Confusion with Exterior Only Appraisals....

[Sadie]

USPAP also requires that you state all assumptions and limiting conditions you relied on. How do you "indicate the probability it is in Average (or other) condition" without seeing it? You make assumptions, and those you are claiming are doing it wrong state those assumptions to the reader understands them. They don't mislead by hiding them in an unsupported "probability" statement.

In a URAR form, those assumptions and limiting conditions are pre printed/stated on the form itself. The appraiser certifies they relied on the printed assumptions with their signature. That is what some who do little,/ no mortgage work fail to understand. The URAR form is not "just a form". The form imposes certain assignment conditions. Such as we can not add an extraordinary assumption outside the HC or EA of as is or subject to check boxes.. So if an appraiser modifies the form by modifying it or adding an EA, they have violated assignment conditions

If we find an assignment condition unacceptable, turn down the assignment. Typically, a lender who orders on a URAR form will not accept appraiser using a GP form instead. But ask anyway, if anyone wants . Verbiage about probability was a suggestion responding to another poster.

We don't see the interior, regardless of verbiage or assumptions. That is an inherent risk with ext or desktop assignments. Most of which I turn down for that reason. However, some choose to do these assignments. Imo, there is less risk with a REO use or pre foreclosure use than for an origination loan. It is a business decision for each appraiser to make

The only time I have used a GPAR form for a lender was when the appraisal was used as a guarantee of a third party's loan. They were uneasy with it, but they used it.

 

[Zoe]

Back in the day I did exterior only appraisals under the extraordinary assumption that the interior was similar to the exterior, or if there were recent MLS photos within the last 1 or 2 years, that the interior condition had not changed significantly from the date of the last sale. If we don't have interior access... how do we know? Hence, the EA.

Then COVID came along and we were not allowed to make assumptions. We were supposed to rely on homeowner's photos, etc. I did not feel comfortable with that & took a hard pass. I kept doing full interiors for the last several years.

Now, with the forbearance period ending, quite a few lenders need/want pre-foreclosure exterior only appraisals. I've searched the FNMA selling guide... it only mentions desktop appraisals and the various full interior appraisal forms... the Exterior only is suspiciously missing.

Can anyone update me on what the deal is with this? I feel like I missed something. The COVID rules are now over. Can we go back to making an EA about the interior condition of a property in order to complete an exterior only?

For instance: I have an order (I haven't accepted yet) to ascertain market value, I believe it's in pre-foreclosure. The last time the property sold was in 2009. Being distressed, the owners aren't going to let me in. And the lender needs to know what it's worth. How on earth are we supposed to appraise these if we're not supposed to use Extraordinary Assumptions about the interior quality/condition?

Thanks in Advance,

Okay, don't assume it is in pre-foreclosure. You need to know that at engagement.

Keep this in mind. Foreclosure proceedings are already way down the road when they hire you. The debtor has received multiple notifications that foreclosure is on the horizon. The debtor has most likely received a notification that you are doing an appraisal on their home for foreclosure purposes. The lender will most likely ask the debtor to let you have interior access when you contact the debtor. Many times you cannot contact debtor or occupant because they won't answer calls or a knock on the door. Many times they don't have a working phone number and lender will tell you I don't have a working phone number.

Have to realize that by the time you get to the property, the debtor already knows why you are there if the property is still occupied. If the property is vacant, they don't care why you are there anyway.

But, you have to rely on the lender to tell you if the property is occupied or vacant. You can't determine that.

If the lender tells you it is occupied, you have to be real careful in not creating any signs of trespassing. If lender tells you it is vacant, tell lender you need interior access.

 

[Zoe]

I talked with VA on 2055 with no interior access. They said use 2055. I have done tons of liquidation 2055's for GSE.

Let GSE or state board challenge that. LOL

I have done tons of liquidation for GSE.

Do your dislcosures like others have recommended on intended use and user.

Caveat once again:............................. Get interior access if lender or GSE or whoever tells you it is vacant. Just wait on them to get you interior access.

 

[Zoe]

Remember VA is not a GSE. They are a rank above a GSE. HUD is same way. They are rank above a GSE. If VA or HUD tells you the property is vacant and they are your client?

Ask for interior access and if they tell you go ahead with exterior only. Then go ahead with exterior only and 2055. Put it in workfile.

 

[Zoe]

If GSE tells you do exterior only and they are client on liquidation and use 2055. Do it. Just ask client if they have interior access and vacant or occupied. Always remember intended use and user.

 

[Terez05]

This is a little confusing for me as I am newer. If a lender wants an exterior only on a manufactured home which form should we be using. I did search thru files and some of the posts are older so I want to make sure I am getting an answer for current use. Do we do a 1004 C or a 2055 exterior for an exterior only(drive by)? Thank you in advance!

 

[Sadie]

This is a little confusing for me as I am newer. If a lender wants an exterior only on a manufactured home which form should we be using. I did search thru files and some of the posts are older so I want to make sure I am getting an answer for current use. Do we do a 1004 C or a 2055 exterior for an exterior only(drive by)? Thank you in advance!

Exterior only for a MH for lending purposes is not allowed.

 

[Terez05]

Exterior only for a MH for lending purposes is not allowed.

I just looked at the engagement letter and it says intended use is other . So I am assuming that it's a pre foreclosure

 

[glenn walker]

This is a little confusing for me as I am newer. If a lender wants an exterior only on a manufactured home which form should we be using. I did search thru files and some of the posts are older so I want to make sure I am getting an answer for current use. Do we do a 1004 C or a 2055 exterior for an exterior only(drive by)? Thank you in advance!

I just looked at the engagement letter and it says intended use is other . So I am assuming that it's a pre foreclosure

Why assume anything ask them is purpose and what form can it be done on.

 

[Sadie]

I just looked at the engagement letter and it says intended use is other . So I am assuming that it's a pre foreclosure

That would probably be the case. Re read your engagement letter. It should have additional guidance.