Colorado: In search of Certified / Professional Opinion of an Appraisal

[Mark K]

I was told to look for an appraiser who can value personal property.

Most everyone on this forum is a REAL ESTATE appraiser, not a personal property appraiser.

https://www.jdpower.com/manufactured-homes

That site is probably as reliable as any for mobile homes/personal property.

 

[LostInClifton]

Most everyone on this forum is a REAL ESTATE appraiser, not a personal property appraiser.

https://www.jdpower.com/manufactured-homes

That site is probably as reliable as any for mobile homes/personal property.

Thank you! I will check there as well as leaving this original post up.

 

[Terrel L. Shields]

I was suggested to come here to HIRE an APPRAISER.

It is likely that there is little incentive to do an appraisal that will only make the client poorer and unhappier. I am familiar with Mesa County and Clifton having worked in Grand Junction for a time many years ago. In fact, I sued a guy there and had liens on 3 of his properties before he ponied up what he owed me.

I can say that Colorado considers a manufactured home to be real property if the unit is permanently attached to the foundation and the title has been surrendered. The difference can be noted by whether you get one tax bill for the land and one for the MH (personal property), or only one bill for both (real property.) In the case of a leased land plot, the unit is most likely treated as personal property.

So, what is the issue? If financed by HUD or FNMA, then there would be the issue of lending on personal property and the HUD direct endorsement underwriter can answer for FHA and Lord only knows who might answer for FNMA.

As for Realtors, I doubt any of them know enough about appraisal regulations to determine if the report is USPAP compliant or abides by state or federal regulations. If the unit is pre-HUD code then it does not qualify for secondary market finance anyway. If personal property, the lender should file it as a UCC.

 

[LostInClifton]

It is likely that there is little incentive to do an appraisal that will only make the client poorer and unhappier. I am familiar with Mesa County and Clifton having worked in Grand Junction for a time many years ago. In fact, I sued a guy there and had liens on 3 of his properties before he ponied up what he owed me.

I can say that Colorado considers a manufactured home to be real property if the unit is permanently attached to the foundation and the title has been surrendered. The difference can be noted by whether you get one tax bill for the land and one for the MH (personal property), or only one bill for both (real property.) In the case of a leased land plot, the unit is most likely treated as personal property.

So, what is the issue? If financed by HUD or FNMA, then there would be the issue of lending on personal property and the HUD direct endorsement underwriter can answer for FHA and Lord only knows who might answer for FNMA.

As for Realtors, I doubt any of them know enough about appraisal regulations to determine if the report is USPAP compliant or abides by state or federal regulations. If the unit is pre-HUD code then it does not qualify for secondary market finance anyway. If personal property, the lender should file it as a UCC.

I appreciate the well thought out response.

To follow up, I did find an appraiser after all who handles regular property, their assessment is as follows:

After reviewing the provided document labeled “Manufactured Home Appraisal,” two key issues became immediately apparent:

1. The report was not completed by a licensed appraiser in the state of Colorado.
2. Because it does not meet the threshold of a legitimate appraisal under professional appraisal standards, it is not eligible for an appraisal review under USPAP.

In order for an appraisal review to be performed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP), the subject of the review must be a bona fide appraisal completed by an individual authorized and qualified to perform such work. Since that is not the case here, an appraisal review assignment is neither possible nor appropriate.

To clarify the basis for this conclusion, please consider the following points:

• Licensed appraisers—whether performing real property or personal property appraisals—are required to comply with USPAP.
• Although the State of Colorado does not currently require licensure to appraise personal property, a licensed appraiser who elects to perform a personal property appraisal remains bound by USPAP.
• The report you provided was signed by an individual named <censored>, bearing an identification number listed as "<censored>." A search of the Colorado Department of Regulatory Agencies (DORA) Division of Real Estate license database revealed no corresponding licensed appraiser in Colorado with that name or identification number.
• The content and format of the report are inconsistent with USPAP standards in nearly every respect. While Colorado does not regulate personal property appraisal by unlicensed individuals, this lack of regulation may also limit the ability to pursue any formal recourse or file a regulatory complaint.

Unfortunately, due to the fact that this report does not meet the definition of an appraisal under USPAP, and was not prepared by a licensed or credentialed appraiser, I am unable to proceed with an appraisal review.

The PDF evaluating how the appraisal was handled is even more damning than the above info I quoted, however, I can't easily copy and paste it.

Although I may not be able to pursue the appraiser directly, or may have limitations, the mortgage required a valid appraisal to meet or exceed the mortgage value to be a valid mortgage. So I apparently have an incredibly strong case for either a renegotiated mortgage or an outright recision.

 

[Terrel L. Shields]

how the appraisal was handled is even more damning than the above info I quoted,

So, they called it an "appraisal" but it was not an appraisal by a regulated and licensed appraiser... the lender certainly is amiss here I would think.

 

[sputnam]

HI!

I need to find an appraiser willing and capable to examine an appraisal over 2 years old which was made for a Mobile Home that is on a Leased Lot in Mesa County, Colorado. We need to determine if the process used by this appraiser was following state and federal guidelines. We have had several real-estate agents tell us that it did not follow guidelines, and a few appraisers who said that it definitely needs to be examined. We were told by these individuals that the comps used for appraisal were not with properties in similar condition. I was told to look for an appraiser who can value personal property.

We have videos and photos of the property during that period, so there is a time capsule that can be used to examine the process.

We aren't looking specifically for a new appraisal, in fact, a new appraisal may cause some difficulty. But we definitely need to have the integrity of the appraisal process (and how the appraisal came to be) to be examined.

This needs to be a certified / professional opinion.

It is in Mesa County.

Please contact via dm if interested. Time is of the essence.

Appraisal Reviews can examine all or any parts of an appraisal report. Since your concern is regarding compliance with state and federal guidelines (I'd add USPAP), you do not need to find an a review appraiser with geographic competence for Mesa County. Of course, you might find someone who is. Any review appraiser who is well versed in the requirements of USPAP, California, and the United States that apply to the property can help.

 

[LostInClifton]

So, they called it an "appraisal" but it was not an appraisal by a regulated and licensed appraiser... the lender certainly is amiss here I would think.

Where I am right now is trying to figure out the chain of liability. The company through which the "appraiser" went through isn't sure if they would be directly liable to me or the lender. They actually seem to be willing to work with me. The lender has its head up its *** though and doesn't understand anything about appraisals. The guy, in fact, sounded like he was hopped up on cocaine when talking to me. Nervous, interruptive, couldn't hold a focus on the topic. I'm fine with a mortgage adjustment, but may have to pursue a full recision under fraud laws due to the lender being generally grossly incompetent in grasping the situation.

 

[DWiley]

You refer to a lender. A key point would be, was the loan a real property loan or a personal property loan?

If you have a personal property loan and a personal property appraisal, then there would be no requirement for the appraiser to hold a real estate appraisal credential. And, if it is personal property, the fact that the appraiser holds no state-issues credential would not be a basis for asserting that it is not an appraisal report or that it cannot be reviewed.

It is also possible that a personal property appraisal was (inappropriately) used as the basis for establishing the collateral for a real property loan.

For expertise in personal property appraisal, I would refer you to the American Society of Appraisers, as they do offer training and credentialing for personal property appraisers.

 

[LostInClifton]

You refer to a lender. A key point would be, was the loan a real property loan or a personal property loan?

If you have a personal property loan and a personal property appraisal, then there would be no requirement for the appraiser to hold a real estate appraisal credential. And, if it is personal property, the fact that the appraiser holds no state-issues credential would not be a basis for asserting that it is not an appraisal report or that it cannot be reviewed.

It is also possible that a personal property appraisal was (inappropriately) used as the basis for establishing the collateral for a real property loan.

For expertise in personal property appraisal, I would refer you to the American Society of Appraisers, as they do offer training and credentialing for personal property appraisers.

As my post showed, I am well aware the appraiser doesn't need a license. But even so, Appraisers for Mobile Homes, license or not, are REQUIRED to adhere to USPAP standards. There is no wiggle room there. The reason why it couldn't be reviewed is that there's no adherence to the actual USPAP requirements or guidelines. I can get a third opinion on the matter, however, I doubt that opinion would change much.

 

[DWiley]

But even so, Appraisers for Mobile Homes, license or not, are REQUIRED to adhere to USPAP standards. There is no wiggle room there.

I am not sure of the basis for that assertion. Compliance with USPAP is not an automatic requirement. An appraiser must comply with USPAP when compliance is required by law, regulation or agreement. That is true for all appraisers, whether they appraise real property, personal property or intangible property.

From USPAP:



Many personal property appraisals do not follow USPAP because the appraiser was not required to and did not agree to.
Does the report say that it was done in compliance with USPAP?