Gpar Or URAR 1004

[bnmappraisal]

I received an email yesterday from a private party regarding a private appraisal. Long story short, they say they need a private appraisal as this is not a "typical loan." Here is part of the email:

"I am getting a 0% interest loan through the county so it is not a typical loan. They go by the tax records for our property value but that value is showing SO low and I don't think accurate for my home or the area. I did call the counties office that does this and they said I was correct as its not very accurate. The city said since that is the case the only other way would be to get an appraisal on my own and submit that. Its a rehab loan so not really though a bank, the funds are at the City of (omitted for privacy)"

I feel comfortable taking the assignment. Seems fairly straight forward; AS IS, etc. But going back and forth regarding the "form" to use. Leaning toward GPAR, which I use for all private/non lending assignments, but am sort of torn as this has some sort of lending "element" to it.
Thoughts? Thanks in advance

 

[Terrel L. Shields]

You have some obligation to inform the client that the report cannot be used by the lender. The lender must select the appraiser, not the borrower. Therefore, do it on the GPAR and do inform the client they cannot use it as a substitute for the lender's appraisal

 

[bnmappraisal]

I did tell the potential client (actual assignment hasn't officially been ordered yet):

"...My question for you, though, is are you looking for an appraisal for financing purposes or just to see what your house is worth?
It doesn't change the value of your house, but banks may not take a private appraisal done and may want their own."

 

[bnmappraisal]

So would you recommend having the "borrower" ask the "lender" (in this case the county I believe it is, maybe a local city...again, still trying to figure out specifics) to engage my service?

 

[Randolph Kinney]

You have the same situation where the bank tells the borrower to engage the appraiser for PMI removal. It can be done on the GPAR because your client is the homeowner. You can make the bank an intended user.

 

[Mark K]

You have some obligation to inform the client that the report cannot be used by the lender. The lender must select the appraiser, not the borrower.

Since this appears to be a non-FRT, are your certain this regulation is in play? I don't know but would think not.

I'd use the GPAR. The county is probably familiar with them due to their use for property tax appeals.

 

[Terrel L. Shields]

I think is should be SOP to inform a private party that they cannot use the appraisal with a bank. Many borrowers are unaware of that and attempt to engage the appraiser prior to applying for a loan. It is just common courtesy to let them know it cannot be used by the bank.

 

[DJBanas]

Have only done a few of these but someone on AF advised me to spell out the purpose of the appraisal and that it may not be acceptable for lending purposes in the engagement letter and have the client sign before starting the assignment.

 

[sandpiperapp]

If it's not going to Fannie or Freddie, VA, or FHA, Gpar !!!

 

[sandpiperapp]

You can use a General purpose form if it is going to a bank. Not all banks, especially the ones that portfolio thier real estate loans, require a URAR. The only time you should be using a URAR if it is going to one of the four I mentioned.