Real Estate Appraisal Forum

appraisersforum.com logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
 
 
Go Back   Appraisers Forum > Real Estate Appraisal Forums > General Appraisal Discussion
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 05-17-2006, 09:44 PM
Jordan Scott Jordan Scott is offline
 
Join Date: Aug 2005
State: Maryland
Professional Status: Licensed Appraiser
Posts: 263
Default Anyone in here do bankruptcy appraisals?

Thanks for your help

Last edited by Jordan Scott : 03-22-2007 at 10:23 PM.
Sponsored Links

  #2  
Old 05-17-2006, 10:00 PM
bart nathan bart nathan is offline
 
Join Date: Jun 2005
State: California
Professional Status: Certified Residential Appraiser
Posts: 677
Default

nope.. use the old form and be sure to describe what you are doing in your scope of work.
  #3  
Old 05-17-2006, 10:17 PM
Jordan Scott Jordan Scott is offline
 
Join Date: Aug 2005
State: Maryland
Professional Status: Licensed Appraiser
Posts: 263
Default Bart

I can use the old drive-by form? Also, why can't I use the new one?
  #4  
Old 05-17-2006, 10:19 PM
xm72mhd xm72mhd is offline
 
Join Date: Aug 2005
State: Florida
Professional Status: General Public
Posts: 5,224
Default

Do every appraisal, and especially this one as if you were going to be crucified on the witness stand. Be sure everything you do is based on fact. Use the old forms, if that's what the cleint wantrs, but have a work file that would support the most difficult review you can imagine.
  #5  
Old 05-17-2006, 10:29 PM
leelansford leelansford is offline
 
Join Date: Mar 2002
State: Illinois
Professional Status: Certified Residential Appraiser
Posts: 13,614
Default

Intended Use....Intended User...Scope...

Where do we start and where do we end?
__________________
Lee Lansford, IFA
"My opinions & my opinions only!"
  #6  
Old 05-17-2006, 10:59 PM
Denis DeSaix Denis DeSaix is offline
 
Join Date: May 2005
Location: Northern California
State: California
Professional Status: Certified General Appraiser
Posts: 14,631
Default

Quote:
Originally Posted by Jordan Scott
My question is can I do an appraisal for non-lending purposes on the new drive-by form and do I have to put anything in the addendum stating its for a bankruptcy?
Jordan-

Please take my comments as they are intended- a hopefully helpful answer to your question:

The way you phrased your question leads me to infer that you have specialized in mortgage finance transaction appraising. No surprise (or shame!) here, as mortgage lending is where the largest volume of appraisal work comes from. The majority of my work is mortgage related, so consider me one of your "peers".

Your specific questions:
A. Can I use the new form?
and
B. Do I need to add anything in the addendum?
indicate to me that you may not fully realize the importance of the concepts of "Intended User" and "Intended Use": Fannie has provided all the identification requirements in their pre-printed forms for mortgage appraisal purposes; as a practical consequence, the appraiser that does mostly (or only) mortgage work rarely needs to consider how these concepts are applied to the "typical" mortgage appraisal.

A bankruptcy appraisal, or any other non-lender appraisal, is a much different type of assignment. It is required that the appraiser be able to properly identify the client, intended user and intended use, and then to develop the analysis that is appropriate for the assignment, and report it in a manner that is meaningful to the intended user.

Your question regarding the form and the addendum fail to take into consideration the following:
1. On the form itself, it clearly says that the intended use of the report is for a mortgage finance related transaction. Furthermore, if you plan on signing the form's certification, you are certifying that the intended use is for a mortgage finance related transaction, and that no change to this intended use is possible.

2. The question "do I have to put anything in the addendum stating its for a bankruptcy" fails to acknowledge that any appraisal report format one uses needs to identify somewhere that the intended use is for a bankruptcy.

3. Inherent in the above is my inference that you may not realize that you are required to transmit your analysis (the way you write your report) in a manner that is meaningful to the client. This means, if your bankruptcy appraisal is going to a non-lending entity for a non-lending purpose, chances are very good that things like "15% net adjustment guidelines, 1-mile radius for comps, comps no more than six-months old" are not only meaningless to the user, but there application in the analysis could be very inappropriate given the intended use.

I originally started appraising doing only lender work. When I tried to expand my practice to non-lender work, it was painfully clear to me that by working only in the "mortgage finance environment", there were many appraisal concepts that were "taken for granted" with lender work that I had to really re-educate myself on for non-lender work.

If you have specialized in mortgage finance appraising up to this point, and want to expand your services, this is a smart thing to do. However, if you are not fully comfortable (and, as required by USPAP, professionally competent) in being able to apply the basic concepts of intended user and use to a non-lending appraisal assignment, my suggestion would be to get with someone who has expanded their services and who regularly does non-lender work.
Another alternative is to take a refresher course in USPAP, and concentrate on everything up to SR-4.

Good luck!
  #7  
Old 05-18-2006, 06:00 AM
Mike Kennedy's Avatar
Mike Kennedy Mike Kennedy is offline
 
Join Date: Sep 2003
Location: Southern Hudson Valley
State: New York
Professional Status: Certified Residential Appraiser
Posts: 27,941
Thumbs down Back to Class!

Quote:
Originally Posted by Jordan Scott
My question is can I do an appraisal for non-lending purposes on the new drive-by form and do I have to put anything in the addendum stating its for a bankruptcy?
short n sweet.

a. are you Certified, Licensed, or a Trainee? (your question implies that regardless of which "paper" you hold, you have no clue re: new FANNIE MAE FORMS..........! (i.e. ONLY to be used for mortgage transactions currently or in future on loans to be sold to FANNIE).

b. Intended User and Intended Use - if you are not certain both are required in EVERY appraisal.........surrender your license.

c. Unless you secure the services of a Supervisory Appraiser, your lack of competency precludes you from accepting the assignment. USPAP Competency and Ethics - go read them . twice.

d. it's the Appraiser's responsibility to advise the Client (the attorney) whether a Limited Scope Appraisal on "short form" with Exterior Only is sufficient for the purpose of the appraisal.

e. cutting corners can lead to disaster.

f. recommend, in the strongest terms, BACK TO CLASS.
  #8  
Old 05-18-2006, 06:14 AM
Doug Meyer's Avatar
Doug Meyer Doug Meyer is online now
 
Join Date: Sep 2003
Location: Central Indiana
State: Indiana
Professional Status: Certified Residential Appraiser
Posts: 3,728
Default

Do be prepared to defend your appraisal in court if necessary. Have you done professional court testimony? I always quote a fee for this service UPFRONT to the homeowners and lawyers.
__________________
Never allow someone to be your Priority while allowing yourself to be their Option !

Member NAIFA
  #9  
Old 05-18-2006, 06:22 AM
xm39hnu xm39hnu is offline
 
Join Date: Jul 2003
State: Florida
Professional Status: General Public
Posts: 4,338
Default

Ditto the other responses. I'd use a narrative or the new AI forms, if the client will accept them.

"For bankruptcy purposes" is not a good statement of intended use. Ask WHO will be using the report; get specific answers. After you get specific answers, ask "In addition to those people, will anyone else be using the report?"

Then ask, "WHAT information will they be looking for in the report?" and "HOW will they use this information?"

Ask also whether reduced market times should be considered. Are you looking for market value, or for liquidation value?

Sample intended use: "The report will be used by the client attorney to aid in preparing a petition for bankruptcy for his client, Joe Sixpaque; it will be used by the Trustee to determine an asking price for the real property assets of the bankruptcy estate; and it will be used by the bankruptcy Judge to determine whether the assets of the estate have been liquidated fairly and properly."

Purpose of appraisal: To determine the (fair market value)(market value)(liquidation value) of the (real)(personal) property belonging to Joe Sixpaque. [Choose as many options as may apply]

Definition(s) of value(s) sought: Cite the sources of your definitions.

This is by no means comprehensive in scope, and will vary with the needs of the client and court.
  #10  
Old 05-18-2006, 06:30 AM
xm72mhd xm72mhd is offline
 
Join Date: Aug 2005
State: Florida
Professional Status: General Public
Posts: 5,224
Default

Quite often, not always, but usually, a bankruptcy appraisal is used to convince the trustee and the court that there is no equity in the property, therefore nothing for the trustee to get for the creditors. A potentially large audience for your appraisal, and it will become a part of the files of multiple attorneys and perhaps the basis of a bone of contention if someone doesn't agree with you.
Sponsored Links

Closed Thread


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump




Copyright © 2000-, AppraisersForum.com, All Rights Reserved
     Terms of Use  Privacy Policy
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites:
AppraiserUSA.com - National Appraiser Directory AllDomainsUSA.com - Domain Name Registration
DeadbeatListings.com - Deadbeat ListingsAppraiserSites.com - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking
CordlessPhoneStore.com - Great Cordless Phones AndroidTabletCity.com - Android Tablet Computers

Follow AppraisersForum.com:          Find us on Facebook            Follow us on Twitter


All times are GMT -5. The time now is 07:26 AM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93