Describing neighborhood characteristics

[moh malekpour]

Discrimination usually is against people, individually or class of people including race, religion, income, nationality, age, language or anything that has something to do with people. You cannot discriminate against buildings as long as you are not referring them to people, their owners or residence. When you say the subject condition is deteriorated or the physical condition of the neighborhood is deteriorated but don’t say that it is because of certain people living there, you are not discriminating. If the UW asks me why they are deteriorated, the answer is lack of maintenance.
In some cities, most homes have security bars. There is nothing wrong to say the subject and most homes in the neighborhood have security bars on their windows as long as they have quick release. Most condos in LA have security gates, most pud homes in Orange County have security gates, and other homes have security devices. Most cars have security devices. It doesn’t mean that criminals occupy the whole area. It is just the way of life. Those days that people used to leave their doors and windows open day and night is over. People are more security oriented these days.
If the subject or comps are boarded up, you say they are boarded up. If UW asked why they are boarded up, I would say because they are vacant and have been sitting there for a long time. I may also say that no body wants to buy them because there is more supply than demand or people are not interested to buy fixer upper.

 

[Smokey Bear]

Cynthia,

I sure like George's wording (but then I usually do).

Yeah, George's wording is good, as usual.

 

[DTB]

Please provide the references to the written guidelines that are of effect on this assignment, as they do not appear in the lender's policies as provided to the Appraiser at the outset of the assignment. Please note that in the report on Page 7 notice is provided that "any additional requests may represent conditions leading to a new assignment and may be subject to additional billing to recover the costs associated with addressing such conditions."


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Dear appraiser the comments and additional comps are required due to your appraisal report containing photos of the afore mentioned items. It is impossible for us to forsee these items at the time of engagement, however your unilateral decree of additional charges is unacceptable. Please address the requested conditions ASAP as closing is in x days.

If these items are not forthcoming posthaste we will have no alternative but to order another appraisal and not use yours. Thank you for your attention in this matter.

We hope to continue our working relationship but we MUST have these conditions addressed.

 

[George Hatch]

Dear appraiser the comments and additional comps are required due to your appraisal report containing photos of the afore mentioned items. It is impossible for us to forsee these items at the time of engagement, however your unilateral decree of additional charges is unacceptable. Please address the requested conditions ASAP as closing is in x days.

If these items are not forthcoming posthaste we will have no alternative but to order another appraisal and not use yours. Thank you for your attention in this matter.

We hope to continue our working relationship but we MUST have these conditions addressed.

2nd request. Please provide written references from your appraisal policy for these items. The appraiser cannot accept responsibility for adherence to an unwritten and unknowable appraisal policy. Please note that further pursuit of a clearly inconsistent and undocumented appraisal policy in this assignment could be construed as an attempt by the lender to violate the Civil Rights Act of 1865, the Equal Credit Opportunity Act and other applicable "Fair Lending" laws and regulations at both the state and federal levels. The Appraiser hereby declines to participate in any unlawful or improper activities with respect to the civil rights of the borrower.

Please also note that copies of these communications will be retained in the Appraiser's workfile and be available for future examination.

 

[Otis Key]

This is the 2nd request: We can nt close on this loan because the UW requires the appraiser to address the following in his report: UW needs explanation of abandoned cars in photos, is this negatively impacting value? Also address any " illegal" uses in the subject's market and their impact on value. Also provide 2 additional comps with bars on window similar to the subject, must be within 2 blocks and 3 months blah,blah,blah...

It just doesn't go away. Does it?

Mike, in addition to George's excellent (as always) verbiage, this also sounds like it's coming from the LO. My standard reply is "Please have the underwriter contact me directly. That way there can be no confusion about what is being said to you and relayed to me. Otherswise, I feel that my report was delivered to you in compliance with the original agreed upon terms of engagement."

After a week or two, the UW calls up and all they want is a one line explanation about the cars, of which most likely is in the purchase agreement that they will be hauled away prior to closing and they just don't "seem to have the time to read it".

 

[DTB]

And thus we continue ad infinitum, with another appraiser being unpaid for telling it like it is.

 

[Smokey Bear]

Well, at least I got paid (CAD). And my neighborhood description flew right by, but they were not happy at all about me missing their target value by $100k, and almost had a heart attack over me including a photo of rotting eaves propped up by a 2x6 board.

They're probably looking for a more cooperative appraiser as we speak.

 

[The Warrior Monk]

I typically don't get as far as asking for lender guidelines. I simply question the basis of their opinion. For example, with regard to the abandoned car issue, I would ask why they believe abandoned cars have an adverse effect on value. It immediately puts them in a defensive position, because it is clearly based on their belief/prejudice, and not a lender guideline.

 

[Dustin Lindblad]

I typically don't get as far as asking for lender guidelines. I simply question the basis of their opinion. For example, with regard to the abandoned car issue, I would ask why they believe abandoned cars have an adverse effect on value. It immediately puts them in a defensive position, because it is clearly based on their belief/prejudice, and not a lender guideline.

Well said.

 

[Smokey Bear]

Not sure I'll be going back to that neighborhood again, 2 people shot, 1 died, on that very corner yesterday, in the middle of the day. I don't need the money that much.