FHA Short Sale

[pgerarde]

I have been contacted to do a FHA short sale. But the lender is requiring that I appraise the the property "as is" even though the utilities are not turned on and I can not do the inspection required by FHA. I'm not seeing how to handle this on the FHA site/book and wondered if anyone can give me some guidance for this assignment. Thank you. Patti in Port Angeles, WA

 

[residentialguy]

You can't, per FHA guidelines. Your lender has to choose...finance it himself and order whatever appraisal he wants, or use FHA and deal with FHA guidelines.

 

[pgerarde]

Well that explains why in all these years I've never had such a FHA request. You would think a large national bank would know the FHA guidelines. My problem is that I keep thinking I have missed a new update/revision somewhere along the line. Thank you for your assistance.

 

[residentialguy]

Send your lender this link
http://hudgov.prod.parature.com/lin...he-property-s-mechanical-systems-are-operable

 

[pgerarde]

I will do that. Thank you. I sure hope there are not appraisers doing FHA reports with these lender requirements.

 

[pgerarde]

Now the AMC is stating that they will not be paying me as I will not do as the lender requires. I did bring this issue to the AMC yesterday and they told me to proceed with "Subject to". After I submitted the report, now they state they will not accept the report unless I meet lender guidelines and will not be paying me. And of course I can not do as they request as it does not conform to FHA requirements. I seem to remember something about letting HUD/FHA know about these types of problems from a seminar I took long ago. But I'm not sure how to proceed. I do have the FHA case number...of course. Any information would be appreciated.

 

[TXTea]

Now the AMC is stating that they will not be paying me as I will not do as the lender requires.

Whoa this sounds like a nightmare. I want to know who this AMC is. You should report the AMC to your state board. Secondly, call the Denver HOC with the FHA case number and tell them what's going on. Then I would tell the AMC to have the lender contact the Denver HOC. Lastly, I would tell the AMC that you will sue them if they don't pay and then tell them to go f#$k themselves.

 

[timd354]

I have been contacted to do a FHA short sale. But the lender is requiring that I appraise the the property "as is" even though the utilities are not turned on and I can not do the inspection required by FHA. I'm not seeing how to handle this on the FHA site/book and wondered if anyone can give me some guidance for this assignment. Thank you. Patti in Port Angeles, WA

What is the intended use of your appraisal? Were you hired to perform an origination appraisal for the lender financing the purchase of the short sale or were you hired to perform an appraisal for the bank/servicer who is the mortgagee on the existing loan on the property?

 

[residentialguy]

Now the AMC is stating that they will not be paying me as I will not do as the lender requires. I did bring this issue to the AMC yesterday and they told me to proceed with "Subject to". After I submitted the report, now they state they will not accept the report unless I meet lender guidelines and will not be paying me. And of course I can not do as they request as it does not conform to FHA requirements. I seem to remember something about letting HUD/FHA know about these types of problems from a seminar I took long ago. But I'm not sure how to proceed. I do have the FHA case number...of course. Any information would be appreciated.

Tell them that they are pressuring the appraiser to be misleading which is an illegal act and you will report both the lender and the AMC to the Consumer Financial Protection Bureau, the ASC, the State Attorney General and all other applicable State and Federal authorities as well as to FHA

edit...and what Tex said ^

 

[residentialguy]

What is the intended use of your appraisal? Were you hired to perform an origination appraisal for the lender financing the purchase of the short sale or were you hired to perform an appraisal for the bank/servicer who is the mortgagee on the existing loan on the property?

Tim, what does it matter? It is for FHA with a FHA case number and must be done within FHA guidelines.