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arms-length question.please help!

Discussion in 'Urgent - Help Needed' started by 65076507, Sep 29, 2011.

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  1. 65076507

    65076507 Junior Member

    0
    Jan 1, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    So I am doing my 12 month comp previous listing search and my MLS tax record shows a transfer recorded on 01/25/2011 for about 100,000 and the grantee is FNMA. There is no MLS listing of this transaction and the SDAT MAryland tax record states it was an arms-length transaction. I am confused on why this is arms-length. If there is no listing, where is the exposure??? would an auction explain it perhaps??? Never seen this and I need to explain this in the report. Are foreclosures typically arms-length??? Any thoughts? Thanks!
     
  2. Laughing Heir

    Laughing Heir Senior Member

    1
    Oct 16, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Pennsylvania
    Deed-in-Lieu or sheriff sales are definitely not arm's length transfers. You really should take a look at the deed and draw your own conclusions from whatever data you can research. In Pennsylvania, you can get a pretty good idea about the nature of a transfer by viewing the deed; the deed will usually have a Statement of Value when it's NAL.

    No matter what, you should call someone involved in the transaction to get the real story on what went down ... even on seemingly normal comps. The reviewers at my company usually want a sale verified with a Realtor AND the buyer and/or seller - they do this to ensure we find out the motivations of everyone involved.

    Sounds like you will find out a lot about this prior transfer (and your current transfer) by getting your hands on the deed. If that fails use these sites to track down the grantor for that FNMA transfer:

    www.whitepages.com
    www.anywho.com

    Best of luck!
     
  3. AnonApprsr

    AnonApprsr Elite Member

    0
    Jan 21, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    If the buyer is FNMA it's a foreclosure. It's that simple.
     
  4. BOCK FOLKEN

    BOCK FOLKEN Member

    0
    Jun 22, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Sounds like they just made a mistake. Happens all the time around here.
     
  5. residentialguy

    residentialguy Elite Member

    164
    Mar 24, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Minnesota
    :unsure:
    Huh? Who made a mistake. The prior homeowners that lost their house?
     
  6. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    421
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    "Arm's Length" is a misnomer and unless defined in your state by statute, the definition is a moving target.

    Basically, it means the parties are "presumed to have equal bargaining power" (Blacks Law Dictionary). In that event this is a pretty broad blanket to throw over the transaction.

    FNMA (Fannie mae) has "equal bargaining power" in theory. But they are motivated. So the question is whether a true "Market Value" transaction occurs or not when the seller is motivated by law to sell, is an unwilling owner, how long they exposed it on the market, and if that really matters, etc. well... damifino.

    A buyer solicited offer may be an "arm's length" transaction. Both have equal buying power. The buyer may have cash and the seller free title and the deal could be consummated within hours literally. And by my way of thinking, so long as the buyer seller were equally motivated...it's "arm's length" but whether or not the transaction occurred at or above or below "Market Value", that's perhaps another question altogether.
     
  7. Jo Ann Meyer Stratton

    Jo Ann Meyer Stratton Elite Member

    41
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    When the Grantee is Fannie Mae it is a foreclosure and any dollar amount reported is the unpaid mortgage amount that went into foreclosure. Any time Fannie Mae, Freddie Mac, VA, HUD, a bank or a mortgage company, etc is the Grantee it is a foreclosure and not a sale.

    An actual sale would be when one of the above is the Grantor.
     
  8. Webbed Feet

    Webbed Feet Elite Member

    31
    Feb 11, 2005
    Professional Status:
    Certified Residential Appraiser
    Thought I'd help a little... ;)
     
  9. timd354

    timd354 Elite Member

    109
    Jan 11, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    Why don't you just take a look at the deed? Especially since you can download the deed online through the Maryland digital land records retrieval system free of charge:

    http://www.mdlandrec.net/msa/stagser/s1700/s1741/cfm/index.cfm
     
  10. BOCK FOLKEN

    BOCK FOLKEN Member

    0
    Jun 22, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    I am suggesting that either the MLS could make a reporting mistake, or the State could have easily made a recording mistake. It happens here all the time, and sometimes it takes an appraiser or homeowner to discover and correct it. Someone suggested checking the deed...a wise move.
     
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