Profile picture for elflauta

Why do I need a survey for a reverse mortgage?

We have done the appraisal, completed repairs and had a final inspection. Now the bank says we need a survey. It's one thing after another with this loan. And they said it would be done this week. Well, today's Friday....lol
  • April 01 2011 - US
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Answers (9)

Best Answer

A survey is standard for all mortgage loans to insure the property. Without a survey there could unknown encomberences on yout property or the property lines were drawn incorrectly resulting in your neighbors fence on your property or vice versa.
The only thing I would question is why they waited so long to order the survey. 
  • April 01 2011
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Most lenders require one but not a new one.  If you have an old one that is still the same, no additions or changes, they will except it.
  • May 01 2012
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Ask your loan officer why they are asking for a survey.  Was there something that as mentioned in the appraisal review that is prompting this?
  • April 05 2011
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well hells bells; the wrong answer got "best answer".

Here's the reference, hit the link and go to XII: third party fees; HUD does not require a survey.

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/93-22ml.txt

Ergo, since it then must be a requirement only of your particular lender, I agree with Gordan's question on "why did they wait so long to order it?"

btw: a location drawing is cheaper than a survey, you should see if that would be sufficient.
  • April 02 2011
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None of my borrowers were required to do this on their reverse mortgage loans. Out of curosity, what's the name of the Reverse Mortgage Company?

Happy funding, Rudi
  • April 02 2011
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the VA still doesn't limit the seller contribution towards closing costs to 4%. VA doesn't put a limit on that at all.

How is that relevant to a property survey?

  • April 01 2011
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Norm, Your the same guy who said in another post that VA did not limit seller contributions to 4%. It may be time to get refreshed on the market.
  • April 01 2011
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a survey is not standard for all mortgage loans. with rare exception it is optional.

If the client wants a survey it's up to the client to order it.
  • April 01 2011
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Profile picture for wetdawgs
The property is collateral for the money received, so they want to make sure it is what you say it is. 
  • April 01 2011
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