FHA Missing Garage Door

[Dirty Harry]

I do a lot of work in rural areas and don't like driving an hour to find out a property isn't going to work. Like when the owner swears it isn't a manufacture and you show up and it has wheels still on it. How do you "screen" properties for FHA qualifications over the phone with homeowners to make sure you aren't wasting your precious time and gas?

Payment at the door never wastes my precious time and gas. Appraise what you see. If the homeowner wants to lie to you, oh well. You may need to run more comps and make a 2nd trip, but at least your getting paid for it. Makes the laptop and a cell phone modem invaluable in the field.

 

[JSmith43]

As for pre-screening properties to make sure they work. That sounds like pre-determined values or results.

It is completely ethical and professional to screen properties for physical attributes as well as other factors.

Examples: Q's to the homeowner: Are you in the middle of any remodel projects?

Have you made substantial improvements since the last sale of record?

Have you received notice of nearby pending zoning changes?

Does your home need any maintenance that you have put off for now?

Zoning allows multiple family residences. The order says SFR, but the assessor data indicates a 2 unit dwelling. Is your property a SFR?

 

[Dirty Harry]

It is completely ethical and professional to screen properties for physical attributes as well as other factors.

Examples: Q's to the homeowner: Are you in the middle of any remodel projects?

Have you made substantial improvements since the last sale of record?

Have you received notice of nearby pending zoning changes?

Does your home need any maintenance that you have put off for now?

Zoning allows multiple family residences. The order says SFR, but the assessor data indicates a 2 unit dwelling. Is your property a SFR?

As long as your "pre-screening" does not involve "valuation conclusions" that make the appraisal a "go or no go".

I ask home owners lots of questions before I go out to the property. But I don't consider it, or call it "pre-screening" to make sure the property "will work". I consider it and call it "gathering data" so I can do my job with the least amount of surprises and problems.

Yes, if the client asks me to do a 1004C and I find out the subject is a manufactured home in a park and they pay space rent, I let them know. But what I tell them is, that the form they ordered the appraisal to be on is not going to work. I tell them why, and then I tell them what is the appropriate form. They make the decision on whether that is a property type they can write a loan on, not me.

 

[Wyoming]

Hi Donn. Thank you for your input. The type of "pre-screening" I am talking about has nothing to do with value. I am a strong supporter of AO 19 and would never do anything to violate it.

The following is from an FHA class I took:

"To think like an FHA appraiser, you have to understand how HUD perceives your
role. So, here's what HUD says: Underwriters bear primary responsibility for
determining eligibility; however, the appraiser is the on-site representative for the
lender and provides preliminary verification that the General Acceptability Criteria
standards have been met."

Key word is "preliminary." If I talk to (pre-screen) a borrower and they say they live next to a nuclear waste dump, then I didn't have to drive two hours to find that out. I also wouldn't feel it necessary to bill someone for that 5 minute call. However, if I make the trip, I need to get paid for that two hour drive time and $20 in gas.

also from the class,

"Your observation of the neighborhood is critical to HUD and the lender. Indeed, it ’s
important enough that you might have to stop the whole appraisal process if you
observe certain hazards and nuisances in the area. HUD ’s list of unacceptable
locations provides information for you to consider as part of the overall location
analysis. In some cases, the property will be ineligible for an FHA-insured
mortgage and you must return the unfinished appraisal to the lender."

Do you all ever return "the unfinished appraisal" to the lender?

I am considering going over the FHA checklist that was created in this forum a few weeks ago with each FHA borrower over the phone before going to the property. That is the type of pre-screening I am talking about to make sure a propety will "work" before wasting anyones time.

What are your thought on that type of pre-screening?

 

[Dirty Harry]

Hey Matt,

Hmmm.... now we are talking about a very specific type of loan (FHA).

"the appraiser is the on-site representative for the
lender and provides preliminary verification that the General Acceptability Criteria
standards have been met."

To me "on-site" means "at the subject property". But yes, if a property owner "volunteers" that they live next to a "nuclear waste dump" I wouldn't make the drive. But my main reason would be for my own health. Hopefully it would show up on the map. I can tell you I don't "pre-screen" for "nuclear waste dumps" etc. I do, most of the time take a look at the Arial photo to "see what I can see" first. Yes, I have made that phone call to the lender when the subject is zoned industrial, surrounded by industrial with no SFR's nearby.

"Your observation of the neighborhood is critical to HUD and the lender. Indeed, it ’s
important enough that you might have to stop the whole appraisal process if you
observe certain hazards and nuisances in the area. HUD ’s list of unacceptable
locations provides information for you to consider as part of the overall location
analysis. In some cases, the property will be ineligible for an FHA-insured
mortgage and you must return the unfinished appraisal to the lender."

Do you all ever return "the unfinished appraisal" to the lender?

What does that look like? Here Mr. Lender, this is my "unfinished appraisal", enjoy! ???

Nothing leaves my office unless it has been signed and proofread twice. No unfinished work gets out the door, period.

I am considering going over the FHA checklist that was created in this forum a few weeks ago with each FHA borrower over the phone before going to the property. That is the type of pre-screening I am talking about to make sure a propety will "work" before wasting anyones time

I'm not sure which check list that is, but most of them are for when you are in the field at the subject property.
My "pre-screening" / gathering data is so I can confirm the accuracy of public records on the attributes of the subject property. It's not my job to "pre-screen" properties for lenders. My job is to appraise real estate. It takes time to research the subject, neighborhood, zoning, interview the homeowner, etc. I believe that is "your time" you are wasting when you try to "pre-screen". Now if the lender wants to pay me for "pre-screening" their leads, then screen away!

Just my 2-cents.

 

[Couch Potato]

Reading is a wonderful thing

Hey Matt,

Hmmm.... now we are talking about a very specific type of loan (FHA).

The first line of post #1 reads, "Subject is 88 years old and is being used for a FHA reverse mortgage."

That is why the advice of Brad Pack (who just happens to work for HUD) to require a garage door be installed is quite definitive on the matter.

 

[Wyoming]

Thank you for your continued participation in this thread Donn. The unfinished appraisal is a mystery to me as well. I should have drilled the instructor on that during the class.

I am trying to get an idea of what kind of FHA specific data gathering other appraisers do before going to a property when doing a FHA appraisal. For Donn, it is trailer parks and industrial zoning. Anyone else have any pre-inspection data gathering they do that they would report to the lender?

 

[Farm Gal]

Brad - I don't do it often but I am going to disagree with you there...

I see nowhere where a 'garage' HAS to have a door at all - Granted that it becomes a 3 sided carport... or Pole barn depending on construction... We have lots of those in this country and no one has yet to my knowledge required the installation of a door?!?!?

How pray tell does the lack of ONE door create an 'incomplete situation' on a property feature with walls and roof? It doesn't pose a health and safety issue... It may or may not have a marketability concern (depends on your market)...

But incomplete? eh?

Some folks around this neck of the woods take em off on purpose! No hassle with broken openers or inclement weather issues just drive on in!

 

[Mr Rex]

Brad - I don't do it often but I am going to disagree with you there...

I see nowhere where a 'garage' HAS to have a door at all - Granted that it becomes a 3 sided carport... or Pole barn depending on construction... We have lots of those in this country and no one has yet to my knowledge required the installation of a door?!?!?

How pray tell does the lack of ONE door create an 'incomplete situation' on a property feature with walls and roof? It doesn't pose a health and safety issue... It may or may not have a marketability concern (depends on your market)...

But incomplete? eh?


Some folks around this neck of the woods take em off on purpose! No hassle with broken openers or inclement weather issues just drive on in!

Me too Lee Ann and FHA doesn't seem to mind if Granny gets crushed by an existing garage door:

7. Please discuss the ongoing treatment of garage door openers that don't reverse with pressure. What about the sensor beam that stops the door when something breaks down?
[FONT=Times New Roman,Times New Roman]FHA no longer requires repair of a garage door opener; however, appraisers should be mindful that local requirements may require repair.
[/FONT]

 

[Couch Potato]

I am trying to get an idea of what kind of FHA specific data gathering other appraisers do before going to a property when doing a FHA appraisal. Anyone else have any pre-inspection data gathering they do that they would report to the lender?

As soon as I get an order request I look up the property records and view a satellite image of the property. I then contact the client to quote my fee and accept the order. If I spot something that is likely to cause trouble in the property record or photo, I will discuss it with the client prior to even accepting the order. Usually such things mean more work, so I use them to justify a slightly larger than advertised fee.