Disaster inspection on a 1004D?

[Zoe]

It is when you are accepting the liability and exposure for something both you and the client are aware there is a more appropriate way. A 1004D asks for a recertification of value, or if repairs have been completed. Neither is appropriate in a disaster inspection/certification.

I agree. The wording is not right on the 1004D. The form don't fit the problem. I think you need a different form or make up your own form on your word processor.

Just do like you are doing a cover letter and say what you did and attach the photos and send it to the lender.

Put an invoice as 1st page of transmission.

 

[Carnivore]

So it really depends on what the lender client actually wants.

If you really want to get in the weeds here is an extreme example

https://staeblerappraisal.com/wp-content/uploads/50-percent-FEMA-Residential-Example-Report.pdf

 

[Zoe]

So it really depends on what the lender client actually wants.

If you really want to get in the weeds here is an extreme example

https://staeblerappraisal.com/wp-content/uploads/50-percent-FEMA-Residential-Example-Report.pdf

Their definition of value is "actual cash value" of the improvements only. (they exclude some improvements). They mentioned before the repairs had started which meant the appraiser probably had a professional estimate all or some of the repair estimates they relied on. They did reference marshall and swift somewhere.

They are not doing an appraisal with "market value" as the definition. They are doing more like an insurance adjuster would do.

I think that is totally different from the op's problem.

 

[Sadie]

If a disaster report is ordered, the client is checking to make sure their colleteral is still there, not what value it has.

 

[Zoe]

We had a fair amount of damage from Helene here in the upstate. Nothing like western NC, but significant. Anyway, I've done several Disaster Inspection reports and Catastrophic Disaster reports. Now I have a lender asking for a disaster report on a 1004D for FHA. I can't figure out why or how this would be appropriate. FWIW, it's not my appraisal and not a usual client. They are offering 200 frog skins, so I'm tempted. Any thoughts?

Curiosity killed the cat. What did you do?

You have the right to remain silent.

 

[Zoe]

I told you about that hunting dog I hunted with as a young child. He was not my dog. I can't tell you how many snakes he killed. It was many. He would sling the snake on you if you even got close.

He hated cats too. Cat or raccoon or whatever along that line stood no chance. When he went in it was 120% for the kill. I was young and could not call him off. I tried. It didn't work.

If I did the kill like a rabbit or squirrel. He was all good. He was like okay, let's keep going. I would put the game in my vest on the back and he was ready to go again. He would bring the rabbit or squirrel to me.

I always ate what I killed. I skinned it, cleaned it got meat in refrigerator quick for safety reasons. I didn't kill game for fun. The dog was a different story. He was in for the kill period.

One or two exceptions. I don't eat snake. I don't eat may creatures like gar or whatever crazy fish that happens to get on my pole. I don't eat eel. I don't eat carp.

I have caught many drum and gave them to people on a lake and said yes we want them. I said here they are. I don't eat drum. I was fishing for crappie, bass or catfish. Drum just got in my way. I knew some people on the lake. I knew they would want the drum or carp. They said yeah we want it. The bones in those fish are tough to deal with if you don't really want to deal with bones.

Buffaloe fish I love. Takes a skilled angler to clean a buffaloe fish. Bones same way. Buffaloe fish has way bigger bones than carp or drum. They eat cleaner things than drum or carp. Meat is great.

 

[sputnam]

It is when you are accepting the liability and exposure for something both you and the client are aware there is a more appropriate way. A 1004D asks for a recertification of value, or if repairs have been completed. Neither is appropriate in a disaster inspection/certification.

No. You are accepting liability and exposure for YOUR work. Not for what the Client might do with your work... or for why they want you to do something a particular way. They can ask for any danged thing they want to. You don't have to accept the assignment. If a Client insists on the 'wrong' form and you accept the assignment... you just make sure that anyone who actually reads the entirety of your report is not misled and that the report complies with USPAP.

Appraisers have to comply with USPAP. Not Lenders.

I 100% agree that the 1004D is not the best way to report a disaster inspection. But what you can do and what the optimal thing to do are not always the same.

 

[Mile High Trout]

No. You are accepting liability and exposure for YOUR work. Not for what the Client might do with your work...

Wrong. Report language and certifications matter.

Determining the SOW is the appraisers ultimate responsibility.

If the software or appraisal portal coding is not sufficient for automatic recognition of something being turned in, that's their problem not yours.

Defies logic and makes the appraiser look incompetent to put this on a 1004d.

The only partially acceptable scenario is if you completed the original appraisal, and they're using the 1004d to verify the home has not declined in value since then.

Which would also qualify as a new appraisal assignment, with requirements for another more current workfile.

Let's review the form shall we?