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Estimated remaining ecomomic life

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Greggnvegas

Sophomore Member
Joined
May 9, 2007
Professional Status
Licensed Appraiser
State
Nevada
I did a FHA condo and the underwriter is asking for the estimated reamianing economic life. I did explain that this is a condo on the 1073 form, and why we do not address that for condos and they now say they will not fund without it and my LO is crying. Has anyone come across this before?
Thanks
 

Greggnvegas

Sophomore Member
Joined
May 9, 2007
Professional Status
Licensed Appraiser
State
Nevada
Remaining life

Thanks for the link. I did do a search and it did not come up.
Gregg
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Just click on the link
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
I did a FHA condo and the underwriter is asking for the estimated reamianing economic life. I did explain that this is a condo on the 1073 form, and why we do not address that for condos and they now say they will not fund without it and my LO is crying. Has anyone come across this before?
Thanks

The underwriter is correct: Here is the relevant section of the HUD handbook 4150.2:


[FONT=Times New Roman, serif]4-3[/FONT]
[FONT=Times New Roman, serif]4150.2[/FONT]

[FONT=Times New Roman, serif]- endanger the physical improvements[/FONT]
[FONT=Times New Roman, serif]- affect the livability of the property or its[/FONT]
[FONT=Times New Roman, serif]marketability[/FONT]
[FONT=Times New Roman, serif]- affect the health and safety of its occupants[/FONT]

[FONT=Times New Roman, serif]> If any of these conditions exist, recommend correction[/FONT]
[FONT=Times New Roman, serif]of the problem or rejection of the property and explain.[/FONT]
[FONT=Times New Roman, serif](4-2)[/FONT]

[FONT=Times New Roman, serif]For more information, see Chapter 2-2 of this Handbook.[/FONT]

[FONT=Times New Roman, serif]o The appraiser must determine if the subject property[/FONT]
[FONT=Times New Roman, serif]possesses sufficient remaining economic life to warrant a[/FONT]
[FONT=Times New Roman, serif]long-term mortgage, assuming a reasonable level of continued[/FONT]
[FONT=Times New Roman, serif]maintenance. If the property does not warrant a long-term[/FONT]
[FONT=Times New Roman, serif]mortgage it will be ineligible for FHA mortgage insurance.[/FONT]
 

Greggnvegas

Sophomore Member
Joined
May 9, 2007
Professional Status
Licensed Appraiser
State
Nevada
Ramaining life

Thanks for the reply. For whatever reason, I thought that it did not apply to condos, even though I had read the FHA handbook about it. Thanks for clearing that up.
Gregg
 

Brad Pack

Junior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
California
Thanks for the reply. For whatever reason, I thought that it did not apply to condos, even though I had read the FHA handbook about it. Thanks for clearing that up.
Gregg

FHA does NOT require the REL for a condominium.
 

NC Appraising

Senior Member
Joined
Apr 28, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
FHA Appraisal

http://videohosting-realmedia.conne.../2005/1220/wc-06410-en1-off-ss.rm?usehostname

Around 16 minutes you'll find the answer. Doug Walters, one of the authors and heads the FHA appraisal division in D.C.

A REL is required for a condo appraisal. You never know, it may have changed. Watch the video, and you make the decision.

"Use the reconciliation section for the condo appraisal" for REL. An explanation is required if under 30 yrs.
 

CURT VAN HOOSER

Senior Member
Joined
Nov 3, 2003
Professional Status
Licensed Appraiser
State
California
Remaining Economic Life____ Years. Inserted in the Reconcilliation section of the 1073.
 
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