Disaster inspection report

[Fernando]

F, your comment reminded me of something I have been meaning to ask. Numerous posts on the AF imply that the AMC is making decisions about what is needed, although my understanding is that the AMC merely acts as a conduit between lender and appraisers. Am I wrong?

I think you're right. But I deal directly with the AMCs. And I got another Disaster Inspection today. I think the lender wants one for all the appraisals I did over the period and even after the fires are over.
Again, I don't know if borrower is paying for it.

 

[Fernando]

The order I got, I did a disaster inspection last month. Is it normal to have a 2nd disaster inspection on same property within a month?
Same form, just change date and photos. Easy peezy.

 

[Tru Red]

I'm along the Central California Coast. I have done 17 of these in the past 2 months. Some lenders want them on the actual Disaster Area Property Inspection Report. A few of the DUMBER lenders want them on the 1004D Completion Form. I'll do all I can get my hands on.

 

[Fernando]

I'm along the Central California Coast. I have done 17 of these in the past 2 months. Some lenders want them on the actual Disaster Area Property Inspection Report. A few of the DUMBER lenders want them on the 1004D Completion Form. I'll do all I can get my hands on.

I've been doing on 1004D because it's easier but lender do get an appraisal from the 1004D since appraiser is validating prices have not decreased. So may be that's their ulterior motive.

 

[Mike Ault]

I've been doing on 1004D because it's easier but lender do get an appraisal from the 1004D since appraiser is validating prices have not decreased. So may be that's their ulterior motive.

So you are checking both boxes, eh?

 

[Fernando]

There's no boxes to check for no disaster on 1004D. I didn't have any conditions in my original report.
Since I did the appraisal a month ago and I'm aware of the area hasn't dropped, I check the box that prices haven't declined especially since no fire damage. If the market was decreasing, I wouldn't use the 1004D. Right now going back 6 months ago, that's the period of sales during pandemic and we are fortunate that the pandemic hasn't hurt the prices of those areas I saw. Can't say what's going to happen in next several months.

 

[ZZGAMAZZ]

There's no boxes to check for no disaster on 1004D. Since I did the appraisal a month ago and I'm aware of the area hasn't dropped, I check the box that prices haven't declined especially since no fire damage. If the market was decreasing, I wouldn't use the 1004D. Right now going back 6 months ago, that's the period of sales during pandemic and we are fortunate that the pandemic hasn't hurt the prices of those areas I saw. Can't say what's going to happen in next several months.

---------IMO by checking either of the boxes you are performing an appraisal beyond the Scope of Work of the assignment. I would leave ALL of the 1004D boxes blank, top and bottom, beause the client doesn't want to know whether repairs have been made and/or whether the value has changed; and then submit a PDF if the XMXL creator won't accept a report with nothing checked. Describe the Scope of Work in the 1004D addendum, considering whether the "prior involvement" cert needs to be added, as well (etc, etc). It's the wrong report so you gotta do a workaround or decline the easy-peasy.

 

[Mike Ault]

.
Since I did the appraisal a month ago and I'm aware of the area hasn't dropped, I check the box that prices haven't declined

Previous poster beat me to do it however in my humble opinion If you address any aspect of value then you have performed an appraisal, not simply an inspection. Which is fine as long as you have a workfile with support for your value assertions. There is no reason for you to open yourself up for more liability than is necessary to complete the client request but if you do you should charge for an update as well since it makes the loan file more marketable for the client.

 

[Fernando]

The client doesn't know what form to use either. There's no right form to use. I understand it's a new appraisal and the fee is near $200. I'm confident of the values hasn't dropped so it's no problem to say prices haven't decline and comment on wildfires had no effect on value. All the homes I did a months ago, the lender requested a disaster inspection. I mentioned in the report there were no damages from wildfires. The wildfires were so far away, they're irrelevent. If pandemic period had declining prices, I would proceed differently.
Right now is best time to appraise since prices are not decreasing in most areas.

 

[Mike Ault]

You seem to be a nice guy and I'm sure your clients appreciate the extra effort – I just thought I would point out the extra liability and record-keeping involved for others that might be using this thread for guidance, please accept my apologies…