FHA - multiple parcels, multiple deeds, multiple PINs. What have you seen FHA want in

[Ken B]

Not your problem, as previously reported. Regardless, how hard is it, assuming that the two parcels are in fact under the same ownership, but with separately recorded deeds transferring that ownership to the current owner, for the owner to Quit Claim the parcels in a "single deed" back to himself?

It sounds like you are concerned about an underwriting condition, not a valuation condition. If it truly is a "problem", the owners could sign the Quit Claim Deed immediately prior to signing the Deed of Trust (or mortgage) and everything would be hunky-dory.

 

[Alan H]

Many times over the past 32 years since the examples I posted are not unusual in this area. The legal description that provides the collateral for the mortgage is described on the Deed of Trust (mortgage document in Arizona). That legal description on that single document may have one or multiple parcels, again depending on the circumstances. Another example is a subdivision developed in 1889, the lots are only 25' wide so to have a site large enough for a house people may own two to maybe ten lots. Some times they were purchased at different times so for assessment records there are separate parcels. But when they go to finance their home all the lots are described on one deed. Whether they are assessed as one parcel number or multiple parcel numbers is up to the owner and assessor's office. The owner can go into the assessor's office and request them be combined as one parcel number so they receive only one tax bill or they stay home and don't do anything, which means they receive multiple tax bills. Assessor's parcel numbers are for bookkeeping purposes only and not a legal item. One deed can cover multiple parcels, they don't have to be in one subdivision or county or state even. Same way with mortgages, there can be one legal description (lot or site) or multiple descriptions that are collateral for that specific loan.

As I mentioned before, talk to your client and research the legality of the area they want listed as collateral on the mortgage (zoning, building permits, physical & legal access, set backs, location on the site, etc, etc, etc).

Thanks, but I have NEVER experienced HUD/FHA accepting multiple deeds for a single mortgage and if you will read at a further post, as it turns out, HUD/FHA does NOT accept multiple deeds.

Per HUD/FHA, completion of the assignment per current HUD/FHA guidlines most become part of the SOW of the assignment and reporting "subject to" is a requirement under certain circumstances. This happened to be one of those circumstances. Therefore I am attempting to resolve a dispute, not accept or decline an assignment.

 

[Alan H]

Not your problem, as previously reported. Regardless, how hard is it, assuming that the two parcels are in fact under the same ownership, but with separately recorded deeds transferring that ownership to the current owner, for the owner to Quit Claim the parcels in a "single deed" back to himself?

It sounds like you are concerned about an underwriting condition, not a valuation condition. If it truly is a "problem", the owners could sign the Quit Claim Deed immediately prior to signing the Deed of Trust (or mortgage) and everything would be hunky-dory.

Whe an appraiser accepts an FHA assignment, they are agreeing to include the current HUD/FHA guidlines as part of their SOW, therefore, I beg to argue that it IS my problem.

Having prior experiences with te FHA acceptance of multiple parcel sales, I "Conditioned" the appraisal "Subject to" the joining the parcels per acceptable HUD/FHA guidelines. The lender (read broker) is arguing that they do not need to be on one deed. I stated they did and while I awaited resolution from HUD/FHA, I thought I'd see if anyone on this forum might shed some light on the topic of 2 parcels on 2 deeds being acceptable by HUD/FHA from personal experience.

I got some referrals to HUD/FHA documentation, which I already knew and I got some general comments, which were generally not any help, since they did NOT address the point in question about 2 parcels on 2 deeds being acceptable by HUD/FHA.

I have posted further on the resolution from HUD/FHA, which is what I expected.

 

[Alan H]

Whether FHA or FNMA approves a particular loan should never be the appraiser's concern. It sounds like a client assignment condition. If you are unwilling to do it, decline the work. If you accept, make sure that somewhere on the order or an email or something, you have the client's instruction in writing. Then when they later contact you because FHA tells them they can't do it that way, you get to say, "Well, I did it the way you requested. Yes, I can change it now. It will be $$$".

Whether FHA approves the loan is not my concern, however when an appraiser signs on with the HUD/FHA Roster, they agree to include current HUD/FHA guidlines as part of their defacto SOW of every FHA appraisal they do.

This is a situation where I "Conditioned" the appraisal "Subject To the joining of the parcels as a single, legal, marketable entity" and the "lender" is saying its fine with 2 seperate deeds and requesting that I remove the existing "Condition". I am saying the "Condition" has not yet been met and I was looking to see if anyone on this forum had any similar FHA experience. Obviously no one did.

I contacted HUD/FHA and have posted the resolution in another post on this thread.

 

[Mr Rex]

FHA will not be accepting a property on 2 deeds, it will be transferred on one deed, which will be the subject of the FHA insured loan. Methinks the Appraisal God phenomena is at full bore on steroids here.

 

[CANative]

What if the amount of land area represents excess land?

Describe but do not value?

 

[Alan H]

FHA will not be accepting a property on 2 deeds, it will be transferred on one deed, which will be the subject of the FHA insured loan. Methinks the Appraisal God phenomena is at full bore on steroids here.

Per FHA HOC, the transferring the 2 parcels onto one deed must take place before I report the "Condition" as satisfied.

As far as your "Methinks" remark. I simply started out trying to find out if anyone on this forum had any real life experience with the issue under question that they might share with me. Obviously the answer was no.

 

[Alan H]

What if the amount of land area represents excess land?

Describe but do not value?

I've done this before when one parcel was vacant land, but in this case, one parcel has a residence, one has a garage. Combined they are well within the low and high ends of site size range for the market. Not really 'vacant', excess land.

This is strictly an issue due to HUD/FHA requirements and I got a HUD/FHA response this morning - its in an earlier post .

Thanks though.

 

[Ken B]

One more try...

What you are describing (single ownership, single deed) is a title issue. It is not a valuation issue. The title issue can be resolved at closing by the owner granting a Quit Claim deed to himself with both parcels included in the Quit Claim deed.

Let's say there are two adjacent parcels, each under separate ownership. Let's say one of those parcels is improved with a residence and the other is not buildable. Let's say one person wishes to purchase both parcels, for whatever reason. For fun and games, let's say the purchaser wants to expand the existing improvements, but due to setback requirements, can't unless he purchases the adjacent vacant parcel.

Does it make sense that the appraiser of that property would require the purchaser to somehow convince the sellers to deed the property to him so that he could record a single deed depicting both parcels under his ownership BEFORE an FHA appraisal could be performed?

This is a title issue. It is not a valuation issue.

 

[CANative]

I've done this before when one parcel was vacant land, but in this case, one parcel has a residence, one has a garage. Combined they are well within the low and high ends of site size range for the market. Not really 'vacant', excess land.

This is strictly an issue due to HUD/FHA requirements and I got a HUD/FHA response this morning - its in an earlier post .

Thanks though.

You're welcome. Buy my response was more for Rex.