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  #1  
Old 06-06-2007, 07:54 AM
Greg davenport Greg davenport is offline
 
Join Date: Mar 2004
Location: Central Arkansas
State: Arkansas
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Default 5 acre “rule” with a twist!

I know what page 35 of the Fannie Guide says, but I am dealing with a new (to us) twist on this,
Property is on 10.40 acres. {Per tax records, no survey was provided)
The loan program will only allow 10.0 acres.

We have been asked to not value the 0.40 acres. In the area this is in, the 0.40 acres would NOT have value unless it is joined with the subject lot, or a different lot. (too small for a septic tank).



Can we state this simple fact on a 1004 C, and go on, or not?

No this is not for a broker, but a bank.
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Old 06-06-2007, 08:27 AM
xmrdfghap xmrdfghap is offline
 
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State: Florida
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It is your job to describe what the property is. It is the underwriters job to determine if it fits their guidelines. If the uw adheres strictly to the guidelines, then that .4 acres needs to bee deeded separately. If the uw decides to accept it anyway, then nothing needs to be done. Either way, it is not your decision to make. Just report what it is.
  #3  
Old 06-06-2007, 08:57 AM
Fred Fred is offline
 
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State: Virgin Islands
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Quote:
Property is on 10.40 acres.
The loan program will only allow 10.0 acres.
Sounds like it doesn't fit.
  #4  
Old 06-06-2007, 09:08 AM
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Carnivore Carnivore is offline
 
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Location: Queen City
State: North Carolina
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A new record is about to be set for the shortest "Infamous 5 Acre and house" thread on the Forum! Woo hooo


This does illustrate very well the absurdity of this elusive Rule. For this rule to have any validity in MORTGAGE LENDING it would have to work in all circumstances.

It just is never going to end until we have a NATIONWIDE bulletin from Fannie and Freddie for ALL appraisers and ALL Lenders to READ!!!
  #5  
Old 06-06-2007, 09:32 AM
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David Wimpelberg David Wimpelberg is offline
 
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Misrepresentation of the description of the a property to fit into some loan program is great cause for a review and a great way to get tossed from a lender's list. These requests rarely come from the intended users, and when they do, it is from a misinformed individual.
  #6  
Old 06-06-2007, 03:36 PM
Greg davenport Greg davenport is offline
 
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Location: Central Arkansas
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That is what I thought, but I told my client I would look into it.

thanks for the help.
  #7  
Old 06-06-2007, 03:38 PM
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Mr Rex Mr Rex is offline
 
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Tell them to get an industrial sized tube of Compound W and remove that 0.4 acre wart.
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  #8  
Old 06-11-2007, 02:21 PM
Ted Martin Ted Martin is offline
 
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Location: Topeka, KS, USA
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In addition to the site size change they are also asking for a change from an AS IS appraisal to one which is subject to an extraordinary assumption. In the words of my kid, NOT.
  #9  
Old 06-11-2007, 04:51 PM
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Webbed Feet Webbed Feet is offline
 
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Quote:
Originally Posted by Ted Martin View Post
In addition to the site size change they are also asking for a change from an AS IS appraisal to one which is subject to an extraordinary assumption. In the words of my kid, NOT.
Mr. Martin,

You needed more coffee.... that's "Hypothetical Condition"..in the case of a site that does not really exist the way it is being appraised.. .. not an "Extraordinary Assumption" ......

I wonder if maybe this is why the 2008 education requirements are such that residential appraisers don't need a four year degree?

We must be better informed and not need it as badly as CG. ....
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