Occupancy

[Terrel L. Shields]

We are NOT the occupancy police. If the client states it is owner occupied and if whoever lets you in states he/she is the owner occupant that is good enough for me.

I want it in writing.

 

[Marcia Langley]

If you accept an assignment that includes reporting on occupancy it behooves you to do so.

It is also outside the SOW to 'police' it.

Report what you see.

If there is no indication that the owner of record does not occupy the house I comment to that effect by saying just that.

"In the development of my appraisal I discovered no indication that the owner of record does not occupy the subject dwelling."

In this way I am not claiming to have personal knowledge of the status of the occupant. I am simply reporting what I saw or did not see.

If I do discover an indication that the owner of record does not occupy the dwelling, I report that.

"The name on the subject mailbox is Joe Blow and the owner of record is Sophisticated Character. This is deemed to be an indication that the owner of record does not occupy the subject dwelling."

If you know it, or saw it, you must report it. You don't have to research it.

In the case of the original poster I believe there is a valid indication that the owner of record does not occupy the subject. The problem is that the indications seem circumstantial.

If this were my assignment I would look for a more explicit indication of occupancy. It should not take much and it would not make me feel like a policeman (person).

 

[murray stroupe]

Re; Statement of owner occupied

I want it in writing.

=======================

The bankers like Ron's suggestion also ;
they always ask for my drivers license, unless they recognize me or my name.When possible ,always supplied it,;sometimes asking if they wanted to see it, since so many do want to see it.

 

[Kevin A. Spellman]

Voter registration is a one of the test the IRS uses to qualify a property as a primary residence. Here in MA we have a statewide voters registration system. A new registration in another community or a new address does change your primary residency in the eyes of the IRS.

Providing service to a reverse mortgage request, I strongly suggest you confirm the occupancy/occupant. This is one of the first requirements to qualify.

 

[Carnivore]

Ask the Lender to give you a copy of the Statement of Occupancy the borrower signed for them!!!

If they dont have one, then get the borrower to sign one and include it in your report.

 

[Ray Miller]

Am I all Wet

Where in the 1004 form report does it ask for a check mark that says "primary residence"?

I find it ask for borrower, owner of record. Then if the occupant is the onwer, tenant or if it is vacant?? Then it goes on to ask; Is the property seller the owner of public recrod. I see no where it ask if the subject property is the "primary residence".

Would someone be as kind to point out where in the report it ask this question or where you are certifing that it is the "primary residence"?

 

[Don Clark]

Mr. Miller,

Congratulations on having two homes. However, no matter how you cut or dice it, only one home can be your primary resident. However, for the appraisal I would mark it either owner occupied, tenant, vacant, and explain what I observed at the time of the inspection in the addendum.

Why is it that so many lenders will not finance a second and/or vacation home even if they are by your definition "owner occupied"? Try getting FHA financing on your second "owner occupied" home.

As far as Primary resident is concerned it can be identified by: which address do you use to vote in the general election. What address is on your driver's license? Where is your car registered. Which State Tax do you pay income tax? Which home do you claim and deduct on your federal and state for the mortgage interest?

The form report ask for Occupant....Owner....Tenant....Vacant. I don't see a block for "Primary Resident". I too own a second home. it is fully furnished, Has clothes in the closets, non perishable food in the Refrigerator, and more than 1 TV set. I "occupy" the home about once a month for 1-3 days in the winter on average, and more in the summer as it is near the beach. Now, am I an "Owner Occupant" ? I believe I am. The fact that for mortgage purposes and risk management some lender sees it differently does not make it otherwise.

 

[Couch Potato]

Would someone be as kind to point out where in the report it ask this question or where you are certifing that it is the "primary residence"?

You won't find quite a few things on a FNMA form that a prudent appraiser will include in a report, if they find the information during the preparation of the appraisal. Occupancy misrepresentation is one of the most common forms of mortgage fraud. If one does not want to be accused of assisting in such a fraud, one will provide more than a checked box on the form when a situation is less than clear. Knowing someone has more than one place to live would definitely qualify as less than clear. By providing clarifying details one is sure the line to a misleading report is not crossed.

It's all part of the difference between good and good enough. :new_smile-l:

 

[Ray Miller]

You won't find quite a few things on a FNMA form that a prudent appraiser will include in a report, if they find the information during the preparation of the appraisal. Occupancy misrepresentation is one of the most common forms of mortgage fraud. If one does not want to be accused of assisting in such a fraud, one will provide more than a checked box on the form when a situation is less than clear. Knowing someone has more than one place to live would definitely qualify as less than clear. By providing clarifying details one is sure the line to a misleading report is not crossed.

It's all part of the difference between good and good enough. :new_smile-l:

I will not disagree with you that occupany is a problem at times. But when a person owns two or three or four homes as in many cases. They don't rent it out, there clothes, food and personal items are in the subject and they use the subject property. How can you mark it any thing but owner occupied. You should go on to state in the nartive part of the report that it is an additional home for the owner, s/he uses it. But to say it is vacant or tenat occupied is wrong.

In the area many of the homes are second homes with no rental income, many of the homes are in a rental pool and rented out daily, weekly, monthly and used by the owner. I noted this information the reports if it is or is not a rental, condo-tel, just what the nature of the beast is.

Lets say the owner occupies it 4 months of the year, a number of different rents occupies it a total of 4 months a year and it sits vacant 4 months of the year. How would you mark the report?

 

[Richard Carlsen]

The reporting form does not ask use to state the "residency".

It asks us to state what we considered to the "occupancy" status at the time of inspection. That is all you have to do. You have no authority or responsibility as I said, to vois dire the occupant, look at mail, check voter registration lists, talk to the neighbors or anything else.

As to the HO occupying the property at the time, residency is a legal definition under IRS and voter registration laws. Therefore, based on Limiting Condition 1, "The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. "

This means that you only have to put into the report that which you have viewed and believe is true based on your understanding at the time of the inspection. If the HO lies to you about their residence, then you are not responsible for this being an untrue statement under FNMA written Limiting Conditions #1,

Why fret over or make a big deal about something you have no control over?