Appraisal Musings

[bobburnitt]

Have you guys ever done "John Doe" appraisals??????

BB in Texas

 

[Tim Hicks (Texas)]

Yes, John Does for FHA. bu the trouble is they usually don't sell those homes quick enough for the lender.

 

[Larry Lyke]

I’m going to answer BB in TX first: A “John/Jane Doe” appraisal doesn’t change anything as to use of appraisal report. It still follows the chain of parties and their rights.

Ross --

First clarification is that an heir or assign is a party with the same right(s) of the first party’s interest. So, he can do what the first party could have.

Here’s my exact boilerplate, subject to modification relative to circumstances of use. Then, come back to me and ask questions if you still have any. Long spaces for doctoring it to be specific to your needs.
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"Appraisal performed for Lender -Client- HUD/FHA, intended user, listed at top of page 1 of URAR to which this same file-Addendum is attached, for said Lender -Client and its successors or assigns exclusive use for real estate evaluation and mortgage underwriting purposes. Any other use or interpretation of whatsoever kind is expressly denied. Although Borrower may come into possession of a copy of this appraisal, Borrower is not considered a Client or an intended user."
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[Larry Lyke]

I'll have to re-send it to the Forum because the Forum doesn't allow for more than one empty space between words. I'll be back in a couple of minutes.

 

[Larry Lyke]

Below is the last paragraph in my post above. The zzz's are where you doctor to suit yourself:

“Appraisal performed for Lender-Client- xxxxxxxxxx HUD/FHA, xxxxxxxxxx intended user, xxxxxxxxxx listed at top of page 1 of URAR to which this same file-Addendum is attached, for said Lender- xxxxxxxxxx Client and its successors or assigns exclusive use for real estate evaluation xxxxxxxxxx and mortgage underwriting purposes. Any other use or interpretation of whatsoever kind is expressly denied. Although xxxxxxxxxx Borrower xxxxxxxxxx may come into possession of a copy of this appraisal, xxxxxxxxxx Borrower xxxxxxxxxx is not considered a Client or an intended user.”

Good luck.

 

[Jim McGrath]

O.K., Larry, ...I have to back you up a few steps and ask you to elaborate. Your second sentence stumps me some. When you say "the reason I include this information"...you mean, the words "and/or assigns", yes ? So, what is the "information" ? Is the "information" the wording you state in your first sentence, as an additional comment inserted within some field of your report(s) ? If you do not specifically know who the heirs or assigns are then such a list could literally include anyone. What are you doing when you are then "specifically address(ing) those not so included" ? I could see a situation where we denote ABC Lending as the client and they tell us, on the order form, that a possible second user (if ABC can not satisfy the deal) would be DEF Mortgage in Anytown, USA, to whom our same report will be given to use if (or after) the first guys can not perform. At least then the "and/or assigns" is a known entity and we might never be requested to do a re-type for a client name change. That will be a bridge already crossed and a time-saver for client #1, and for us. We have no way of following the path our reports take, anyway !

The "and/or assigns" is not needed to reassign a mortgage to a new lender. Over 95% of all mortgages are reassigned from the original mortgage broker to a lender. The only reason they ask for the new name on there is because the lender would like his name on the report, but it is not required. Check out the USPAP it will show that it is allowed. That is why I quit putting it in there, and charge extra when they want it changed.

Actually, you can put "Mortgage Lender" as the client without identifying the lender, if they want, or you want.

Jim

 

[Larry Lyke]

Jim --

My comments don't saying ANYTHING about re-assigning anything!

Ross and I are talking about the assignee.

 

[Jim McGrath]

"]Jim --

My comments don't saying ANYTHING about re-assigning anything!

Ross and I are talking about the assignee.

Larry, I wasn't talking about your post. I was responding to Ross. In his post he was talking about adding and/or asigns which is in effect reassigning an appraisal report.

Jim

 

[Ross (CO)]

Gentlemen ! , (and you know who you are) ...Larry and Jim, .....you have forced my need to dive into my files box with a report from Aug. 27th of last summer. I have looked at the order received then, and the client's exact line reads as follows....."Please make appraisal out to XXXX Mortgage, Inc. its Successors and or Assigns". Exact wording, not seen in any other order in almost a year now. All my comments in this post have related to my memory of that order. Anyhow, I noted client as XXXX Mortgage, Inc. and did NOT add the extra words "... its Successors and or Assigns" and never was asked to do so it the days to follow sending report to client.

 

[Larry Lyke]

Ross --

Actually, it's just a courtesy to add "heirs and assigns," because the client nor the appraiser controls the parties' chain anyways.

Like I said, for me, I use it as a way to get to the other issue of who is an intended user and, very importantly, to exclude the parties that's aren't included.

The Borrower blurb is the goodie that is succinct enough that the borrower won't call you when they do get a copy of the appraisal and don't like what they see. Or when they might just want to ask questions about details they don't understand.

It's worked splendidly for me for the past 7 or 8 years -- no recipient questions.