1007 Question

[Nathan Slaman]

Client called and said they needed a 1007 on a borrowers rental house. I had done the appraisal for this borrower on their main residence. I am not sure of the rules here. Do I have to do an appraisal on the rental property now or can I just fill out a 1007 for the rental and do I have to inspect it/ drive by or what? Appreciate your help

 

[tjcou812]

To me if its a different property than the subject I would say its a new appraisal assignment for the rental property. The homeowner had to disclose during the application process of the extra income from the rental property. Just a guess.

 

[Restrain]

They just want to know what the market rent would be. Trying to verify expenses, income to the borrower. Your decision whether the SOW requires an inspection.

 

[Webbed Feet]

To me if its a different property than the subject I would say its a new appraisal assignment for the rental property. The homeowner had to disclose during the application process of the extra income from the rental property. Just a guess.

Really? .... So the SOW calls for an opinion of value for the rental property?

You sure you don't want to go double check some definitions before you "guess?"

Webbed.

 

[tjcou812]

Dear Web,
Sorry my bad, I thought it was a rent sched. or OIS that he was going to do. I GUESS I should have read it a couple of more times before I commented.

 

[Lloyd Bonafide]

I did one just like this the other day - a rental survey on a borrowers' other property, without doing an inspection of the rental property.

The underwriter just wanted to know what the market rent was, and they wanted a 1007 by an appraiser instead of a rental agreement.

You can write up a scope of work for the 1007, state that no inspection was done, and make an extraordinary assumption that the subject is in average condition.

 

[Mike Boyd]

For a rental analysis, you compare the features and characteristics of the subject to those of the rental comps you select. I would insist on inspecting the subject in order determine what those features and characteristics are.

You do not need to do a full appraisal of the subject, just a walk through.