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FHA REO's

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Bill S

Thread Starter
Junior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Illinois
Can someone tell me what the process is in selecting an appraiser for FHA REO's. Is it like regular FHA appraisals where it is lender assigned or do you go through the Regional office to get on a list, or maybe the out sourced management company is in charge? Any help?
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Bill:

Are you asking because you intend to BUY a FHA REO, or because you are wanting to perform this type of work...?

The FHA aka HUD contracts with management companies to evaluate their repossessed properties. Most of those management companies have lists of appraisers who are on the FHA approaved roster. To get on an individual companies list you must generally apply to tht individual company.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Before doing any appraisals for a management company of FHA REO properties--find and print out two Mortgagee Letters that are posted at HUD.gov

Get Mortgagee Letter 00-27 and Mortgageee Letter 00-47

HUD has some very specific requirements for appraisals that are completed on their REO properties. They use that appraisal to determine the original asking price and what items they will or will not repair if it sells with FHA financing. All utilities should be on in the REO property at time of appraisal, if not there are very specific requirements and wording. The appraiser has to note whether the home is insurable or insurabel with conditions or insurable with repair escrow or uninsurable. The appraisal is also completed "as is", although you include a VC sheet describing all problems.

Contact your local HOC to see who the M & M Company is for that HOC's REOs. Then contact that M & M Company to find out which appraisal company is contracting for appraisals. For example, First Preston is in CA and the appraisal company is in VA for REOs in Arizona! But haven't heard for several months, so there might be a new company. Also other appraisal companies have the responsibility to verify that the M & M contractor is doing there job. Every one has to sign in, stating who, why and when, when going inside a FHA REO, it becomes quite a long guest list at times (and interesting).

But be sure and read both mortgagee letters very, very carefully and follow along with their requirements word for word, step by step.
 
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