J Grant
Elite Member
- Joined
- Dec 9, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Florida
his question is not an issue because it does not apply. original onwer, Ian Smtih, owns 22 Cherry St. The mortgage on it is $250,000. In today's market, it is only worth $200,000. His bank agrees to write down the mortgage balance to $190,000, insured by FHA. In return, FHA ( gov't entity) splits the profit when Ian Smith wells the home. Three years later, Ian Smith sells the home for $230,000 and shares the profit with the gov't. The BUYER, looking to buy Ian Smith's home, will be under no such obligation to share any profit on the home with the gov't. It was a one time arrangement only, with Ian Smith , in exhange for writing down his mortgage. So, to answer the question, a buyer looking at 22 Cherry Street and another house, they both are the same, there is not future requreiemtn to share appreciation to a new buyer. For our purposes, if we get any of these assignments, we would be appraising it as a refi for Ian Smith (aka present owners who are refinancing) and no, there is no adjusmtent for terms, we are appraising the value of the house as if it were for sale to a typical buyer ( see above, typical buyer has no restrictions on house, only present owner does )
