Requested to reinspect with new effective date...

[KYLECODY]

I did a report as of 9/30. Used 3 closed sales and threw in a pending per their requirements...Very tight range, slam dunk deal. Closed sales were somewhere around 300, 301 and 305k, pure luck. With the pending in that range...I weight the high end as they were able to generate a contract and end up roughly 10k below their contract price. A few days later, the pending sale closes for 10k above list price. Got multiple offers and lucky, similar condition to everything else. So now the genius realtor has decided that his 315k is there. Now the 4 closed sales would be 300, 301, 305 and 315k. I explain effective date to the direct lender and they go away for a few days and now are requesting I do a "reinspect" for a fee and change the effective date....I ignored my initial impulse to get nasty and haven't wasted any more time yet and told them that one sale at "contract price" doesn't override the other 3 closed sales.


In my eyes, new effective date, new appraisal. They are willing to pay but I like principles and not money. Its now 19 days past the original effective date. This one is FHA though so they can't reorder a new appraisal, which I wouldnt do regardless at this point. This is rubbing me very wrong and a slippery slope. Im going to politely tell them to fark off as I don't care what happens 4 days, 4 weeks or 4 months after the effective date. Just curious if anyone knows any specific guidelines they are violating/rules/fancy jargon I can throw back at them when they try and press me on this, which they will? Would anyone else be more open minded than me and actually reinspect with a new effective date and add a sale that may bump value a hair? Im still surprised they requested that, new one for me.

 

[J Grant]

I did a report as of 9/30. Used 3 closed sales and threw in a pending per their requirements...Very tight range, slam dunk deal. Closed sales were somewhere around 300, 301 and 305k, pure luck. With the pending in that range...I weight the high end as they were able to generate a contract and end up roughly 10k below their contract price. A few days later, the pending sale closes for 10k above list price. Got multiple offers and lucky, similar condition to everything else. So now the genius realtor has decided that his 315k is there. Now the 4 closed sales would be 300, 301, 305 and 315k. I explain effective date to the direct lender and they go away for a few days and now are requesting I do a "reinspect" for a fee and change the effective date....I ignored my initial impulse to get nasty and haven't wasted any more time yet and told them that one sale at "contract price" doesn't override the other 3 closed sales.


In my eyes, new effective date, new appraisal. They are willing to pay but I like principles and not money. Its now 19 days past the original effective date. This one is FHA though so they can't reorder a new appraisal, which I wouldnt do regardless at this point. This is rubbing me very wrong and a slippery slope. Im going to politely tell them to fark off as I don't care what happens 4 days, 4 weeks or 4 months after the effective date. Just curious if anyone knows any specific guidelines they are violating/rules/fancy jargon I can throw back at them when they try and press me on this, which they will? Would anyone else be more open minded than me and actually reinspect with a new effective date and add a sale that may bump value a hair? Im still surprised they requested that, new one for me.

Changed effective date means a new assignment. The client probably want you to just change the eff date and pretend it is all one same original assignment. Either way, I would decline. Imo not worth explaining to them why, only that per USPAP a new eff date means a new assignment, and a new appraisal, - and that you do not feel comfortable with the assignment and therefore decline. You might lose them at a client over it but there does come a time that with certain skeezy situations/clients it comes to that.

It is so busy now you can probably replace them easily -

 

[CindyR]

the only reason they want a new effective date is to get a higher OMV. they aren't supposed to do that

 

[J Grant]

Clients are not supposed to instruct appraisers to get X result, clearly they are doing this with the intention/instruction to get the value up to the 315k.

OOut of curiosity, wonder how that pending appraised for that price jump - if the buyer put down their own 10k extra in cash that is one thing, but if was due to an appraisal that over valued it -

 

[KYLECODY]

the only reason they want a new effective date is to get a higher OMV. they aren't supposed to do that

I concur. What specifically are they violating, besides common sense, that I can quote and throw at them?

 

[Terrel L. Shields]

This one is FHA though so they can't reorder a new appraisal,

They probably never submitted it to FHA so does FHA know? I bet not. Nope. Wouldn't do it.

 

[Joe Flacco]

I don't think a new effective date is needed to justify $315k. That pending sale that ended up closing at $315k was the best indicator of market value as of the effective date. I probably would have called the listing agent of the pending sale to find out what the contract price is.

 

[jay trotta]

I did a report as of 9/30. Used 3 closed sales and threw in a pending per their requirements...Very tight range, slam dunk deal. Closed sales were somewhere around 300, 301 and 305k, pure luck. With the pending in that range...I weight the high end as they were able to generate a contract and end up roughly 10k below their contract price. A few days later, the pending sale closes for 10k above list price. Got multiple offers and lucky, similar condition to everything else. So now the genius realtor has decided that his 315k is there. Now the 4 closed sales would be 300, 301, 305 and 315k. I explain effective date to the direct lender and they go away for a few days and now are requesting I do a "reinspect" for a fee and change the effective date....I ignored my initial impulse to get nasty and haven't wasted any more time yet and told them that one sale at "contract price" doesn't override the other 3 closed sales.


In my eyes, new effective date, new appraisal. They are willing to pay but I like principles and not money. Its now 19 days past the original effective date. This one is FHA though so they can't reorder a new appraisal, which I wouldnt do regardless at this point. This is rubbing me very wrong and a slippery slope. Im going to politely tell them to fark off as I don't care what happens 4 days, 4 weeks or 4 months after the effective date. Just curious if anyone knows any specific guidelines they are violating/rules/fancy jargon I can throw back at them when they try and press me on this, which they will? Would anyone else be more open minded than me and actually reinspect with a new effective date and add a sale that may bump value a hair? Im still surprised they requested that, new one for me.

Office Policy and;
FNMA ML 2015-02 clearly states: "Before asking the appraiser to consider any alternative sales, it is imperative that the lender analyze the relevance of the sale and determine if the use of such sale would result in any material change to the appraisal report". Therefore, if the appraiser is requested to review any other sales after the effective date, the appraiser will only accept the order to review the sale(s) if the following two (2) conditions are met:

I have mine, you can review the Letter and decide how you wish to proceed

 

[Joe Flacco]

Prices are going up man.

 

[jay trotta]

Have seen 3-5 deals fall apart over the past 2 weeks; Overpriced and Cold Feet; you feel like jumping into the cold river, be my guest.