FHA SF purchase with Mobile home on site

[Terrel L. Shields]

Lenders underwriter

I'd let FHA's UW make the call. And yes, the value is likely to be about the cost of removal.

 

[Tom D]

Lenders underwriter said to call it "storage" and give it no value.

Do you then ask for the kitchen & bath be removed in that storage shed. That would be my workaround. Also, remove any bedroom furniture. You have to take interior photos of any storage things.

 

[BRCJR]

Has the title been surrendered? If not, it is PP no matter what the assessor calls it.

 

[sputnam]

Lenders underwriter said to call it "storage" and give it no value.

Absolutely inappropriate. Firstly, because the underwriters don't set the market or tell the appraiser how to appraise. Secondly, because if you bow to their instruction, you are no longer an appraiser.

Inspect the subject property, describe what it is, determine whether the MH is or isn't real property. If it isn't, then exclude it from your valuation. That is called a fractional appraisal or a physical segment. Don't call it something that it isn't... like 'storage'. If it is real property, then you gather relevant data and analyze its contributory value.

 

[Zoe]

If your client is FHA and lender, the insurance has to value it somehow for the lender. It is not rocket science.

I could put value on it somehow if it meets FHA standards.

Reach out. Don't be shy.

 

[Zoe]

Here is your problem. You have to put a value on it based on MV definition and FHA standards. You are fully equipped to do it.

Your bank will require insurance on the property. FHA will also.

 

[Tom D]

Don't call it something that it isn't... like 'storage'. If it is real property, then you gather relevant data and analyze its contributory value.

So what do you then call it when you take a photo of it and it's inside. No good mf housing. What is the current functional utility of the structure.

Your perception may be different than another appraisers perception. My feeling is that this manuf house sitting there is like the junk cars sitting on the front lawn. Pretty much scrap metal.

 

[RSW]

Lenders underwriter said to call it "storage" and give it no value.

That's what I recommended several posts ago. Member, it still has to meet MPRs

 

[shrubberyvaluation]

So if the market values it you would "give it" no value. Not sure how an appraiser gives value to anything.

 

[Terrel L. Shields]

If it is uninhabitable, then it is junk, not storage. If movable, I'd estimate a cost to cure and remove.