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No Kitchen...so What's The Problem.

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Joined
Jan 16, 2002
Got an assignment on a classical 1920 vintage center-hall
which was an old estate sale with original interior, etc.
I show up to do refi appraisal. The current owner has gutted the kitchen in anticipation of doing a major renovation (on the whole structure) - I guess they eat out a lot or order considerable pizza and chinese deliveries. Anyway, I call mortgage broker and explain I have to make subject to installing kitchen. Mortgage broker says "no", just do it as-is without kitchen - OK, no problem, whatever. I indicate in scope/purpose/function) - "appraiser has been instructed to appraise as-is without kitchen" and make appropriate deduction in grid.

That was 2 weeks ago. Mortgage Broker calls today and says lender wants a statement from appraiser that "kitchen materials are on site and ready to be installed"....hmmm - but that's not true (at least as of
the effective date). Broker says lender needs this statement in report so it will be "acceptable to Fannie Mae"......hmmm - seems a little hinkey to me.

Have you ever heard this one before ?
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Joe:
I have in fact used that phrase to satisfy an underwriter (Protocol not found in MY Fannie Regs)

But I always have a dated photo to prove my point.

If they can tell you that the materials ARE in fact presently on site, you can go and inspect (for a comensurate fee ~ of course) and state in an addendum that as of THIS date I observed the materials to be on site etc.

You did the report as instructed "as-is", the rest fo the story is their little problem, not yours.

They probably will want a final inspection as well ~ never mind that your value was predicated on "as-is". :rolleyes:
 

Pam Wyant

Senior Member
Joined
Feb 12, 2003
Professional Status
Certified Residential Appraiser
State
West Virginia
Wonder what makes the underwriter think that materials on site insure that they will be installed if the property goes into foreclosure?
 

Rich Hahn

Senior Member
Joined
May 2, 2003
Professional Status
General Public
State
Colorado
Pam

I have a vanity and "gutted" bath for the past 3 years...
looks like now I'll have time to work on it..(truth)

How many times have homeowners told us what they are going to do....
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
What makes the underwriter think the appliances will go in the house if it doesn't go into foreclosure?
 

Pam Wyant

Senior Member
Joined
Feb 12, 2003
Professional Status
Certified Residential Appraiser
State
West Virginia
Rich, larry

Valid points.
 

Tim The Enchanter

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I've seen 3-4 of these gutted kitchens just this summer.
No finish floor, no cabinets, no counters, no appliances, or fixtures, or anything. Can you say "subject to"? :lol:

Homeowners! Even if that kitchen is uglier than sin! and older too. Do NOT rip it out until the loan for the remod is in your account!

An old outdated and barely working kitchen is far far better than NO kitchen at all. NO kitchen = BIG red flag! :lol:
 
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