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Lender Switcharoo

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Larry Davis

Freshman Member
Joined
Mar 20, 2002
I did a subject to completion per plan & specs appraisal for a lender and investor. The investor initiated the appraisal order. He bought it as a foreclosure for $280,000. After substantial upgrades, the appraisal supported a value of $470,000 with plenty of comparables in the neighborhood. Now, suddenly, I have been told that the appraisal won't work subject to completion per plans & specs because the investor will have to make the necessary repairs first. He doesn't want to do this. I told them the normal way is to do a construction permanent loan with draws. Then they said they cannot do this either and want to do an "as is" appraisal as a refinance. Now I find out that they are only putting $12,000 into the home. They want a refinance appraisal, but I have actual knowledge that they intend to immediately sell the home. I believe this implies that the home is owner occupied, although the box is checked vacant. I'm kind of getting sick and tired of this kind of routine. 8 out 10 appraisals I'm fighting some kind of pressure to ignore something.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
They are trying to pound a square peg into a round hole. He wants a Fannie/Freddie loan...... for his investment deal. Won't work, and they are trying to get you to put your livelyhood on the line. Might loose a client, but I'd stick to my guns. But then again, is this client worth keeping???

The investor needs to work with a local bank, for an in-house loan, then market it like any other spec. home.

P.S. don't forget to report the recent sales history, even as a foreclosure. ;)
 
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