2055 exterior

[Debra]

Hello

I've done 2055s with interior observation/inspections but never a true drive-by. Does anyone know what exactly is and isn't required with this? I'm assuming that I don't call the owners even though phone numbers were provided and that I'm only taking a street picture of the subject property. Is this correct and what else is required? Thanks :roll:

 

[Jo Ann Meyer Stratton]

It all depends on the scope of work you and your client work out. Some lenders want a 2055 exterior only and no information regarding ownership or a contact or any additional information is provided by the client. In that case, only go by what you can see from a public street and use information from public records or old/new MLS listings or old for sale by owner ads, etc, etc. Some lenders provide owner's phone numbers (work, home, mother in law, neighbor, etc, etc) and then you call anyone and everyone you can to get info regarding the interior and any thing else you can find. After you have either talked to someone that has been inside the property or after driving by the property and you do not think you have accurate info--call your lender and try to talk them into upgrading to at least an interior 2055. If the order stays as an exterior only, whether you have info or not, be sure and have a paragraph about extraordinary assumptions in your report. You are assuming that the interior is in similar condition to the exterior, that the home is typical of the neighborhood and what could be observable from the street, etc. I have a sample template for 2055s that I have blithely sent many appraisers, looking for constructive feedback and there might be something of interest in them for you. If you are interested, email me and I will email you my templates.

 

[Mike Garrett RAA]

Drive by and observe the exterior of the property. I take a front shot and a street scene. The form covers everything you need to say.

 

[Restrain]

Sometimes you have all the data you need (MLS, tax, interior photos from an internet listing) and sometimes you have nothing. Just completed a 2055 exterior for preforeclosure. They weren't even sure of the address. Names were different from the tax records. No legal was provided. So, took the data that they gave me, disclosed exactly what the problems were, and did the appraisal with extensive disclosures and warnings. When you're doing a drive-by, just cite your sources, your assumptions and your warnings and disclosures. That's all you can do.

 

[rtubbs]

Debra, if you are given phone numbers for the owners, don't hesitate to call them for info that you might need. Absent MLS or other data, they can provide you with room count, bedrms, baths, and other pertinent info. It's been over 1 year (might of been 2) since I attended a Streamlined Appraisal seminar sponsored jointly by AI and FNMA but they were encouraging appraisers to contact owners if they needed additional info about the property.

 

[Farm Gal]

Debra:

Check your client on that one with regards to their preferences: got my head bit off on one which was aparently a preforeclosure (clearly marked as 2nd mortgage on the order :evil: ) whom I called... and tippe dthe banks hand :?

However that said I do prefer to contact the happy homeowenr as in this area it is often the only way to clarify the confusing room count on the county record with the actuality of the numebr of finished rooms above/below grade.

As 'newbie' you also need to ba cautioned agianst beleiveing everything a HO tells you about hte condition and quality of any recent remodeling :roll: they often lie 8O

 

[Debra]

Hello

Thanks for the replies...very informative. I've always done a REO form with the 2055s before. Is this needed with the 2055 exterior or only when they ask specifically for it? :?

 

[Ross (CO)]

Debra, when you say the "REO form" do you mean the "Supplemental Real Estate Owned Repair Addendum"....the single page focused on repair items, likely costs-to-cure and/or require back-up inspections be done by professional engineers and contractors, and present values based on as-repaired conditions and over projected marketing time and exposure ? While I have done several of these REO properties since last summer I was always afforded the opportunity to see and observe the entire property. If you are doing drive-by's, and being asked to provide the SREORA form, then you might suggest that they re-consider the order and grant you access to the inside with the "full" 2055, .....and yet again, why isn't the 1004 being used ? Protect yourself with the very product you are providing, and in doing so your client and their end-user client get what they really need. Their goal may be to get more done, more-cheaply, but you do not always have to accept when increased risk comes to you. If your REO form is not the one I mentioned above, much of my post may be moot.

 

[Debra]

Hello!

Yes that's the form...no they didn't specifically ask for it. I've just always done them with the 2055s but I've always gone inside before also. You answered my question. Thanks!

 

[Frederick R. Ruffell]

Debra,
Dont forget to disclose that you are making extraordinary assumptions about the interior and other unobserved features of the property. this is a limited scope summary appraisal, with the departure rule invoked, if you are not using the cost approach and i am assuming you will consider the cost approach ( as well as the income approach) and determine if it is necessary and applicable before you eliminate it. Rember the form does not dictate the appraisal process, you do and you must follow USPAP.
Good luck