• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

New PUD defined

Mike Ault

Junior Member
Joined
Sep 23, 2004
Professional Status
Certified Residential Appraiser
State
Texas
There's no common elements. I don't remember what I wrote about the HOA. Maybe it's an annual newsletter or maybe it once was to enforce illegal racial discrimination.
It's a small fee that it's almost irrelevent in which the market doesn't care. Again, it's a PUD.
Has anybody ever had to reclose a loan because you failed to indicate that they needed the PUD Rider? Typically the title company will catch that and the person that you are calling the reviewer is probably just a processor passing along what you should have caught. There is additional documentation that is required by all the GSE's for properties that are located in areas with HOA's. Yours is not to reason why. Areas with more stringent restrictions enforced by HOA's demonstrate enhanced marketability in normally functioning real estate markets, when that ceases to be the case then they are disbanded. I don't believe you can adequately defend your statement that those "don't affect value" in front of any type of professional conduct committee.
 
Last edited:

Fernando

Senior Member
Joined
Nov 7, 2016
Professional Status
Certified Residential Appraiser
State
California
Has anybody ever had to reclose a loan because you failed indicate that they needed the PUD Rider? Typically the title company will catch that and the person that you are calling the reviewer is probably just a processor passing along what you should have caught. There is additional documentation that is required by all the GSE's for properties that are located in areas with HOA's. Yours is not to reason why. Areas with more stringent restrictions enforced by HOA's demonstrate enhanced marketability in normally functioning real estate markets, when that ceases to be the case then they are disbanded. I don't believe you can adequately defend your statement that those "don't affect value" in front of any type of professional conduct committee.
It's been like that for decades. Some lenders notice it, some don't. Lenders probably checked with title company and found no major concern.
I just make the comment and lenders never asked me to investigate further.
 

Mike Ault

Junior Member
Joined
Sep 23, 2004
Professional Status
Certified Residential Appraiser
State
Texas
It's been like that for decades. Some lenders notice it, some don't. Lenders probably checked with title company and found no major concern.
Yes, once I figured out that you actually are a real appraiser with decades of experience I try hard not to chastise you. But some of your posts can be interpreted incorrectly by people that depend on this board for information. That is very important information that you are just blowing off and have seemingly suffered no ill consequences for. It needs to be pointed out that is not the way we are supposed to be doing things. You can brag to your buddies at the bar how you're just breezing through these assignments without knowing why you're supposed to be checking a certain box but this is a forum for professional appraisers to pass along knowledge to others and when you are passing along information like that expect to be called out for it. Please accept my sincere apologies in advance.
 

Fernando

Senior Member
Joined
Nov 7, 2016
Professional Status
Certified Residential Appraiser
State
California
Yes, once I figured out that you actually are a real appraiser with decades of experience I try hard not to chastise you. But some of your posts can be interpreted incorrectly by people that depend on this board for information. That is very important information that you are just blowing off and have seemingly suffered no ill consequences for. It needs to be pointed out that is not the way we are supposed to be doing things. You can brag to your buddies at the bar how you're just breezing through these assignments without knowing why you're supposed to be checking a certain box but this is a forum for professional appraisers to pass along knowledge to others and when you are passing along information like that expect to be called out for it. Please accept my sincere apologies in advance
Like I said, this is a "old" subdivision which looks and feels like a SFR community but has this small HOA fee. I'm not going to lose sleep over this small HOA fee.
The market doesn't care about the fee.
 
Last edited:

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
I don't really know what the $30/yr is for. The homeowner doesn't even know. It's just there and it's for "administrative expense" (whatever that is) but technically it's a PUD.
Thats what in the old days was called a "deminumus" PUD meaning -there was maybe only a common pool but no other services provided. So you need to find out what $30 covers : LMAO--How long have you been doing this ?
 

Mike Ault

Junior Member
Joined
Sep 23, 2004
Professional Status
Certified Residential Appraiser
State
Texas
The market doesn't care about the fee.
You can argue that the market doesn't care about the $30 fee but you cannot argue that the market doesn't care what that $30 fee represents. Those HOA's that you're ignoring can cause innumerable problems for the owner with their various concerns and any lender looking to exercise their foreclosure rights simply by their position in the chain of title unless the title work was done properly (I assume that you know how important the "First Lien Status" is for the lienholder). You are an integral part of the process that ensures that the ultimate investor in the loan knows the true nature of the security that they are buying. There are consequences that can arise for checking any box on the URAR without doing the associated research. I guess you could bury a disclaimer somewhere stating that you don't check any information like that in the normal course of business and see how well you sleep because now you know better.


Sorry again.
 
Last edited:

Amy Perkins

Senior Member
Joined
Jul 20, 2003
Professional Status
Certified Residential Appraiser
State
Tennessee
I am wondering if anybody has information on what Fannie Mae or HUD's definition of NEW PUD is? To clarify, I know the definition of a PUD. I am trying to get clarity on what makes a PUD new and when is it not new. Thanks!
I see a lot of situations in Nashville where it is an older house, and several other units are renovated and placed in a PUD, the PUD is new, old house.
 

Mike Ault

Junior Member
Joined
Sep 23, 2004
Professional Status
Certified Residential Appraiser
State
Texas
I see a lot of situations in Nashville where it is an older house, and several other units are renovated and placed in a PUD, the PUD is new, old house.
OMG, that shot a big hole in my "resales of preowned dwellings" theory didn't it. Good point!
 
Last edited:

Fernando

Senior Member
Joined
Nov 7, 2016
Professional Status
Certified Residential Appraiser
State
California
There was never a common pool. There's probably over 1,000 homes paying this insignificant fee for over 50 years. The fee doesn't change that much.
By using comps in same "PUD" area, market has considered the annual HOA fee.
Think of an utility easement. I mention the utility easement just like I mention the annual HOA fee and give a summarize description. Do what my peers do.
 

Mike Ault

Junior Member
Joined
Sep 23, 2004
Professional Status
Certified Residential Appraiser
State
Texas
Do what my peers do.
Sometimes part of those monthly dues that you see are going to defend against or settle some lawsuit being assessed against the entire project. A child could have gotten run over in an inadequately marked intersection for instance. You will never know things like that unless you make the effort to find out. You should have in-depth knowledge supporting the answer to every one of those checkboxes that you click. Now that you know the importance of such things you will have to impart that knowledge to your peers and raise the professionalism of your local appraisal community.
 
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks