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Does anybody else think this sounds like a flip?

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BigBlueGA

Thread Starter
Junior Member
Joined
Mar 13, 2002
Professional Status
Certified General Appraiser
State
Georgia
Of course as some of you know I am also a Realtor. :twisted:

I have a sale that I am the selling agent on.. it's a VERY large manufactured home that was foreclosed on. Excellent condition, but it's not on a permanent foundation. Wouldn't meet qualifications for conventional financing through the bank due to this so they are financing the sale with a construction loan for $57,000 (Sales price is $51k, plus $6k to put it on a permanent foundation) then they are converting the construction loan to conventional as soon as the foundation is permanent). The bank gets an appraiser from a ways away and I meet them out there to let them in. Older lady steps out of the car and she asks what kind of loan.. I tell her and first thing she does is looks at her assistant and proclaims "THIS LOOKS LIKE A FLIP!"... It's very obviously not, but I was a little offended.. does this sound like a flip scheme to anybody else????

:2gunfire:
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
By the way, if it was constructed after June 15, 1976 to HUD it is NOT as mobile home, it is a manufactured home!!! If constructed prior to that date it would be a mobile home.
 

BigBlueGA

Thread Starter
Junior Member
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Mar 13, 2002
Professional Status
Certified General Appraiser
State
Georgia
AH! Ok, fixed.. you always get me on that one.. :)
 

Willie

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Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
It hat this term, flip. What the heck is a flip. FHA, FNMA, & media make it seem bad. The only time is when something is done, dishonestly. I bought a lot one time for $9,000 +- from a willing seller (lending institution that relied on a tax value to set price) and sold it for $26,000 to a willing buyer. Did nothing wrong. Is that a flip?
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Some appraisers attempt to appear more knowledgable than they are, hence the "flip" comment. Sounds very straight-forward to me. Of course, foundations that are not acceptable here to FHA are perfectly acceptable for a conventional loan (pad and block). As long as she doesn't blow the appraisal through injudicious comments, who cares.

Roger
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I would guess that appraiser is not too bright and was trying to sound more important than she is. Make sure you get a copy of it and look it over very carefully. You just might have fun with this one. This sale sounds perfectly OK to me as long as the price is not inflated beyond what would be typical for a 'normal' resale of a similar property.
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
Doesn't sound like a flip from here. It appears that the increase is justified by the change in the subject.
 

BigBlueGA

Thread Starter
Junior Member
Joined
Mar 13, 2002
Professional Status
Certified General Appraiser
State
Georgia
Pam, no not inflated at all.. they are getting a steal on this place.. it's the Taj Mahal of manufactured homes.... absolutely huge.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
was trying to sound more important than she is.

Agree with the above, it does not sound like a flip to me. It is a re-sale of a foreclosure. Hey, that is how I make money on the side too, what's wrong with it? I don't do screwy financing deals, everything I do is in cash, then fix it up to sell...... that is NOT an illegal "flip".

Also think the wayyyyy away appraiser (knowing the market sooo well :roll: ) was very unprofessional with her OUT LOUD comment. 8O :roll: Comments to trainees are to be between each other in the car on the way back home :!:
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
If the same borrower is involved in both the purchase and the refinancing later; how is that a flip--legal or illegal? Or is there a buyer for the "as is" condition, who then plans to renovate, then resell? If the buyer puts up vinyl skirting with a coat of concrete on it to make it look like concrete block, then it would be an illegal flip. If the buyer has a nice, neat foundation that would be certified by an engineer that it meets HUD guidelines, and the resale price is reflective of that retrofit, then it would be a legal "flip", meaning a bonafide arms length transaction between willing, knowledgable buyer and seller.
 
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