Client demands a HUD1 for each Comp. . .

Discussion in 'General Appraisal Discussion' started by YFA72, Oct 13, 2010.

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  1. YFA72

    YFA72 New Member

    0
    Jul 4, 2010
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    “1.) Appraiser to state he also reviewed the final hud I settlement stmt from the builders file for each sale"

    - Client sent this request after submission of our URAR 1004 Form Report.
    - Subject and 2 comps are new construction. 3 other comps are resales.
    - Is our response appropriate?

    "Please confirm the intent of this request. To us this is a new 'never-seen-before' requirement. If our understanding is correct, the client requires that the appraiser reviews the FINAL Closing Statement (HUD1) for each comparable sale. (Presumably AFTER the closing & signed by the buyer(s) and seller(s)). While we are sometimes provided with a "PRELIMINARY" HUD1 - we are not authorized to DEMAND access to, what the principals might consider, to be a confidential document. Does this new requirement mean that we cannot use 'comps' if the SIGNED, FINAL HUD1 is unavailable, for whatever reason?
     
  2. NORTON

    NORTON Senior Member

    0
    Oct 10, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    your question dances around the real issue, "was this requirement in place at the time of the assignment acceptance, if not, then don't expect it to be met".
     
  3. leelansford

    leelansford Elite Member

    10
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    As the appraisal was communicated, what is (are) the confirming source(s) of each of the builder sales?
     
  4. YFA72

    YFA72 New Member

    0
    Jul 4, 2010
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Dancing with the stars of AF . . .

    In our area appraisal orders just ask for a 1004 URAR Form Report. As stated, it was AFTER I sent in the report that they came back with the request for a HUD1 for each comp.
    So, I guess my question to you is, "Is the demand for a HUD1 as verfication of all comp sales appropriate?"
    Or, my understanding is that all sales data had to be verified. So, is a demand for a review of the HUD1 typically included by residential appraisers?
     
  5. YFA72

    YFA72 New Member

    0
    Jul 4, 2010
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Verification of Comp Sales

    In this case we were provided with a copy of the contract for sale & purchase for the subject. For the comps, we had price & terms confirmation from the seller/builder, the buyer(s), the property cards & Realtor/Multi-List.
    My goal is to eliminate all 'revisions' to our reports. That means accommodating and anticipating clients specific requirements. HUD1's for comps is new to me. So I'm askng is if this is known by other appraisers or just this one client?
     
  6. NORTON

    NORTON Senior Member

    0
    Oct 10, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I think all the lenders have really stepped their requirement(s) for verification regarding new home sales....haven't done one in a very long time but I bet somewhere in the new fannie 2010 goodies, it addresses new home sales. somebody should be chiming in soon with the exact quote(s)....good luck.
     
  7. Denis DeSaix

    Denis DeSaix Elite Member

    35
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    This is from the current Selling Guide (Fannie Mae) (my bold):

    I don't know if the above describes your situation, but if so, it probably explains the lender's request.

    This isn't really new, but I don't think anyone has really enforced it before.


    I do think it will be enforced in the future.


    (Joyce, where are you! :))
     
  8. Eric C

    Eric C Member

    0
    Jul 25, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    You may have access to the HUD1 from the developers for the 2 developer sales. This used to be typical during the new construction boom in my area.

    But for the re-sales, thats practically impossible.
     
  9. AnonApprsr

    AnonApprsr Elite Member

    0
    Jan 21, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    HUD-1 procurement is only recommended as a source when the ONLY source for a transaction price is the builder, as it may not have gone through MLS, or may not be recorded yet.

    If it wasn't in your original scope of work, and you didn't use them as a noted source, than you have total freedom of choice.
     
  10. Denis DeSaix

    Denis DeSaix Elite Member

    35
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    (my bold)

    I agree it is difficult. And, for re-sales, not an explicit or implied requirement in the Selling Guide (yet... :new_smile-l:).
     
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