1. Welcome to AppraisersForum.com, the premiere online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Single Family Exterior Order, 3 Unit Upon Inspection

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Renee Burnam, Aug 7, 2007.

Thread Status:
Not open for further replies.
  1. Renee Burnam

    Renee Burnam New Member

    0
    Feb 8, 2006
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin
    I received and accepted an order for a single family 2055 exterior appraisal. Did the research to find out what I could on the property, and went by the house to do the exterior inspection. I noted an almost identical home located next door, accessible by what looked like an alley. When I got back to the office and started the report I noticed on the assessor data sheet that there were three units on this property. So I contacted the assessor's office and they told me that there is a single family home and a duplex, both located on the same parcel. I asked if this was legal and was told it is legal, but non-conforming. I asked if it could be divided possibly by a sale, and was told that because a split would landlock the duplex, it would not be approved.

    So I called the lender. Asked, "Did you know there is a duplex on this property?" Oh yeah, they forgot to tell me that. But they only want me to appraise the single family dwelling.

    Can that be done, especially on a 2055?

    As this was a new lender, one I'd never heard of before, that called me out of the blue, something about the situation didn't sit well with me, and I declined the order. But the question remains, could an appraisal be completed that way, if your order from the lender says appraise just the one family portion, disclosing what I know about the property? Seems to me there's got to be some sort of USPAP violation in there. I just want to make sure I have it right for the future.

    Thanks for your input!
     
  2. David Wimpelberg

    David Wimpelberg Moderator Staff Member Moderator

    129
    Mar 30, 2005
    Professional Status:
    Certified General Appraiser
    State:
    New York
    Theoretically, it could be done if there was a legitimate reason for doing so. Pretending that the property is something it is not to get it in a certain loan program is not such a reason. Usually MB's pull this act, and if anyone at the bank is paying attention, the report gets reviewed and at minimum the appraiser gets put on a watch list.

    Such a scenario would require the use of a hypothetical condition. That is not permitted by Fannie, and the forms are intentionally designed to not include such a scenario.
     
  3. Mike Kennedy

    Mike Kennedy Elite Member

    258
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    :beer: "I declined the order." wise move.
     
  4. leelansford

    leelansford Elite Member

    45
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    I agree with David.
     
  5. leelansford

    leelansford Elite Member

    45
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Is there any possible chance that this "lender" is a MB?

    "Forgot to tell" you...yeah, right.
     
Thread Status:
Not open for further replies.

Share This Page