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1004D if the repairs were not completed ?

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ZZGAMAZZ

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Issue at first glance appears to be sophomoric although it poses an ethical challenge, as follows:

Assignment is a 1004D to address various issues identified as "subject to" in the original FHA inspection.

Question: Should the appraiser when scheduling the follow-up inspection advise the borrower of the reason for the inspection, and notify underwriting if the repairs have not been made, without wasting everybody's time and money, rather than make a quick $100 and another $100 as well, when the repairs have been made--although the appraiser would have no first-hand knowledge of the status of the repairs without conducting the site inspection?
 

RSW

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I always ask if the repairs have been made when I call to set up the appointment. I don't go if the answer is no.
 

CCAAMO

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What's your hesitation with confirming with the borrower, home owner or agent if the repairs are completed when you call to schedule the appointment? Its not like Santa Clause made them on on the down low.
 

ZZGAMAZZ

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What's your hesitation with confirming with the borrower, home owner or agent if the repairs are completed when you call to schedule the appointment? Its not like Santa Clause made them on on the down low.
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...simply wondering whether one should follow the letter of the assignment by conducting a site inspection, as per the assignment, per se, as an alternative to going beyond the scope of the assignment by determining prior to the site inspection whether the subject-to issues have been addressed...kinda chicken-shxxx of a slippry slope, admittedly, and yet that's why it is posted in the "Improving the Profession" Forum, where ethical-based issues are discussed.
 

CCAAMO

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There is no ethics issue as you are not disclosing any confidential information with owner, who is the one doing the repairs. Many lenders specifically require the appraiser to verify the work has been completed with the contact person (owner, agent, etc) prior to going out for the 1004D. As you known many times they say all the work requirements have been completed when only some have. So if you ask and they say all the work is completed, you should not feel any guilt for charging $100 or $150 to make the trip out to the property to find out they were not done.
 

ZZGAMAZZ

Thread Starter
Senior Member
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Jul 23, 2007
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Certified Residential Appraiser
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California
There is no ethics issue as you are not disclosing any confidential information with owner, who is the one doing the repairs. Many lenders specifically require the appraiser to verify the work has been completed with the contact person (owner, agent, etc) prior to going out for the 1004D. As you known many times they say all the work requirements have been completed when only some have. So if you ask and they say all the work is completed, you should not feel any guilt for charging $100 or $150 to make the trip out to the property to find out they were not done.
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The issue pertains to conducting the 1004D even though the repairs haven't been addressed because the Engagement does not instruct the appraiser to determine prior to the inspection whether or not the subect to issues have been addressed.
 

RSW

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Come on! You actually don't do a final inspection without verifying the repairs are completed do you?
 

CCAAMO

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California
You have to call the contact to set up the appointment so there is no reason not to verify if the repairs are completed.
I think your overthinking it. I suggest you pour yourself an adult beverage, put on some Black Crows, and forget about it.
 

J Grant

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Dec 9, 2003
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Certified Residential Appraiser
State
Florida
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The issue pertains to conducting the 1004D even though the repairs haven't been addressed because the Engagement does not instruct the appraiser to determine prior to the inspection whether or not the subect to issues have been addressed.
The appraiser asking if repairs are done confirms the assumption for lender ordering the 1004D, typically client order the 1004D when borrower or builder tells them the repairs are complete, however it is just prudent while making appointment to ask. Sometimes at site the repairs are half done or for mystery reasons not done, then take photos of what is there, send in as not complete and lender would have to order a second trip back
 

spittman le berger

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Texas
I can't tell you the number of times I have called to confirm the repairs are done (or will be done) and when I get there, they are not done. When I do "subject to" I sometimes put a disclaimer in the OA that my list of repairs is not all inclusive and that re-observation by me, another appraiser or by some other specialists may result in other and/or additional repair requirements (multiple final inspections), especially if it is for FHA which sometimes require specific minimum standards.
 
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