How far do I go?

[Robert Dunkle]

Got an assignment from an AMC to do a "pre-foreclosure drive-by" on a property about 75 miles from my office. That isn't a long ways in Oklahoma and I've done several reports in the area. Anyway, they want a sales history because they are worried about flips or fraud. Sales history...no problem, they purchased vacant land 3 years ago and built. I check CH for size and see it is 3000 sf with a 1440 sf detached garage. Check for comps, almost nothing that large in the area has sold. Get down to the property and it is a 40 X 110 metal barn, with no detached garage. There is an open space where the front door should be and no one around. I go to the front door..oops...where the front door should be and see that there is nothing inside and also there is a "skylight" several inches wide by 110 feet long where the ridge cap should be. It has a slab and is plumbed for what could be house usage. I have no idea how much the lender paid out on this or if another appraiser supposedly inspected for the payouts.

My question... since this was a driveby, do I give the client only info that I could have seen from the road, or do I give them the whole enchilada. I just dug up all the info I could while I was there. I didn't want to go back. If it went to court, was I trespassing? My "group" of four appraisers have three different ideas.

 

[wyecoyote]

Vacant and open I would do the same thing you did. But, from past experience on this type of thing you will get several responses from the client as well as from appraisers on this board. Probably by law standpoint you were tresspassing. One I did similar I walked around it and took several photo's from the exterior and got a real chewing from the client that stated I should only do from the road, because, I noted that the rear siding was missing. Another client similar exterior only inspection I walked around and took photo's of the outbuildings that you could not see from the road a barn and two shop's. The client was thrilled when I got the report and commented on what an excellent job I did. As to my own opinion if the property is vacant, there is no "no tresspassing" signs, and/or fencing with dogs. I will walk around the house and take an exterior photo.

Ryan

 

[xmrdfghap]

Signs are for people, fences are for cows........apparently you didn't encounter either, so the question of trespassing does not apply, at least around here, to the best of my knowledge.

As to the other question, if you observed it and you feel it is germaine to the development of your valuation opinion, you owe it to your client to report it, regardless of how the information was obtained.

 

[Dee Dee]

Tell them like it is. Who's going to sue you for tresspassing? The 'homeowner' is long gone, and obviously the lender needs to know that they were decieved. If anyone will hang for this it should be the 'appraiser' <gag> that sold this bill of goods to them in the first place.

 

[Paulette in Texas]

If the job was to give value...be it driveby or interior inspection, then you have to do everything you can to determine the correct value. USPAP does NOT require an interior inspection. We do them to cover our rear ends and because it is the best way to inform the reader of the report of what they are lending on. I don't care one twit what the client thinks. It is WHOSE license on the line if you don't inform them of what they have out there. I believe it is going down the hard road to give them what they need but it is the right way to go. I also think it is cover your toosh time. And with crap like that being lent on, your toooooosh definitely needs covering. Paulette in Tx
go w...
Rotts rule and Shih Tzu is holding on.

 

[Pamela Crowley (Florida)]

I would not worry about 'trespassing' as much as I would worry about not disclosing EVERYTHING you learned. Payments are already behind if it was order as pre-foreclosure. The lender orders these when they think the borrower might still be living there.

Shoot, I would take pictures from every angle and include them in the report.

 

[Atlanta CG]

Paulette !!! We do not DETERMINE value. Little slip-ups like that will create mass confusion with new appraisers reading this forum.
go h...

 

[Don Clark]

8)

"And the truth shall set you free". I agree with Greg, Paulette(I slip up all the time in my verbage too) and Pamela. Only an idiot would not want to know the true condition of a property, and yes, there is a multitude of idiots out there.

PS to Greg, where are you at in the Cherokee Nation? I was born in Eufaula, Oklahoma & Grandmother was 1/2 Cherokee.

Don

 

[Restrain]

More than once I have examined a vacant property and taken rear photographs when a drive-by was requested. You are the client's eyes. If you see something questionable and fail to follow up, it's your rear on the line, not the client's. So IMHO it's better to take the extra time and be careful, especially with a drive-by. After all, the costs for a malpractice claim will be far more than the piddly drive-by fee.

 

[Judy Whitehead (Florida)]

Gosh you guys are all braver than I am. I would be afraid that I would meet up with Mr. Snake or Mr. Wild Animal in a vacant open house - let alone Mr. Serial Killer and Mr. Hurt Appraisers. Especially out in the country. The least that would happen is to get fleas all over you....I know, we all have to do these sometimes, but I like to ''try'' and make sure it is secure and empty of man and beast before I go in. I take my son, the trainee - 6'4" and 240 pounds. Of course even he is no protection against beasts and guns.