FHA Short Sale

[timd354]

Really? Where does it say that?

Obviously the OP's post does not say that. While that may well be the case, we definitely do not know that to be the case based on what has been stated by the OP which is why I asked the question of what the intended use of the appraisal i

Did you take my suggestion to review those FHA guidleines for PFS and CWCOT deals? The "FHA guidleines" are not the same for all assignments. Its all right in the 4000.1. You only have to look.

Oh, Do you mean that the following language straight from the 4000.1 means that some FHA appraisals are completed "as-is" no matter what the property condition is?:

(2) Appraisals
(a) Standard
The Mortgagee must obtain a standard electronically-formatted appraisal performed by an FHA Roster Appraiser pursuant to the following requirements:
- The appraisal must contain an “As-Is” FMV for the subject Property.
- A copy of the appraisal must be provided to the homeowner, sales agent, or HUD, upon request.

 

[residentialguy]

I admit, I jumped the gun. I was speaking from a FHA financing position. If this is not the case, then I was wrong in my advice. Hopefully OP will come back and clear that up.

 

[residentialguy]

It makes a huge difference...if the appraiser was hired by the existing mortgagee for the intended use of evaluating the value of the collateral in order to determine whether or not they will approve a short payoff of the mortgage, then the appraisal can and most certainly should be performed "as is" as it would not be an origination appraisal but is being utilized by the servicer for purpose of determing whether or not to accept the short payoff.. I don't know whether or not that is the intended use of the OP's appraisal, but it is a pertinent question.

Tim's question of intended use is a pertinent question and I shouldn't have jumped on him like that. I apologize Tim. I think JG was channeling through me

 

[timd354]

Tim's question of intended use is a pertinent question and I shouldn't have jumped on him like that. I apologize Tim. I think JG was channeling through me

LOL....we all are guilty of jumping the gun on internet forums on occasions...I appreciate your apology.

 

[pgerarde]

The AMC finally had someone email me with the FHA handbook page number of 567. (It would have been nice if they had directed me to this information prior to telling me that I would not be getting paid.)

"CWCOT properties are to be appraised "as is", in the condition as it exists on the effective date of the appraisal. The value to be determined is Market Value".

Thank you all for a lively discussion while I was out of the office...lol.

 

[residentialguy]

The AMC finally had someone email me with the FHA handbook page number of 567. (It would have been nice if they had directed me to this information prior to telling me that I would not be getting paid.)

Sometimes we need to be reminded as to whose responsibilities are whose. This is something that YOU should have found out in the front end. Appraisers are required to find out the intended use.

USPAP

 

[pgerarde]

It would really help if the lender had an idea on what they are doing. First the order stated it was a FHA short sale. When I asked for the contract, it was then changed to a FHA 1004 refi. Neither was correct. The only place on the order form that mentioned the"FHA Claims without conveyance" was in the Lender's name which had this as part of the company name.

Oh well, I learned something new today that I do not recall ever being addressed in any of my FHA classes which I do at least every four years. But then, I could have missed it.... Thank you all for your help.

 

[Deleted member 80407]

[QUOTE= Then I would tell the AMC to have the lender contact the Denver HOC.

Arizona HOC is Santa Anna and not Denver. Personally, I would decline the request but first I would call the HOC and supply them with the AMC's / Client requirement. Every phone call made to the HOC has a paper trail. I would inform the client that the HOC was called and there is now a paper trail on this case number.

 

[Noreen]

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.

there is such a thing as unacceptable lender requests. If the people involved are not knowledgeable, then they make these types of unacceptable demands, they are wrong, call the HOC, give them the Case #, lender and person at the lender ( the lender is responsible for the bad behavior of their third party AMC) Don't let anyone push you into anything that you know is wrong.
good luck!!

 

[DWiley]

there is such a thing as unacceptable lender requests. If the people involved are not knowledgeable, then they make these types of unacceptable demands, they are wrong, call the HOC, give them the Case #, lender and person at the lender ( the lender is responsible for the bad behavior of their third party AMC) Don't let anyone push you into anything that you know is wrong.
good luck!!

It has been indicated that the lenders name on the order included "CWCOT." Given that, the odds that the lender is asking for something "wrong" seem low.

There is nothing wrong with requesting an "as is" appraisal on CWCOT work. In fact, it is required.