Claims Without Conveyance of Title Properties

[NJ Valuator]

Assignment type is a FHA 2055 exterior only on a foreclosed FHA-insured home. I know the appraisal is "as is". Client wants to know if it meets FHA MPR's. How would I know this if it is a 2055 only?

 

[glenn walker]

You can't and I've never seen any foreclosure that met FHA MPR I think the clients confused about what kind of appraisal their ordering and your going to have to educate them...lol

 

[Sadie]

Assignment type is a FHA 2055 exterior only on a foreclosed FHA-insured home. I know the appraisal is "as is". Client wants to know if it meets FHA MPR's. How would I know this if it is a 2055 only?

What does the engagement letter say? If you have no other guidance just state yes or no on what you can see from the street. And be sure to CYA and say that an interior inspection may have a different result.

 

[Tom D]

I don't remember that on my REO drive bys. But, you can make an assumption if need be. By the way, i never appraised a pre REO drive by value as even being in real average condition. You seen enough of them, or bought them, they all have some sort of problem/s. Now sometimes the lender wants you to appraise it like it's in normal condition, but they tell you that sow. Get it in writing on the sow, or an asked condition question with their reply.

 

[sputnam]

Assignment type is a FHA 2055 exterior only on a foreclosed FHA-insured home. I know the appraisal is "as is". Client wants to know if it meets FHA MPR's. How would I know this if it is a 2055 only?

In the report say that you are unable to determine whether the property meets MPR due to the inspection being limited to observation from the public street. If they insist, use an extraordinary assumption. If that doesn't make them happy, just refuse to make the change.

 

[Sadie]

In the report say that you are unable to determine whether the property meets MPR due to the inspection being limited to observation from the public street. If they insist, use an extraordinary assumption. If that doesn't make them happy, just refuse to make the change.

Usually the client is aware of the limitations of the form. Most likely this report is not for lending purpose.

 

[Dublin ohio]

Usually the client is aware of the limitations of the form. Most likely this report is not for lending purpose.

Did you even read the op?

 

[Tom D]

I did a ton of pre foreclosures for a servicing co. How do you know that this has been foreclosed on already. At that point they have a realtor involved and want a real interior appraisal done. They don't need a drive by when they have taken it.

For a pre foreclosure:
1. they stated to put on the report, "not for lending purposes". The reason is that every year they have to post properties where value is below loan amount, as a loss on their books. And they do not like that.
2. i used the generic 2055 form with a REO addendum. since i never saw the inside of the house, what could you say about item condition, they wanted 'average'. So stated 'average', but on the low side average value range, knowing they would all be beat up when evicted. I also stated, the value could be dramatically different if not in the assumed stated report condition.
3. The 1004 is for a loan appraisal, it's stated on the form. You get in state trouble when the appraisal isn't for a loan, using the 1004.
4. i had a large data base from doing so many in the same zip codes that i could do them very fast. But just doing 1 is way more work that you will get paid for it, especially with the REO addendum added.

INTENDED USER OF THIS APPRAISAL REPORT IS THE CLIENT NOTED IN THIS REPORT. THE INTENDED USE, THAT IS THE SUBJECT OF THIS APPRAISAL, IS TO DETERMINE INTERNAL MARKET VALUE FOR CLIENT, NOT FOR LOAN ORIGINATION.

NO ADDITIONAL INTENDED USERS ARE IDENTIFIED BY THE APPRAISER. ANY OTHER PARTY RECEIVING A COPY OF THIS REPORT FOR ANY REASON IS NOT INTENDED USER; NOR DOES RECEIVING A COPY OF THIS REPORT RESULT IN AN APPRAISER-CLIENT RELATIONSHIP. USE OF THIS REPORT BY ANY OTHER PARTY(IES) IS NOT INTENDED BY THE APPRAISER.

NO INTERIOR INSPECTION WAS MADE, APPRAISER ASSUMES UTILITIES ARE ON, FUNCTIONING. NO APPARENT STRUCTURAL DEFECTS. MECHANICAL SYSTEMS ARE IN WORKING ORDER, FUNCTIONING. APPLIANCES ON, BUILT-INS & KIT CABINETS FUNCTIONING. ADEQUATE ELECTRIC SERVICE. HEAT SOURCE IS PERMANENTLY ATTACHED. THE DWELLING IS ASSUMED TO BE IN AVERAGE CONDITION WITH UTILITIES ON & FUNCTIONING. Any difference from these assumptions may negatively, or positively affect the value. This is an extraordinary assumption: an assignment-specific assumption, as of the effective date regarding uncertain information used in an analysis, which if found to be false, could alter the appraiser’s opinions or conclusions.

 

[sputnam]

Usually the client is aware of the limitations of the form. Most likely this report is not for lending purpose.

Possible. That's why you ask the Client about the Intended Use... if they weren't clear in the Letter of Engagement. If it's not for lending purposes... or even if it is but it's not for a GSE loan... the 'rules' change.