FHA Excess Land, Which site size in the grid

[ZZGAMAZZ]

No offense but at your age you are a Prime target for opportunist women and the Ornamentals
as Billy called them . They prey on old White Men - Many are Evil and will drain you emotionally, financially and some may even murder you.

Think with your Big Head not the small one. Too bad Uncle Billy was dead as he was a expert on how to get rolled by young hot Asian women and he died broke living in my back bedroom. Myself and Pops warned him when he was about 65 years old to wise up- but he did not and the last one cleaned his clock good and it was over.

Really interesting development: I had contacted my healthcare provider "help line" last week when I was angsting really bad about the scenario, mostly the ambiguity of not being able to tell which aspects of the SB's personality were sincere, and which were business related--until her email arrived adivising me that for $1000 she would unblock me--a factor that hurt for about 30 seconds but then quickly put everything into perspective. POINT IS: Because I contacted them in need, the Behavioral Health dept contacted me today that like-it-or-not they are in the process of filing felony charges against her, with Elder Abuse enhancements, REGARDLESS of whether I willingly gave her every penny in my pocket, regardless of whether she asked for it or not, based upon a Cali penal code item that makes it illegal to obtain money from another person "under false pretenses," exacerbated by, yep, my age! Now I wonder if someday she will be across a courtroom from me in her cute orange jumpsuit with the $900 hair extensions I paid for!!!! You gotta admit that the scenario fits perfectly into the "Revenge Stage" of recovering from a trauma. I would prefer Compensation rather than jailtime, although if it must be the latter, I am hoping for conjugal visits !!!!!!!!!!! [and you asked me two weeks if something was on my miind and troubling me!!!!!! ]

 

[glenn walker]

Really interesting development: I had contacted my healthcare provider "help line" last week when I was angsting really bad about the scenario, mostly the ambiguity of not being able to tell which aspects of the SB's personality were sincere, and which were business related--until her email arrived adivising me that for $1000 she would unblock me--a factor that hurt for about 30 seconds but then quickly put everything into perspective. POINT IS: Because I contacted them in need, the Behavioral Health dept contacted me today that like-it-or-not they are in the process of filing felony charges against her, with Elder Abuse enhancements, REGARDLESS of whether I willingly gave her every penny in my pocket, regardless of whether she asked for it or not, based upon a Cali penal code item that makes it illegal to obtain money from another person "under false pretenses," exacerbated by, yep, my age! Now I wonder if someday she will be across a courtroom from me in her cute orange jumpsuit with the $900 hair extensions I paid for!!!! You gotta admit that the scenario fits perfectly into the "Revenge Stage" of recovering from a trauma. I would prefer Compensation rather than jailtime, although if it must be the latter, I am hoping for conjugal visits !!!!!!!!!!! [and you asked me two weeks if something was on my miind and troubling me!!!!!! ]

Snitches tend to not live long lifes- I would leave the State and not come back

 

[ZZGAMAZZ]

Snitches tend to not live long lifes- I would leave the State and not come back

I personally had decided not to say anything to poo poo, based upon advice that "my lawyer" gave because one never knows about the outcome, or about the possibility she might actually BE part of an Orange County human trafficing criminal organization.

Damn I am still waiting on authorities to find the 3 Vatto Loccos who kidnapped me at gunpoint from my Riverside home at noon one day about 18 months ago,, beating me for an hour with the gun while ramsacking every single inch of the unit (except my sock drawer where all East Coast OG Dago's keep their cash, at that time about $10K.) I still remember tryng to appreciate the irony of the fact that they kept asking for "the black box with the cash," kinda like in the movies when the character says truthfull "What black box? There is no black box" when there isn't one but it's hard to convince a thief that he (or she) isn't going to get what they want. I remember one of the three running out the back door carrying my huge spare change jar that must hae weighted like 30 pounds. Police found their image on a Walmart surveillance camera about 25 miles away, using a stolen credit card, but they like all the customers were wearing facemasks. Like Bruce Springsteen sang, "It's hard to be a Saint when you're just a boy, in the City."

 

[glenn walker]

I personally had decided not to say anything to poo poo, based upon advice that "my lawyer" gave because one never knows about the outcome, or about the possibility she might actually BE part of an Orange County human trafficing criminal organization.

Damn I am still waiting on authorities to find the 3 Vatto Loccos who kidnapped me at gunpoint from my Riverside home at noon one day about 18 months ago,, beating me for an hour with the gun while ramsacking every single inch of the unit (except my sock drawer where all East Coast OG Dago's keep their cash, at that time about $10K.) I still remember tryng to appreciate the irony of the fact that they kept asking for "the black box with the cash," kinda like in the movies when the character says truthfull "What black box? There is no black box" when there isn't one but it's hard to convince a thief that he (or she) isn't going to get what they want. I remember one of the three running out the back door carrying my huge spare change jar that must hae weighted like 30 pounds. Police found their image on a Walmart surveillance camera about 25 miles away, using a stolen credit card, but they like all the customers were wearing facemasks. Like Bruce Springsteen sang, "It's hard to be a Saint when you're just a boy, in the City."

Seems like you are already a target - Like I said I would get the hell out of here and be long gone. No reason to be chasing tail lights up and down freeways when your life may not be worth 2 cents and no money chasing AMC work anyway. They just found a old Italian friend of mine a few months ago in a ditch in Covina, It seems he pissed off some of the old Paisanos about 15 years ago and they never forgot and his time came

 

[Deleted member 142783]

Thanks, Interesting take Dublin Ohio "You only value to primary site using a hypothetical condition. So if using a hypothetical. I would only used the area of the primary site throughout the report"

While I agree, its such a can of worms, though. Do you change the legal as well. Does the parcel number get marked N/A or just explain that only part of the lots under the parcel are being appraised. Thoughts?

Seems clear to me…

If your report is subject to a hypothetical condition only the smaller portion is being valued, why would you use the larger size?

When using hypotheticals, the hypotheticals are shown in the grid (proposed new construction GLA, condition for fix and flip/203k loans etc)


Or the best thing 800callfha and let an appraiser on duty provide guidance

 

[Deleted member 142783]

https://www.HUD.gov/sites/dfiles/SFH/documents/2022_appraisal_policies_principles_practices.pdf

If the subject of an appraisal contains two or more legally conforming platted lots under one legal description and ownership, and the second vacant lot is capable of being divided and/or developed as a separate parcel where such a division will not result in a non-conformity in zoning regulations for the remaining improved lot, the second vacant lot is Excess Land. • The value of the second lot must be excluded from the final value conclusion of the appraisal and the Appraiser must provide a value of only the principal site and improvements under a hypothetical condition.

Send them a email. A HUD appraiser will respond. Come back here and tell us what they said.
answers@HUD.gov
For further assistance please contact the FHA Resource Center by sending an email to answers@HUD.gov, calling1-800-CALL-FHA (1-800-225-5342) from 8am to 8pm EST, or visiting our online knowledge base at www.HUD.gov/answers (24 hours / 7 days a week).

In my county a lot split takes one year and 20k. Just ain’t happening. Just because it CAN be split does not make it excess. This is only covering steps 1 and 2 of HBU

 

[J Grant]

In my county a lot split takes one year and 20k. Just ain’t happening. Just because it CAN be split does not make it excess. This is only covering steps 1 and 2 of HBU

Incorrect -The definition of excess land means it CAN be split up. The very definition of excess land, is a lot that is divisible and has the potential of being split off. It does not matter if it is economically feasible to do so at the present time.

You are correct in that if one were taking the excess land into the valuation realm, would be to analyze if it is financially feasible and probable that it be split off now,, or better to hold it.


But remember that for FHA, the excess land, the excess lot is not included in the value !! So it makes like easy .We don't have to value it and don't need to do a HBU analysis of it. We simply exclude it with an HC.
We should note of course, in our comments that the excess lot is included in the sale transaction, however as an assignment condition of FHA it is excluded from contributing to the market value opinion in the appraisal.

 

[Deleted member 142783]

Incorrect -The definition of excess land means it CAN be split up. The very definition of excess land, is a lot that is divisible and has the potential of being split off. It does not matter if it is economically feasible to do so at the present time.

You are correct in that if one were taking the excess land into the valuation realm, would be to analyze if it is financially feasible and probable that it be split off now,, or better to hold it.


But remember that for FHA, the excess land, the excess lot is not included in the value !! So it makes like easy .We don't have to value it and don't need to do a HBU analysis of it. We simply exclude it with an HC.
We should note of course, in our comments that the excess lot is included in the sale transaction, however as an assignment condition of FHA it is excluded from contributing to the market value opinion in the appraisal.

Thank you for the correction

 

[ZZGAMAZZ]

Thank you for the correction

I often wonder whether loan officers, etc., are aware of the FHA position on Excess land when they are provding loan alternatives for a potential borrower. I also still don't know whether the ideal SCA comps should be located on larger parcels that include excess land, or just to use comps similar to the subject's reportable lot area.