1004D, not original appraiser

[Tom4value]

Got an order from my best client. Looks like they took over an FHA loan with a crap-ton of conditions and I got the order for the 1004D. My headline may be misleading as I know I can do it. My question is this:

I checked off 12 of the 14 items. The issue is that the roof was to be replaced and the OA noted mold in the attic and the order called for “a third party licensed inspector to sign off on the mold in the attic”. I took that to mean my inspection ended at 12 and they were to supply me with the documentation that the roof was done and a certificate from the mold inspector/contractor that the mold is gone. I asked for those 2 items.

What I got was a building permit to replace the roof and an estimate for the job. I replied that there is no proof that the roof was actually replaced and no documentation about the mold. They responded that “if the roof was replaced, then the mold was gone”. (The estimate included replacing the plywood). I told them I was just going to state in my report, “the client attests that the roof was replaced and the mold remedied “ since I am not going to attest to something I am not trained for. They said, “ok, as I have a photo of the roof”.

They then came back and said, “provide a photo of the attic to show mold is gone “. I responded with a copy of their response, stating that if the roof is replaced the mold is gone. I think they want me to attest to something I am not qualified to do. Thoughts?

 

[J Grant]

Got an order from my best client. Looks like they took over an FHA loan with a crap-ton of conditions and I got the order for the 1004D. My headline may be misleading as I know I can do it. My question is this:

I checked off 12 of the 14 items. The issue is that the roof was to be replaced and the OA noted mold in the attic and the order called for “a third party licensed inspector to sign off on the mold in the attic”. I took that to mean my inspection ended at 12 and they were to supply me with the documentation that the roof was done and a certificate from the mold inspector/contractor that the mold is gone. I asked for those 2 items.

What I got was a building permit to replace the roof and an estimate for the job. I replied that there is no proof that the roof was actually replaced and no documentation about the mold. They responded that “if the roof was replaced, then the mold was gone”. (The estimate included replacing the plywood). I told them I was just going to state in my report, “the client attests that the roof was replaced and the mold remedied “ since I am not going to attest to something I am not trained for. They said, “ok, as I have a photo of the roof”.

They then came back and said, “provide a photo of the attic to show mold is gone “. I responded with a copy of their response, stating that if the roof is replaced the mold is gone. I think they want me to attest to something I am not qualified to do. Thoughts?

This bolded part does not make sense to me. IF the OA called for a thrid party license inspector to "sign off on the mold in teh attic, ' (?) and that teh roof be replaced, and neither was done, then you should have just checked "not complete ", and noted that the roof was not replaced and the mold remediation (or inspection ) was not done.

Who are "they", and them"?

I can't understand why if those items were not done, you simply did not state they were not done. You could have stated you received a building permit but that the roof was not placed as of the X date of the 1004 D inspection. If you went out and the roof was not replaced, why are you saying, "The client attests that the roof was replaced"? Your lender client is attesting to that, how?

 

[Tom4value]

My guess, J, is that they got nothing from the previous lender…..or else they would have gotten me the documentation. That is why I will not sign off on anything I am not qualified to do.

 

[J Grant]

My guess, J, is that they got nothing from the previous lender…..or else they would have gotten me the documentation. That is why I will not sign off on anything I am not qualified to do.

I don't understand your response that you will not sign off on anything you are not qualified to do.

It sounds like, from what I understand, the day you went out, the roof was not replaced, and the mold remediation or inspection was not done.
And my question was, why did you not just check " not complete" and state the date that the work on those two items was not done? That's all you had to do. Thats all we should do.

The rest is so convoluted I can not comment other than what I already did! Sorry. Idk what answer you are looking for. I suppose you can do what you should have done the first time: state that the work, to your knowledge, is not complete and that you need a building permit, but it was not complete the day you went out there. IDik what you were trying to do, help them close or something?

 

[andrew81]

I know this doesn't answer your question. Just thought I'd share my experience.

I have completed exactly two 1004D completion reports for an assignment completed by another appraiser. The first time the repairs were not completed. Here is what I stated:

Property does not meet HUD’s Minimum Property Requirements as outlined in the FHA Single Family Policy Handbook 4000.1. See attached supplemental addendum, contractor estimates, and photographs. I was not the original appraiser and am not developing an opinion of value. I am not performing an appraisal as defined in USPAP. I suggest the client and/or intended user(s) contact the original appraiser for value opinions.

On the supplemental addendum I said this:

On 03/13/20XX I received an assignment request from AMC Name to provide a Completion Report.

Original File# 0000000000
FHA Case# 000-0000000
Subject Property - 123 Main St, City, IL
Client and Intended Users - AMC Name, Lender Name, and FHA
Intended Use - Mortgage Finance Transaction
Borrower - Jane Smith
Original Appraiser - John Smith
Effective Date of Value - 12/13/20XX
Date of Report - 12/19/20XX
Interest Appraised - Fee Simple

This Completion Report incorporates by reference the original appraisal. This option is used because the original client and intended users are involved.

I read the original appraisal report for items listed as conditions or requirements. The report was completed subject to HUD/FHA related inspections and repairs on the basis of a hypothetical condition that the repairs or alterations have been completed. Those items are listed on page 3 of the URAR and its attached photograph addenda.

On 03/15/20XX I performed a visual inspection of the subject property to determine if the conditions or requirements stated in the original appraisal have been satisfied and found them to not be completed. Property does not meet HUD’s Minimum Property Requirements as outlined in the FHA Single Family Policy Handbook 4000.1. See below for list of repairs found to be completed and/or not completed. See attached photographs.

I then copied and pasted the original repair requirements with an explanation of if the repair was completed or not. For example:

1. "Subject was built prior to 1978 and lead based paint hazards exist - peeling/chipping paint was noted on several exterior windows (including basement window trim), the sheds and exterior of garage - all defective paint must be scraped and repainted with suitable non lead based paint when outside temperature allows for proper curing (DIY Cost to cure $100 for materials)."
- Painting of the exterior windows, basement window trim, sheds, and exterior of garage is completed.

Lastly, at the bottom of the addendum I added Additional Certifications

Completion Report Additional Certifications
- This is neither an appraisal nor appraisal review assignment. I am not performing an appraisal as defined in USPAP. I have not been asked to perform a valuation service that is provided by an appraiser as a consequence of an agreement with a client. I have only agreed to perform a visual inspection of the subject property to determine if the conditions or requirements stated in the original appraisal have been satisfied.
- Additional intended user includes FHA.
- The compensation for this assignment is $zzz.
- The client is the appraisal management company AMC Name, which is acting as an authorized agent for the lender Lender Name.
- The appraisal management company's Illinois registration number is 000000000 and it expires on 12/31/20XX.
- I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
- The comments by the licensed real estate appraiser contained within this report on the condition of the property do not address "standards of practice" as defined in the Home Inspector License Act [225 ILCS 441] and 68 Ill. Adm. Code 1410 and are not to be considered a home inspection or home inspection report.

 

[Surf Cat]

"They then came back and said, “provide a photo of the attic to show mold is gone “. I responded with a copy of their response, stating that if the roof is replaced the mold is gone".

With the original appraisal being FHA, don't you have to provide the same level of due diligence for a 1004d? Head and shoulders in the attic? Being that they are your best client, give them the photo of roof sheathing.

I wouldn't certify that the roof was replaced though, not with just a permit and estimate.....No way.

 

[J Grant]

I have only done a few 1004 D for another appraisal, but I approach it the same way as if I had done the appraisal.

The work is either complete or not when we go out for the 1004 D inspection. If it is, I mark it complete, and that's it. I don't have to re-state what needed completion ( the roof, etc ). It was already in the OA, but if relevant, I will list the items.

Appraisers overcomplicate things. Have you ever heard of the saying....that anything you say can be used against you in a court of law? The more we start going into detail about the work done or making EA (??) etc. about any of it - which nobody asked us to do- or if they did, it is out of our expertise -, the more we start making statements that can trip us up or be inadvertently misleading.

 

[Tom D]

never do another's 1004d, because in your case it was not a simple couple items. and if you miss something, and i did miss the newly painted house number, you gotta go back (i didn't, not on my list given, gave it back). FHA has a very BIG stick to beat you with. and yes, whatever repairs are asked for you need a photo to prove you saw it was done. the attic photo is correct. that being said, i want a paid invoice that what work was done, estimates mean nothing. roof could cost more than estimate. it was not done, period.. now that also being said, if this client a good client of yours. i would suggest that you give back the order saying you cannot complete it as is. they don't care, find some other dope to do it. this is why i will not do someone else's 1004d, unless it's one of my regular non AMC clients. and i ask for the repair photos from the other report. when i do peeling paint outside. i do photos, but sometimes hard to remember which ones needed without looking at photos.

 

[Raven59]

never do another's 1004d,

don't you have to provide the same level of due diligence for a 1004d

Why own someone else's liability? No way on 13 and 14, too.

 

[Surf Cat]

this is why i will not do someone else's 1004d, unless it's one of my regular non AMC clients.

This is Tom's best client....

Why own someone else's liability? No way on 13 and 14, too.

Agree on 13 & 14. He took it on because it's his best client.

I believe this scenario falls into the "no good deed goes unpunished" category.