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5 acre “rule” with a twist!

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Greg davenport, Jun 6, 2007.

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  1. Greg davenport

    Greg davenport Member

    0
    Mar 30, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Arkansas
    [FONT=&quot]I know what page 35 of the Fannie Guide says, but I am dealing with a new (to us) twist on this,[/FONT]
    [FONT=&quot]Property is on 10.40 acres. {Per tax records, no survey was provided)[/FONT]
    [FONT=&quot]The loan program will only allow 10.0 acres. [/FONT]

    [FONT=&quot]We have been asked to not value the 0.40 acres. In the area this is in, the 0.40 acres would NOT have value unless it is joined with the subject lot, or a different lot. (too small for a septic tank).
    [/FONT]
    [FONT=&quot]
    [/FONT]
    [FONT=&quot]Can we state this simple fact on a 1004 C, and go on, or not?:shrug:

    No this is not for a broker, but a bank.
    [/FONT]
     
  2. xmrdfghap

    xmrdfghap Senior Member

    0
    Jan 15, 2002
    Professional Status:
    General Public
    State:
    Florida
    It is your job to describe what the property is. It is the underwriters job to determine if it fits their guidelines. If the uw adheres strictly to the guidelines, then that .4 acres needs to bee deeded separately. If the uw decides to accept it anyway, then nothing needs to be done. Either way, it is not your decision to make. Just report what it is.
     
  3. Fred

    Fred Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Retired Appraiser
    State:
    Virgin Islands
    Sounds like it doesn't fit.
     
  4. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    A new record is about to be set for the shortest "Infamous 5 Acre and house" thread on the Forum! Woo hooo


    This does illustrate very well the absurdity of this elusive Rule. For this rule to have any validity in MORTGAGE LENDING it would have to work in all circumstances.

    It just is never going to end until we have a NATIONWIDE bulletin from Fannie and Freddie for ALL appraisers and ALL Lenders to READ!!!
     
  5. David Wimpelberg

    David Wimpelberg Moderator Staff Member Moderator

    53
    Mar 30, 2005
    Professional Status:
    Certified General Appraiser
    State:
    New York
    Misrepresentation of the description of the a property to fit into some loan program is great cause for a review and a great way to get tossed from a lender's list. These requests rarely come from the intended users, and when they do, it is from a misinformed individual.
     
  6. Greg davenport

    Greg davenport Member

    0
    Mar 30, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Arkansas
    That is what I thought, but I told my client I would look into it.

    thanks for the help.
     
  7. Mr Rex

    Mr Rex Elite Member

    151
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Tell them to get an industrial sized tube of Compound W and remove that 0.4 acre wart.
     
  8. Ted Martin

    Ted Martin Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Kansas
    In addition to the site size change they are also asking for a change from an AS IS appraisal to one which is subject to an extraordinary assumption. In the words of my kid, NOT.
     
  9. Webbed Feet

    Webbed Feet Elite Member

    23
    Feb 11, 2005
    Professional Status:
    Certified Residential Appraiser
    Mr. Martin,

    You needed more coffee.... that's "Hypothetical Condition"..in the case of a site that does not really exist the way it is being appraised.. .. not an "Extraordinary Assumption" ......

    I wonder if maybe this is why the 2008 education requirements are such that residential appraisers don't need a four year degree?

    We must be better informed and not need it as badly as CG. .... ;)
     
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