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amycrews

Thread Starter
Freshman Member
Joined
Aug 1, 2007
Professional Status
Certified Residential Appraiser
State
Florida
In October, I was contacted by a homeowner who wanted an appraisal to establish market value. He told me that I was recommended by a local bank. He informed me that he purchased the property in April of '07, and did many major renovations. He said that he just wanted to know how much the property was worth in case he decided to list it. I informed him that I could do the appraisal on either a 1004 form or a 2055 interior/exterior. I explained the difference between the 2 forms, and due to the lower fee for the 2055, he chose that report. I completed the report and mailed it to him. He promptly paid the appraisal fee.
Today I received a request from the bank that originally referred him to me. The property is under contract for a little less than the appraised value from October. When I called the homeowner to gain access to the property, he was irate at the the fact that a new report is needed. He didn't understand why I couldn't just "help the buyers out." I explained to him that the report from October was done in his name, on a 2055 form, to establish market value. The bank requires a 1004 form, in their name, for mortgage lending purposes. It must be a completely NEW assignment. He was upset, but set up the appointment. I then received a call from the angry borrower. I explained to him the reasons that the bank needs a new report, and even went so far as to get into USPAP regulations on changing names and intended users/uses on reports. He is in the legal profession, and accused me of "making up" the law. He said that basically I am just trying to scam another appraisal fee. He doesn't understand why I am charging for a new report, even though I am discounting the fee by $50. Before the call ended, he warned me that the homeowner had some choice words for me, and that I should be ready to hear them when I get there tomorrow to view the property. I contacted the lender who apparently has received the same phone calls all day that I have. She told me to continue with the report. Apparently the borrower would rather pay my discounted fee than wait 2 weeks and pay a full fee to an appraiser from out of town. Since the bank is my client, I am not allowed to discuss the new report with the homeowner. What would be the best way to handle the situation tomorrow if/when the homeowner blesses me out while I am viewing the property?
Thanks,
Amy
 

Suz-E

Senior Member
Joined
Apr 17, 2006
Professional Status
Certified Residential Appraiser
State
Illinois
What a bunch of [email protected] I'd call the client and tell them they need to find a new appraiser. Make them pay a full fee. I wouldn't take that abuse. :new_2gunsfiring_v1:
 

Randy Pippin

Sophomore Member
Joined
Dec 16, 2003
Professional Status
Certified Residential Appraiser
State
Georgia
Make up a 10 page sheet of questions for him regarding the house, when he starts following you around and complaining all of a sudden remember that you have some questions about the property that he needs to answer and give it to him. Hopefully you will be through with the inspection before he finishes answering the questions.
 

TC

Elite Member
Gold Supporting Member
Joined
Jan 31, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Ditto what Tall Girl said.


TC
 

Suz-E

Senior Member
Joined
Apr 17, 2006
Professional Status
Certified Residential Appraiser
State
Illinois
Or.

Perhaps I would make photo copies of the portion of our Bible regarding that of the "new assignment"......hmmm...not sure what would be more fun.
 

nauthead

Senior Member
Joined
Nov 26, 2004
Professional Status
Certified General Appraiser
State
Florida
First and foremost, why did you prepare an appraisal for an individual on a form designed for mortgage lending?

Secondly, if the owner becomes abusive, I would leave on the spot. If you have someone you can take with you I would suggest doing so. Set your camera on movie mode and record the entire visit. That movie might help if he claims you were unprofessional.
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Umm, it might be poetic, but it would also cause a problem for your client.

It's federal banking regulations that prohibit your client from using an appraisal report that was prepared for a different type of use and a different type of intended user. We are obligated to not render appraisal services to a mortgage lender that will cause them problems with their own regulators. You didn't solicit that bank for this assignment; they solicited you because they knew they couldn't use the other appraisal for their loan.

Tell the irate homeowner that if the attorney wants to look up and read FIRREA for content they will find the banking regulations that he is apparently unfamiliar with. Giving legal advice without being familiar with that area of law would seem to be a risky proposition.

Just for kicks you can also print out the Interagencies Memo from 10/2003 that reiterated these long standing regulations.
 
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PLCG

Member
Joined
Jul 12, 2006
Professional Status
Certified General Appraiser
State
Pennsylvania
First and foremost, why did you prepare an appraisal for an individual on a form designed for mortgage lending?

Secondly, if the owner becomes abusive, I would leave on the spot. If you have someone you can take with you I would suggest doing so. Set your camera on movie mode and record the entire visit. That movie might help if he claims you were unprofessional.

Good idea. Someone here also posted that he uses a small recorder for notes and keeps it on all the time - and he tells the homeowner that it is on. I'd do it for sure - good cya
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
...
What would be the best way to handle the situation tomorrow if/when the homeowner blesses me out while I am viewing the property?
Thanks,
Amy

Tell the owner that if the borrower's bank will accept your prior appraisal for funding the loan...go for it!

When that doesn't work, they will be greatful that you can assist anew.
 

Obsolescent

Senior Member
Joined
Jul 6, 2004
Professional Status
Certified Residential Appraiser
State
Minnesota
Sounds like the seller might have offered a free appraisal with the purchase!
 
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