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HUD PROGRAM for recent purchase/resale? UNDER PHIL HOC

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ROBERT JONES

Thread Starter
Junior Member
Joined
Feb 12, 2002
Professional Status
Certified Residential Appraiser
State
New Jersey
Lat week I received an FHA order with no case number, with the instructions to appraise it as an FHA and a case number will be assigned later, as per HUD.

I called and the lender (extremely reputable and large FHA originating firm) and was told by the U/W.. Since this property was purchased in the last 12 months they want to review all documents, including appraisal, before issuing a case number.

Has anyone else had this scenario.

Bob
 

rtubbs

Junior Member
Joined
Jan 15, 2002
Bob, I got involved in one of those last year. It was a HUD foreclosure; HUD wouldn't issue a case number; wanted me to state what repairs had been made and value of those repairs-heck, I had no idea what the seller had repaired because I didn't see the property at the time of the foreclosure. It was back and forth. I did the appraisal, identified the needed repairs; seller was slow making repairs; 4 inspections and 7 months later all repairs were made; the appraisal was no good because it was older than 6 months. I finally got a case number and did another appraisal. It took about 8 months to ever get the loan closed.

Good luck
 

Doug Walters

Freshman Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Nebraska
Bob:
Ask the underwriter to give you number of the mortgagee letter with those new instructions. Back in 1995, HUD issued a mortgagee letter that permitted lenders to order appraisals prior to obtaining the FHA case number. Remember when the federal government was put on leave because there was no budget. :? Well HUD wasn't open to issue case numbers either..........but the case number was to be entered on the appraisal.

More to the point for the new century. Don't release the appraisal to the client without a case number on it. How much information you want to share is a personal choice based on your own experience in these situations. Personally, I don't talk about anything (value or VC items) unitl I have a copy of an appraisal request with the FHA case number on it for my file. Anything less may leave you sitting on a partially completed appraisal for months; only to find out that a competitor found better comparables (read higher value) and wasn't as critical with repairs or required inspections (read did not list). :wink:
Doug
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
Robert --

"New HUD Program For Flips?"

I don't understand the Subject line. Now this post series will pop up when somebody searches for "flips," but it has nothing to do with flips.

Why not ask Wayne to change it?

WAYNE HAS SPOKEN:

... SO I SUGGEST ROBERT FIX THE SUBJECT LINE TO OUR MUTUAL FUTURE BENEFIT. THANKS.

Was the loud enough?
 

Head Surfer

Administrator
Staff member
Founder
Moderator
Joined
Jan 4, 2002
Professional Status
Retired Appraiser
State
Florida

Robert --

New HUD Program For Flips?

I don't understand the Subject line. Now this post series will pop up when somebody searches for "flips," but it has nothing to do with flips.

Why not ask Wayne to change it.
Larry,

Any user can edit their OWN posts, including the subject line. Just click the edit button in YOUR post that you want to edit.
 

AC King

Sophomore Member
Joined
Jan 20, 2002
4150.2 CHG-1
APPENDIX D: COMPREHENSIVE VALUATION PACKAGE PROTOCOL
D-1 RESIDENTIAL APPRAISAL REQUIREMENTS............

File Number "Insert the FHA Case Number at the top of the right corner of the page."

You do not have an FHA assignment without the case number. This is HUD's way of preventing appraiser shopping.

It appears to me that the underwriter may be misinformed about this situation. You may complete an FHA site-visit and complete the report except for the FHA Case Number, but not submit it until receipt of the FHA Case Number assigning that particular property to a specified appraiser.

It may not be prudent to even discuss the property, its condition or the opinion of value prior to receiving the FHA Case Number. To do so may cost you a well-earned appraisal fee.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
All:
I missed this topic when posting about my delemna over a 'FHA appraisal' ordered by a non M&M client through an AMC on a vacant reposessed property...

I find it VERY interesting that in my call to HUD Tech support asking a few questions the VERY FIRST words were[quote/HUD TEch Support]"With no FHA number you may not get paid for your efforts"[/qoute]

Evidently FHA Appraisal shopping is becoming enough of an issue for tech support to know about it. Since (other than the wife) the govment is usually the last to know.

I think I shall stick to my guns and NOT do any FHA 'like' reports using VC sheets for any clients at all...

just sign me,
Suspicious of lender motivations forever!!!... Lee Ann
 

ROBERT JONES

Thread Starter
Junior Member
Joined
Feb 12, 2002
Professional Status
Certified Residential Appraiser
State
New Jersey
The subject property was purchased from HUD in August 2001, I am being told that that is why they are requesting this info. As far a mortgagee letter I have a call in to the UW.

I just recieved a similar request from another lender.

And this topic does apply to FLIPS. This would appear to be at least some attempt to monitor this type of resale, whichin some peoples eyes, would be a flip.

Bob
 

bradellis

Member
Joined
Jan 16, 2002
Robert,

Please pay close attention to the response from Doug Walters.

He is one of the most knowledgeable guys in the country about FHA lending. He SHOULD be since he has worked directly for the REAC on contract for a long time. HE is one of the folks who called you back with answers to questions to the help desk.

With all due respect to all the other fine appraisers who responded, Doug's info is essentially straight ferom the preverbial horse's mouth.

Brad Ellis, IFA, RAA
 

ROBERT JONES

Thread Starter
Junior Member
Joined
Feb 12, 2002
Professional Status
Certified Residential Appraiser
State
New Jersey
The U/W sent me a copy of the letter explaining what and why this is the case. As previously stated, the sale was a HUD REO. This letter pertains solely to this type of transaction. "Where the sale of the REO property took place within the last 12 months, mortgagees will see a message in Holds Tracking directing them to submit the following documents:

a) Copy of the HUD-1 from the REO sale
b) Copy of the new sales contract
c) "A COPY OF THE NEW APPRAISAL AND VC SHEET (THE APPRAISAL MUST BE COMPLETED EVEN THOUGH A CASE NUMBER HAS NOT BEEN ISSUED)
d) A copy of the FHA Connection case number assignment screen

HUD will evaluate these documents, and once any questions we may have are resolved, will release thenew case number.

Just thought everyone would like to know. This letter is from the Philadelphia HOC which covers DE, DC, MD, MI, PA, Mass, MA, VA, WVA, CT, NH, NJ, NY, RI, & VT dated 6/2000 #PH 00-05

Bob
 
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