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Amount needed 120-125K

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Doug Trites

Thread Starter
Junior Member
Joined
Oct 17, 2007
Professional Status
Certified Residential Appraiser
State
Michigan
Okay group, Do I just send this to the state banking or who else or leave it alone?

Recieved order from lender that has 120-125K amount needed-if do not get this amount please call Loan Officer, do not do appraisal.

Once I recieved this request and prior to being able to send out the first notice to the lender I found out the subject is an 1100 square foot home on a slab with no garage and some acerage. I called the loan officer and let him know that I had run a 5 mile radius of all sales on slabs and crawls in the last year and that there were XX number of sales within the last year with the highest sales price being 99K. I believe this stays in line with USPAP requirements. He said the owners have an appraisal from 2 years ago and the value will not be a problem, and to go ahead an do the report. (By the way, I looked at the appraisal and all comps used were full basement sales with finished basement and adjustments were 4,000 for basement and 2,000 for finished room in basement.

A week goes by and I go out to the subject home. The lady had just went and got here husbans pay and cashed it so they would have the money for the appraisal. She continues to tell me that this is almost half of there house payment and they can not afford for it not to work, but the lender had told her he was sending an appraiser out and the value was not going to be an issue.

I am now really PXXXed off and let her know that the final value is not know until the report has been completed and that the loan officer was never told anything like that from me. I told her I had run a radius search and the highest sales was only 99K and I was concerened about the final value.

I stoped the report and charged her for time and travel and told her to talk to her husband and the loan officer and if they wanted to continue to let me know and I would finish the report.

Here is the notice my office manger sent out and here is his response.

Original notice to lender:

There are two issues that need to be addressed before this report can be completed.

1. You need to send us a different appraisal request order form that DOES NOT have the verbiage “If there is any value issues please contact ------prior to completion of appraisal” or “Amount Needed – If do not get this amount please call Loan Officer, do not do appraisal” as both of these statements are a direct violation of USPAP standards, and can not be on an order form.


Response from Lender:

“We use this form for every appraisal we order and have had no issues whatsoever. I understand what you are saying but it is just so you do not go and complete and do extra work and complete an appraisal we cannot use anyway. As for the FHA number, my assistant Michelle will get it for you. If you cannot do it with those comments on there how do you suppose I could mean the same thing without saying it. How would you phrase it?”

I am looking for advise as how the goup would handle this. I am so tired of Loan Officers telling onwers, the appraisal is no problem, we will get the value we need.
:new_snipersmilie: m2:
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
Seeing how it is an FHA deal, I believe the first place to submit this would be to FHA. If you are in the mood, submit the prior appraisal to the State (if as described, how does sh*t like that get through UW).

My favorite part is when the LO states he does not want you to do "extra work"...

This is one of the "ethical" problems I wrestle with. I don't want to take hard earned money from people like this when we know the deal is beyond dead before we start, but our ethics also say we are to remain uninterested in the loan particulars...
 
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stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
You already did the extra work! You preformed a comp check in the purest sense and aren't going to be paid for it.

For the longest time I sent back orders such as yours with a stamped message on it quoting USPAP. Most lenders didn't have the foggiest notion what they were doing was wrong.

After many explanations over approximately two years I now black out any offensive language in the request not in compliance with USAP and note it in my work file. It's easier.

If they request a predetermined value, then you ethically and under USPAP cannot complete the assignment!

Simple as that....

Send the order to Pam
 

Hamlet

Elite Member
Joined
Aug 14, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
Not to be picky, but I would not have accepted this order without first discussing the verbiage issue with the LO. This is not acceptable to have in your work file and could cause you problems. I would explain to the LO that they needed to resend the request without the offensive language and a case number. As far as discussing the value, well how do I know without looking at the home? I don’t really care how confident the LO is in a two year old appraisal that I didn’t complete. Just not to get burned and not to cause the HO a trip fee. JMHO :)
 

Scott Kibler

Elite Member
Joined
Oct 7, 2003
Professional Status
Certified Residential Appraiser
State
Illinois
Next time your client starts telling about previous appraisals, estimated values and the husband's pay, plug your fingers into your ears and loudly yell LA LA LA LA LA.

You don't want to hear this stuff and you don't want to see old appraisals. It only leads to these moral conundrums that really are not your problem.

If you work in an office, have your boss field the calls and not tell you about them.
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
My favorite, the "old" appraisal.

If anyone takes my above comment wrong, I have no pity for the LO, he should get charged triple for pulling crap like this. My "pity" was for the HO who was sold a bill of goods by the LO, and I don't like to be a party to that sort of thing.
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
...
I called the loan officer and let him know that I had run a 5 mile radius of all sales on slabs and crawls in the last year and that there were XX number of sales within the last year with the highest sales price being 99K. I believe this stays in line with USPAP requirements...

I don't know what else you may have communicated other than what you included in your post, but what you have communicated pretty much adds up to being an appraisal.
 

Hamlet

Elite Member
Joined
Aug 14, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
That’s why an appraiser should send their engagement letter (minus offensive language of course) and make the LO sign it with the FHA case number before starting work on the assignment. Run comps for your file if you must, but don’t discuss the comps with the LO or visit the property. I know times are tough, believe me I KNOW, but it isn’t doing the HO any favors by charging a trip fee and you aren’t going to get any more work by ruining the relationship in that manner. An engagement letter upfront is the only way to take control of the situation and protect your interests.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
For the longest time I sent back orders such as yours with a stamped message on it quoting USPAP. Most lenders didn't have the foggiest notion what they were doing was wrong.

Would someone please post what they give/send to the lenders like the above idea that educates lenders.
 
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