HUD Handbook 4000.1 Faqs

[Tawfik Ahdab]

Hence the need for legal lot verification. That takes time and money. I think the lender should provide legal verification at the time of ordering the appraisal since we must make a yes/no type of statement about rebuildability and it would be foolish not to mention a liability if we were to present a guess or opinion as a fact.

 

[CANative]

Fannie Mae is much more reasonable.

 

[Elliott]

I've always said, The City of XYZ determines if a burned house can be re-built, they can say x or y in their ordinances, but eventually the city makes the final decision."

All things are political. I just read in the latest AI Journal that a "actual cash value is not market value". A duplex burned, and the Good Hands insurance company said it was worth $50K, though the owner had a $298K policy, and the the owner's appraiser said it was worth $250K. So an arbitrator said it was worth $75K. A judge or jury gets to decide what the owner should get. Moral: Don't trust those cute insurance company ads, if they can find a way of scruing you out of $200,000, they will.

 

[Restrain]

Interestingly enough, on the appraiser's page, the 4000.1 is not a posted handbook at this time, no updates to policies implementing it.

 

[CANative]

 

[Restrain]

But not on the Appraisers Page.

 

[nicholz12]

The "zoning department" will tell you flat out that it can be rebuilt? I've had them tell me probably or "why not?" but they won't give you anything in writing. The new 4000.1 appears to want our statement (not opinion) in writing.

In any case it's not a decision that an appraiser has the authority to make.

Typically it's in the current zoning ordinance, copy the zoning ordinance and paste.

 

[CANative]

Typically it's in the current zoning ordinance, copy the zoning ordinance and paste.

That's what I do. But I add a caveat.

 

[JTip]

I just read in the latest AI Journal that a "actual cash value is not market value". A duplex burned, and the Good Hands insurance company said it was worth $50K, though the owner had a $298K policy, and the the owner's appraiser said it was worth $250K. So an arbitrator said it was worth $75K.

Sounds fair.

People buy Actual Cash Value policies because they don't like the premium associated with Replacement Cost policies.

The arbitrator just gave the owner a $25k gift.