Asset Valuation FHA 2055s

[Alsie35]

I've got one of these orders right now, and while I have one saved from a few years back, wanted just to throw this out there to see what kind of "magic language" y'all have used in 2055 FHA reports (for internal bank purposes ie "asset valuation" aka "nonperforming asset valuation").

Just want to make sure that I am not missing something in making sure that the "FHA angle" is covered (though I don't think these reports ever go anywhere other than the bank - or am I wrong about that?) Thanks.

 

[andrew81]

I've done a few of these and they are typical as-is appraisals with no mpr requirements. No magic language needed.

 

[Mike Ault]

I've done a few of these and they are typical as-is appraisals with no mpr requirements. No magic language needed.

Sometimes those are ordered as CWOT (conveyance without title) files and there are some mandatory appraisal disclosures required with them. Clients are notoriously bad about identifying those up front and will come back and stip you for them months later. The ones that I have done were for clients with loan files precisely like yours. I got these off the FHA website years ago and assume they are still applicable –

The purpose of this appraisal is to develop the as-is Market Value, which is a Mortgagees tool for calculating the Commissioners Adjusted Fair Market Value, estimating the market value of the property described in this appraisal report, as improved, in unencumbered fee simple title of ownership.

The INTENDED USE of this appraisal is to develop the as-is Market Value, which is a Mortgagees tool for calculating the Commissioners Adjusted Fair Market Value only, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users are identified by the appraiser.

 

[andrew81]

Sometimes those are ordered as CWOT (conveyance without title) files and there are some mandatory appraisal disclosures required with them. Clients are notoriously bad about identifying those up front and will come back and stip you for them months later. The ones that I have done were for clients with loan files precisely like yours. I got these off the FHA website years ago and assume they are still applicable –

The purpose of this appraisal is to develop the as-is Market Value, which is a Mortgagees tool for calculating the Commissioners Adjusted Fair Market Value, estimating the market value of the property described in this appraisal report, as improved, in unencumbered fee simple title of ownership.

The INTENDED USE of this appraisal is to develop the as-is Market Value, which is a Mortgagees tool for calculating the Commissioners Adjusted Fair Market Value only, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users are identified by the appraiser.

You are correct. Looked at the last couple I did and on the additional comments page was this statement that was requested from the Letter of Engagement. Didn't notice any other Magic Language that I assumed the original poster was asking about. Like "cover your azz" statements of extraordinary assumptions about MPR or not inspecting the interior, etc...

"The intended use of the appraisal is to develop the as-is Market Value, which is a Mortgagee’s tool for calculating the Commissioner’s Adjusted Fair Market Value (CAFMV) (24 CFR § 203.368). The purpose of the appraisal is to close out a defaulted loan."

 

[Alsie35]

Thank you Mike, Andrew. I'm gonna go with those in the addendum. Precisely what I was looking for.

 

[TMG]

Careful when you take the subject pics. Non performing inhabitants might be armed, paranoid, and barricaded.

 

[Terrel L. Shields]

Non performing inhabitants might be armed, paranoid, and barricaded.

I saw where a renter killed the landlord when he tried to evict him.

Investigators say a tenant shot & killed his landlord in Tipton County

48-year-old Joseph “Joey” Benjamin Guy died at the scene, and investigators have not said if the tenant will be charged.

www.localmemphis.com

 

[Bobby Bucks]

For those type of FHA assignments I try to obtain a copy of the original appraisal from the client if possible. If it's a available it's usually a better data source than the tax office or MLS, however; some of the FHA reverse mortgage closeouts can be very unreliable, especially the ones that end up being C5 or C6 if you end up getting the interior assignment later. I've been amazed at some that were C3 & Q4 in the OA and 7 years later they're actually Q5 and borderline teardowns.

 

[ucbruin]

For those type of FHA assignments I try to obtain a copy of the original appraisal from the client if possible. If it's a available it's usually a better data source than the tax office or MLS, however; some of the FHA reverse mortgage closeouts can be very unreliable, especially the ones that end up being C5 or C6 if you end up getting the interior assignment later. I've been amazed at some that were C3 & Q4 in the OA and 7 years later they're actually Q5 and borderline teardowns.

"I try to obtain a copy of the original appraisal from the client if possible. If it's a available it's usually a better data source than the tax office or MLS, however..."

Sounds like your performing a hybrid appraisal....

 

[Bobby Bucks]

"I try to obtain a copy of the original appraisal from the client if possible. If it's a available it's usually a better data source than the tax office or MLS, however..."

Sounds like your performing a hybrid appraisal....

Now that was funny. I do wonder if it could be considered a retrospective hybrid in a sense because we’re relying on an interior “observation” which is several years old in most cases. Maybe'll I'll pose that question to my AMC team leader on my next assignment, she has an answer for everything.