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Fire damage discovered during pre-foreclosure exterior/driveby.

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Don't assume interior condition based on assumptions and/or speculation. There's a good chance its not a tear down.

Not a drive-by assignment. If you can't get inside, don't do it. Period.

After interior access I still wouldn't put a value on it without credible repair estimates. There may/should be an insurance company involved; they might have repair estimates.

Last one I did like this was a PITA and I ended up charging about 3-4X normal mtg. appraisal fee. I've never worked for an AMC but I would insist on communicating directly with the lender to determine proper SOW. How much leg work do they want you to do?
 
Making the assumption that it should be demolished could be misleading. Unacceptable assignment condition if you can't inspect interior or are provided with a estimated cost of repairs. MHO
I agree, it could be misleading, just as assumption the dwelling should be retained and can be fixed for ( X $)

Therefore, I would not state the subject "should" be demolished, rather state for assignment purpose of land value appraisal, an assumption is made the subject would be demolished. IF want to CYA, say if turns out a future interior inspection shows limited damage that retaining /repairing subject is the more financially feasible for HBU, then another , separate appraisal of the property would be needed.

If appraiser is not comfortable with assignment condition, decline. The reality with foreclosure appraisals when not allowed inside is the client needs the appraisal based on ext , and an assumption of condition, since it could be months before an int inspection is allowed.
 
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I also find it strange that they initially wanted a 1004, but now all of a sudden their good with a 2055, even though you now you can get access. Then again, do you really want to enter a house where there is fire damage. Insurance companies pay much better than AMC Phone Monkey Dot Com just because of the hazard to you.

I never had access. It's pretty common on an FHA pre-foreclosure assignment the bank loses contact with the owner so they ask the appraiser to try and get a hold of the owner so one can do a full interior appraiser and if you can't then do an exterior only. It's been a long time but I think VA is the same. 3 attempts and if they refuse then do a driveby. They say to knock on the door if you feel comfortable to do so, but I've never been inclined to do that. And I'm not going full Magnum PI trying to track down next of kin so that I can get more info or access to the property.
 
FHA Pre-Foreclosure Located in a Gated Community ? Why would lender want a land appraisal, they are named as a loss payee in the fire insurance policy and after the home is foreclosed on , they will have it repaired or rebuilt. Its also probably has a HOA since its in gated community and they will require the home top be repaired or rebuilt and its rare to have any lot sales in gated communities so a land/lot appraisal would probably not be very accurate. With that being said, I would do the 2055 exterior "as is" and disclose what you see from the street, there is no way to know how extensive or minimal the fire damage is and making a guess has more liability than just saying you have no idea.
 
They are dumping the loss to FHA, no skin off their noses.
 
why all the fear and paranoia? And if you do /did your job, even if the remote chance you are "dragged into litigation", it will be dismissed. This is a simple request.
They want to know land value, and that needs a separate land appraisal.

I'm not paranoid ... well maybe a little. If it were simple, they would have just cancelled and then contacted me again once the preservation team did their thing.
 
I never had access. It's pretty common on an FHA pre-foreclosure assignment the bank loses contact with the owner so they ask the appraiser to try and get a hold of the owner so one can do a full interior appraiser and if you can't then do an exterior only. It's been a long time but I think VA is the same. 3 attempts and if they refuse then do a driveby. They say to knock on the door if you feel comfortable to do so, but I've never been inclined to do that. And I'm not going full Magnum PI trying to track down next of kin so that I can get more info or access to the property.
I used to do those - hated calling the owner ( half time phone disconnected so made it easier ) - a few times the owner did say fine, come in, other times they usually are unreachable one way or another, Document attempts to reach them, then move on to ext inspection. After awhile I stopped accepting them, because it was just too hard to try to appraise from ext - but somebody is taking the assignments -they are what they are. I would do one again but would rather not. But have to say, never heard a word back about any of them, and have done them on and off over the years, wrt to paranoid thoughts and "liability"- the problems I get are from middle class buyers or owners esp on a refinance who have tantrums if they do not "like" the value.

Knock on door, I don't think so - that is simply unsafe imo - plus if without permission set foot on property to walk on yard to door, it is trespassing ...( owner can say that at least )
 
I'm not paranoid ... well maybe a little. If it were simple, they would have just cancelled and then contacted me again once the preservation team did their thing.
You clearly are so uncomfortable with this should just decline and get it over with. A statement above shows lack of understanding client, they need the appraisal as of today eff date, BEFORE " the preservation team does their thing" Which could be months out.
 
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I'd bet that the HOA has contact info for whoever is in charge of the estate.
 
I appraised a vinyl village REO quite awhile back. When I was taking exterior photos on the back where the Zero Clearance FP was located the exterior wall was damaged fairly well. It appeared to be caused by the FP. Looked strange to me so i called a very good friend who was a High up Charlotte FP Department Employee. I sent him the photo and address. About 30 minutes later he called me back and said that was an arson attempt by the people who got foreclosed. He told me the people were pretty slick trying to make it look like a defective FP, but they were amateurs. They had built a wood fire right next to the outside wall of the FP. The Fire Department quickly determined it was arson. LOL people do desperate things sometimes.

I thought about that too. Homeowner died and the garage catches fire a couple months after her death. How? Remember there is a reverse mortgage involved and the property is no longer owner occupied. Suspicious or just coincidence? I don't know maybe.
 
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