First post after getting into real estate about a year ago- I would really appreciate some insight on this situation-
In Jan 2020 I closed on 2 duplexes on two separate parcels in Lakewood Washington with an FHA. This was completed in one sale, with one loan.
Close to a year later and I am going through a refi and my loan officer calls me to tell me that the appraiser said they have to appraise it as two different properties. Ok fine, not a big deal- it probably has more value as separate properties any way-
BUT there is a carport in between the two duplexes that is on each property. It only connects to one duplex but it does go across the property line.
They are telling me that in order to get refinanced I either have to get a variance from the city and get it zoned as a fourplex or tear down the car port. They said the loan should have never gone through the first time??
Seems weird for a couple reasons-
The FHA loan closed 10 months ago and none of this came up- isn't FHA supposed to be the most scrutinized?
Tearing down a carport cant be the only solution?
Has anyone experienced anything like this??
Getting some second opinions soon but very curious to see what you all have to say.
I had an issue once where I bought two properties and there was a garage that was built a little over the property line between the two. The issue came up when I sold one of the two properties. Someone told me the title insurance would take care if it since it’s affecting the title, and that’s what title insurances are for. I called the title insurance and they told me that they only cover stuff that is recorded in public records. What a joke, if it’s recorded then I wouldn’t need insurance.
I would try to call the title insurance anyways, maybe your title insurance is better than the one I had. But any type of insurance, their first response is always “we don’t cover that”!
@Dominic Santini Yes, somehow this slipped thru fha the first time...the property(s) don’t qualify for an fha loan....fha is for owner occupied only and you can’t possibly occupy two different parcels at the same time. I don’t know what the solution is.
Update- @Wayne Brooks , you were right- the original loan should have never went through the first time. I recorded an easement with the county for the carport to eliminate that as a problem. It was pretty easy since I own both properties. This allowed me to get 2 different loans, 1 owner occupied and 1 investment property loan.
Weird situation for sure but its all done now- thanks for the help guys!