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FHA use of foreclosures?

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pgerarde

Thread Starter
Junior Member
Joined
Mar 5, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Hey, I did an appraisal and one of the 6 comparables I used was a REO that sold in the same condition as the Subject home. I included it to show the bottom of the range and to match condition. (And of course the lender is mad that I did not give them the number they want...she actually told me that she has another appraiser that can come in at their price but of course HUD will not let them transfer the casr number...than GOD)

This lender now says that FHA will NOT allow use of foreclosure homes as comparable sales. This does not shound right to me but I can not locate a phone number to talk with the Santa Ana office and their site says it can talk a while to get an answer from them.

Do any of you know if this is the policy of FHA? Or does someone have the phone number of the Santa Ana office for the appraisers?

Thank you and God Bless,
Patti in Chino Valley, AZ
 

pgerarde

Thread Starter
Junior Member
Joined
Mar 5, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
I wanted to let you all know that I did indeed get to talk with a HUD appraiser. We are allowed to use foreclosures as comparable sales in the sales analysis grid if we feel that it is an indication of the current market. They have no problem with me including 1 or 2 do indicate what is happening (or starting to happen) in reporting the neighborhood for the Subject property.

God Bless,
Patti Gerarde
 

pgerarde

Thread Starter
Junior Member
Joined
Mar 5, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
After talking with the lender to let them know that a foreclosure could be used as a comparable sale I just received this back from the lender:


"Thanks for giving me the information. I spoke to the Santa Anna center this morning and they told me that using a forclosure comp was not neccessary and not usual practice and that if another FHA appraiser felt that they could provide additional supportive comps they would be willing to look at them.

We are in the process of contesting the appraisal with FHA. Nothing personal, but we feel the value should be at least a little higher. FHA wants to review the file and the borrower's situation. As you know, FHA looks at an entire transaction to determine its approvability, not just the appraisal. I will keep you posted and make sure that you are paid for your work. "


What does "contesting" the appraisal mean? We have been at this property and know it's condition and location problems and they are spelled out in the report. Does HUD actually get back to us or just send out another appraiser (like the one that the lender says has already said they can get this lender their number...)?

Has anyone had any experience with this proceedure?

Thanks
Patti in Chino Valley, AZ
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
Patty,

I'm sorry you did not get quicker responses, it has been sort of slow here.

I'm glad you got to talk to your HOC.

I don't know what "contested with FHA" means, either, but it sounds like FHA will either give them permission to get a second opinion or it will not. Probably nothing to do with you.

Part of their quandry is probably the question of who is going to pay for the second opinion. FHA does not like the borrower paying for two. Still nothing to do with you.

You should still get paid for your appraisal.

I'm assuming the HOC has your question and their reply to it in the file they will be reviewing for the lender's inquiry.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
When you talked to Santa Ana HOC did you provide them with the case number for that specific order? The trail of activity for that situation will be much easier to tract if the case number is included in every discussion or communication.
 
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