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condo on a 1004?

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by emeryalan, Jan 17, 2009.

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  1. emeryalan

    emeryalan New Member

    0
    Apr 7, 2008
    Professional Status:
    Licensed Appraiser
    State:
    Montana
    Just a quick question, got a client breathing down my neck and a pile of appraisal a mile high ...

    I did a condo on a 1073 ~4 weeks ago. Client comes back today and says they need it on a 1004. Will FNMA allow this? Thanks!
     
  2. Jerry Bone Jr

    Jerry Bone Jr Senior Member

    0
    Feb 23, 2004
    Professional Status:
    Licensed Appraiser
    State:
    Oregon
    You could do it on the 1004c.
    Are you sure it's a condo, not a pud. Maybe, you client is telling you, it's not a condo so report it on the 1004.
    Why would your client want it on the 1004? They know not what they ask.
    With some exceptions, Fannie will not accept a a condo on a 1004.
    But, if they're gunna pay you more, then do it.
     
    Last edited: Jan 17, 2009
  3. PropertyEconomics

    PropertyEconomics Elite Member

    1
    Jun 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico
    Are there CC&Rs? Is there a condo association? How does the deed read?

    Im sure Jerry didnt mean for you to do it at the cost of being misleading .. so make sure you dont do that.
     
  4. emeryalan

    emeryalan New Member

    0
    Apr 7, 2008
    Professional Status:
    Licensed Appraiser
    State:
    Montana
    Thanks for the quick responses!

    Yes, it is without doubt a condo, with Condo Decs describing common & lim common elements, a COA, and a deed that spells it all out. Definitely not a PUD.

    It is, however, physically constructed like a townhouse (with 1 adjoining unit), as are all the other units in the project. You would not know they were condos by looking at them.

    I don't know why she wants it on a 1004 yet.

    1004c is for mobs ... how would that work?

    Thanks again!
     
  5. leelansford

    leelansford Elite Member

    48
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois



    Asking that question, and receiving an informed response, is as good a place to start as any.

    Barring something highly unusual as to client/intended user requirements (including, but not limited to, a loan not headed to the secondary market), most definitely someone in the chain is misinformed.
     
  6. Don Clark

    Don Clark Elite Member

    46
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
    A mobile home is persoanl property. Would you by chance be referring to a HUD Code Manufactured Home? A Manufactured Home can be completed on the 1004C if it is a unit in a MH Condominium. Also, there are some condominiums, like one I am doing next week, that is comprised of only 2 units. That's right, the entire cono is just 2 units. In the one I am doing a 1004 may be appropriate as one unit owner is buying the other unit, a Fannia Mae REO property. But, I will do it on a 1073 anyway as it is a condo.

    Please note, dor the 3,000th time, a condominium is a FORM OF OWNERSHIP, not an ARCHETCTURAL style. A townhouse is an archetectural style.
     
  7. ghrousseau

    ghrousseau Member

    0
    May 5, 2006
    Professional Status:
    Licensed Appraiser
    State:
    Virginia
    I checked on allregs and in the 2007 seller guide it does say that the 1004 can be used for detached condominium units. You mentioned your unit shared a common wall with an adjacent unit so I would consider that as attached. I don't think the form they are requesting is appropriate, and it could possibly be misleading to the end reader.

    This is from XI, 203: Appraisal and Property Inspection Report Forms (11/01/05) in the 2007 seller guide


    Uniform Residential Appraisal Report (Form 1004) for appraisals of one-unit properties and units in planned unit developments (including those that have an illegal second unit or accessory apartment) based on interior and exterior property inspections. Form 1004 also may be used for two-family properties, if each of the units is occupied by one of the co-borrowers as his or her principal residence or if the value of the legal second unit is relatively insignificant in relation to the total value of the property (as might be the case for a basement unit or a unit over a garage). In addition, appraisals for units in condominium projects that consist solely of detached dwellings may be documented on Form 1004, if the appraiser includes an adequate description of the project and information about the owners’ association fees and the quality of the project maintenance.
     
  8. CANative

    CANative Elite Member

    534
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Doggonit Don. Stop saying that (a mobile home is personal property).

    A mobile home (factory built home, permanent steel chassis, built prior to 6/15/76 to a building code other than HUD) is not necessarily personal property. If it is permanently affixed to land held in fee simple than it is real property.

    Sorry. Didn't mean to lash out. For some reason this pushes my buttoms..:laugh:
     
  9. VolcanoLvr

    VolcanoLvr Senior Member

    37
    Oct 30, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    Condo is a form of ownership, not construction.

    PUD is different from Condo, although in many cases similar in operation due to having an HOA.

    If your assignment dwelling is completely and individually owned by the borrower, including the dirt it sits on, it is an attached SFR, which should be reported on the 1004Form. It is possible that the property legal description reads 'condo', however that could be due to the existence of a HOA serving the subdivision to maintain common areas, in which case it's actually a PUD. You need to fully explain these details in the report. HOA dues are collected to maintain the common areas. [We have a number of these projects out here.]

    If the dwelling EXTERIOR and the DIRT is owned by the Condo Association per the deed and formation documents, then it is a Condo, reported on the 1073 Form (for an interior inspection). In this case the borrower owns a fractional interest in the exteriors and common areas of the entire project, but entirely owns the interior of the subject dwelling. Association Dues support the maintenance expenses for all common areas, insurances, reserve accounts, etc.
     
  10. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    976
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
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