to pay for a home inspection, which is not the same as an appraisal.
We aren’t saying this did not happen in this particular case, but some borrowers do seem content to rest on the results of the FHA appraisal, and this is definitely not recommended. Borrowers should always pay for a home inspection above and beyond the appraisal. That may or may not have happened in this particular case.
The FHA appraisal is never a stamp of approval on a home or a guarantee that it is free of defects. The optional, borrower-paid-for home inspection is a much closer look at the property and its condition. Again, the only recourse this reader might have is to seek legal counsel, but state or local laws may also have a say in how the matter could be remedied.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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