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Drive By Reports

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suez143

Freshman Member
Joined
Nov 15, 2007
Professional Status
Licensed Appraiser
State
New Jersey
I haven't completed a driveby in the last 3-4 years. Can someone please let me know which form to use? I was asked to use the 704 but there are several of them and they all look similar. I use ACI-if that makes any difference. I feel really DUMB. Please help! Thanks!! m2:
 

The Sheriff

Member
Joined
Mar 21, 2007
Professional Status
Certified Residential Appraiser
State
Arizona
2005 version of the 2055 is the updated version.
 

suez143

Freshman Member
Joined
Nov 15, 2007
Professional Status
Licensed Appraiser
State
New Jersey
Thank you--do you know why they would request a 704? Is there another use for it? Again, I am sorry to ask such basic questions...I have been emersed in different types of work...
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
Thank you--do you know why they would request a 704? Is there another use for it? Again, I am sorry to ask such basic questions...I have been emersed in different types of work...

Ms. Suez,

After reading both your posts I really do not comprehend why you believe anyone here can answer your questions. These are questions you should be asking your client. Not us. Why? Because it is your obligation to follow the SOW Rule. So far I personally do not see how you could have done that and be here asking these kind of questions. Obviously, you do not comprehend your client's needs and therefore cannot properly determine the needed SOW. Nor have you put together the pieces of the puzzle of SOW, Intended Use, Intended Users. Until you go back to your client and communicate with your client until you do understand all of this, and can tell us what and who these things are, there are no meaningful answers for you here.

My next concern for you is, based on your posts, there is no way you understand the very real hazards of the 03/2005 Fannie Mae 2055 preprinted SOW and required certifications of that form. Until you do, I very strongly encourage you to NOT accept an assignment that requires the use of that form.

Webbed.

P.S. The hazards of the March 2005 Fannie 2055 Drive by form are well documented in many threads on this forum. Just do a search and read up.

P.S.S. Considering you did not say what the "use" was in your first post, it makes it a bit impossible for any of us to answer if there is "another use" for a form when the requested "use" was not told to us in the first place. A "drive-by" is not a "use." At least not in our industry. You've got the cart ahead of the horse. Go back and identify / comprehend the Intended Use, all Intended Users, any other elements being requested that you need to know in order to properly determine an appropriate SOW. Do not begin to worry about "form" until after you have all that information. ... :) ... Then you won't feel dumb anymore... ;) After you tell us all of that, you'll get some great advice on forms.
 
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Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
I don't think I have ever had a request for a 704, which is an abbreviated form for 2nd mortgages. Home Equity loan requests for appraisals typically use the 2055 or a 1004. More likely, this would will be handled in-house with an AVM or a BPO.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
My next concern for you is, based on your posts, there is no way you understand the very real hazards of the 03/2005 Fannie Mae 2055

I can see the "very real hazards" in handling spent nuclear fuel rods without gloves or letting your rattlesnake collection roam free in your bedroom...but come on! We're talking about an appraisal report.
 

suez143

Freshman Member
Joined
Nov 15, 2007
Professional Status
Licensed Appraiser
State
New Jersey
Easy now.

Thanks for your help...especially you webbed feet...maybe try getting out of your bed again...on the right side.

I did try to research it. I searched 704-nothing. I searched drive by- nothing. I even tried to get into the newbie section but to no avail. So, I did try to avoid asking such dumb questions which I fully admit that they are dumb. Can you just try to be a little more pleasant? Your tone is borderline rude. If you want to help people out then help, if not then don't respond.

I am working for a Certified General Appraiser who sent me this request. Perhaps he is testing me... He doesn't do much financial work at all so maybe he is rusty too...(at least I think he is)

Thanks again fellow appraisers...
 

Michael Tipton

Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
The 704 form is no longer listed on either FNMA's or FHLMC's web sites. WF is correct in advising you to confirm which form the client is requesting.

I also have issues with the current 2055 form. I have not completed any utilizing the 2005 version of the 2055. If I cannot see the materials, quality and condition of the subject I will not rely on anyone with an interest in the subject property.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
If the job is for a lender type client, by "drive-by" they want you to complete a residential appraisal where the scope of work does not include a full inspection of the property. You're supposed to just view the property from the public street.

The problem with these forms is that you are expected to describe the areas not viewable, including their condition and base your opinion of value on those conclusions. They "suggest" you use sources such as MLS comments and public records to obtain information about areas you can't observe but preclude from using sources with an interest (like a listing agent, the property owner, etc.) The certifications also imply, and some reps from Fannie Mae have stated, that you can't make an extraordinary assumption about conditions not viewable.

I don't like or use this form either for those reasons. I will agree to report an appraisal on this form for some clients for certain reasons but they send me an engagement letter with a clearly spelled out SOW which I scan into the report. The intended use is not for making a new loan but rather for property disposition.

BTW.. the 704 is an ancient Freddie Mac form titled: Second Mortgage Property Value Analysis Report. It was last revised ibn 1986. If they're asking for that form it might mean they don't really care about forms. You might ask if you can use the old style 2055 instead.
 
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leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Thank you--do you know why they would request a 704? Is there another use for it? Again, I am sorry to ask such basic questions...I have been emersed in different types of work...

What's the Intended Use of the appraisal? If not for a loan for the secondary market, the "new" 2055 may not be appropriate.

The 704 form has deficiencies regarding what is necessary for basic compliancy with the USPAP and you would have to review it and supplement it as appropriate. Personally, use of that form would be more work than it would be worth...unless I was paid appropriately.
 
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