Flooded Basement, as-is value.

[23Degrees]

They don't want CB1. They want an appraisal with no conditions. You can't do that unless you're prepared to take the responsibility for any adverse affect caused by the water in the basement or damages caused by a basement flooding going forward. At this point you don't know so you really can't make a unilateral decision to accept responsibility.

FHA is simple because the handbooks and protocols limit what you can and can't do.

Post 6 indicates he is not bound by FHA protocol in this assignment. They want the appraisal "as is". CB1 is checked. If there is a way to prepare an "as is" report and not check CB1 then I need to know for the next time I get hounded to death to change the report to "as is" from one that has CB3 or CB4 checked.

 

[CANative]

Because this is not an appraisal to approve lending in an FHA mortgage it isn't necessary to follow FHA protocol in every circumstance. At least this is what I've been told in my scope of work.

Post 6 is problematical (in my opinion).

 

[Mr Rex]

There was four feet of water in my basement last week. Today the basement is bone dry. It's been doing that since Rutherford B. Hayes was in office.

So I guess you best hope the appraiser comes by on a dry day huh?:icon_mrgreen:

 

[supertens]

That's funny I called for water to be removed from a crawl space last week. Realtor goes by and there is no water. They tell me it's fixed and go back for the final and guess what it's full of water. So the statement about going by the day before the rain is oh so true. I guess in the near future we will be required to do inspections on rainy days only.

 

[Six Flags]

I've decided not to develop my own cost to cure. I'm only gonna state what I saw and recommend professionals be hired to inspect.

The AMC tells me they are ok with this. They say since this is a close out reverse mortgage the client isn't too picky...

They still want the value to be "as-is". I'm gonna put comments that repair costs could not be determined, hidden costs may exist and the value doesn't reflect these.

I'll have to wait and see what they say about it.

 

[Mr Rex]

A vacant house, reverse mortgage, and they want an appraisal "As Is", to "close it out". :Eyecrazy:Think they might be trying to slip one by FHA?:new_smile-l:

 

[RSW]

Something does not sound quite right to me!

But, as to use an EA on an "AS IS" appraisal: Can't be done on the 2005 URAR.

 

[CANative]

The value under an EA IS "as is" as long as the assumption is true. It's just a FannieForm® protocol requiring a lender who expects to do business with Fannie to verify the validity of the assumption that makes it appear to not be "as is."

We're appraisers, not ominsicient beings from an alternate universe. If we don't know something about something that could have a negative or positive effect on our conclusions and opinions then that's the end of it.

 

[bbr711]

Similar Issue

Very much like Lenny's assignment... I've accepted an FHA assignment related to a reverse mortgage in which the lender has requested an "As-Is" value. Standing water in the basement isn't the issue, but there are others: Excessive settlement (rolling floors, slanted doorways), soft floors in bath and kitchen, worn out roof, rotted exterior siding and trim, rodent infestation, utilities not on at inspection, faulty wiring observed, etc etc. The property is a mess... I didn't know this until I inspected the place - now, I'm not sure what to do... The dwelling is also zoned R-4, has 2 kitchens, and has been used as a duplex. It does have 2 common doorways that connect the 2 sides. The lender wants this completed on the 1004 Form...

At this point, I'd like to gracefully bow out of this assignment... Any suggestions?