Fair Condition vs Poor

[Alison Swain]

Alison,

What difference does it make as to the intended use being a refi vs. an REO in this instance? OR like the Bella Collina lots, does the intended use make a difference, e.g., refi vs. foreclosure?

I don't think it makes a difference at all. I was just making an editorial comment regarding the condition.

 

[Joyce Potts]

I don't think it makes a difference at all. I was just making an editorial comment regarding the condition.

You're absolutely right. It doesn't make any difference at all. Just as it shouldn't have made any difference with the Bella Collina lots.

 

[Alison Swain]

You're absolutely right. It doesn't make any difference at all. Just as it shouldn't have made any difference with the Bella Collina lots.

Who said it did? I was always told that "the the value is the value is the value," regardless of the intended use of the report.

 

[Alison Swain]

How about just appraising "as is" and leave it at that noting the hazards etc.

In any case, I don't think it is a good idea to get into the security bars thing as you are making a recommendation that you can be liable for; I think the best way to handle it is like you did the rest of the items, recommend that a competent tradesman, local code official etc inspect and determine what needs to be done; said person to be determined at the client’s sole discretion.

In the same line of thinking, it might be good to change - by a state certified general contractor - to "by a qualified professional of the clients sole determination" then the client is responsible for who does what etc........

I have quite a bit of experience at this type of thing, from the loan funding and portfolio review standpoint and I think the above would serve you best as it applies to limiting your liability.

Hope this helps.

Frank, re: the security bars: are you saying I should just eliminate the call to remove them or provide keys?

I think I should definitely note the fire trap hazard though, shouldn't I?

 

[xmagubty]

Exactly, note that they appear to be a hazard and the a proper professional and/or code authority should be consulted as to how to remedy the hazard etc.......

 

[Alison Swain]

Hey, thanks everyone for your help (and don't be shy about continuing to comment). I'd really like to pursue REO assignments in the future, so maybe addressing these issues will be good practice.

Any of you Florida folk know of any REO appraising classes coming up?

 

[Lobo Fan]

If it is for a refi, I am sure they will ask you for a cost-to-cure to bring it up to average condition. Take the items one at a time and come up with a cost to cure. If you get in over your head, suggest they get bids and hit it with CB4. Your lender is going to be cranky no matter what you do, unless you describe it as pristine and beautiful.

Good luck and stick to your guns. You will probably lose the customer over this one.

 

[Pamela Crowley (Florida)]

Alison, pay attention to what FrankA wrote!!!!!

 

[Alison Swain]

Okay --- new wrinkle: this report was ordered as income property. The owner says she plans to put her son in there but as we all know at this point, this home is not habitable. So......how do I handle this aspect as far as doing a rent schedule and operating expense report?

 

[xmagubty]

Okay --- new wrinkle: this report was ordered as income property. The owner says she plans to put her son in there but as we all know at this point, this home is not habitable. So......how do I handle this aspect as far as doing a rent schedule and operating expense report?

You simply state that and you are done. The property can have no income if not habitable - expenses therefore are not relevant.