Occupancy Determination (CHECK BOX)

[Mr Rex]

It's only misleading if the client is misled. Describe and explain when necessary.

Do vacation renters get their mailing address changed for the short period of time? Do the utilities get transferred into their names? Do they get their phone numbers listed at that address?

I dunno. How many of those things did you investigate further before checking the wrong box?

 

[AnonApprsr]

It's a check box, I can't fit "Owner Occupied *" in the checkbox. I could check both boxes... but that wouldn't really make sense. Oh and for the record the homeowner/borrower told me all of this, and had the renters leave a key for me, as they weren't even there when I went. I initially felt as Webbed and others say: it is what it is, on that day. Webbed, you mention Fannie regs/guidelines, is there somewhere that deals directly with this that I can quote?


Thank you everyone for the comments. I appreciate it, I will have to make a decision soon.

 

[CANative]

What if the owners second cousins from Romania were staying at the place for a long weekend and sent them a check for a couple of hundred dollars? And that was the weekend the appraiser showed up?

The owners of this property probably cannot get an "owner occupied mortgage" because they rented out the property and that's the entire point of this issue. The check box is not as important as the explanation. It's their problem, not the appraiser's problem.

 

[CANative]

Webbed, you mention Fannie regs/guidelines, is there somewhere that deals directly with this that I can quote?

Instead of looking it up in the selling guide, this article sums it up in easy to follow narrative.

http://www.ehow.com/about_6387394_definition-owner_occupied-mortgage.html

 

[Webbed Feet]

It's only misleading if the client is misled. ...snip....>

LOL. No, really. It's only misleading once a state board detemines the fine and how many hours of CE, that won't count for CE, the appraiser has to take. After that, it gets VERY misleading when you find out your E&O won't renew any longer because you failed to notify them immediately, so they could cancel you sooner, of the board sanction. Later, as every new client you try for hands you paperwork to get "approved" that asks if you ever been sanctioned... it just keeps getting more and more misleading all the time.



P.S. I sure agree with the check box thing. The "occupancy" check boxes are certainly one of the many cans of worms handed to appraisers by people that thought they solved something when they didn't. All part of the "Blame the Appraiser," mentality we deal with.

 

[AnonApprsr]

Yes, but I'd like to quote the actual selling guide when I respond to the client.


From Can's link:

According to the Federal National Mortgage Association, commonly known as Fannie Mae or the abbreviation FNMA, an owner occupied mortgage secures a property that is a borrower's principle or primary residence. Simply put, it is the home base where a borrower states he will live for a majority of the year. The owner occupied status directly applies to the property as well, so the terms "owner-occupied mortgage" and "owner-occupied property" are generally interchangeable.

Where do they get that bold line? If that's a true interpretation (ha), than I'm wrong and it's owner occupied. Right?

 

[CANative]

LOL. No, really. It's only misleading once a state board detemines the fine and how many hours of CE, that won't count for CE, the appraiser has to take. After that, it gets VERY misleading when you find out your E&O won't renew any longer because you failed to notify them immediately, so they could cancel you sooner, of the board sanction. Later, as every new client you try for hands you paperwork to get "approved" that asks if you ever been sanctioned... it just keeps getting more and more misleading all the time.

Please. Stop spouting about state boards.

 

[BOCK FOLKEN]

It's a check box, I can't fit "Owner Occupied *" in the checkbox. I could check both boxes... but that wouldn't really make sense. Oh and for the record the homeowner/borrower told me all of this, and had the renters leave a key for me, as they weren't even there when I went. I initially felt as Webbed and others say: it is what it is, on that day. Webbed, you mention Fannie regs/guidelines, is there somewhere that deals directly with this that I can quote?


Thank you everyone for the comments. I appreciate it, I will have to make a decision soon.

If you want to refer to the guidelines I posted, they come directly from Fannie Mae's Selling Guide which you can easily find Googling "Fannie Mae Selling Guide" then look for second home requirements. All lenders will be familiar with this guide as it is pretty much their bible. That thing has chapter and verse numbers if you want it.

If it were me, I'd check "Tenant" then explain in the addendum, that all your info is based on verbal representations made by the borrower. Although we can slice it a thousand ways, that is the bottom line truth, or so it seems to me.

bock

 

[AnonApprsr]

If it were me, I'd check "Tenant" then explain in the addendum, that all your info is based on verbal representations made by the borrower. Although we can slice it a thousand ways, that is the bottom line truth, or so it seems to me.

That's what I did. They aren't happy. I'd like to at least be right, if they're going to be unhappy.

 

[rijman]

Interesting topic.

Do you state the occupancy based on the date of inspection? What if the owner is on a two week vacation, is the home vacant as of the appraisal date? What if during the vacation they have a house sitter, is the home tenant occupied? What if following a purchase the home owners are in the process of moving their stuff into the home but not living in it yet, is the home vacant or owner occupied? If appraising a vacation home that is used 2 months a year, similar to a $12M oceanfront I appraised in La Jolla, is it owner occupied if you appraise during the 2 months the owners are there and vacant if you appraise during the other 10 months?

Is the appraiser required to report occupancy only as of the appraisal date or look at a wider time frame in the case of a vacation home used 2 months a year? Does the fact that a property is owner occupied 75% of the year make it owner occupied?

I think the appraiser checks the box believed most appropriate and provides an explanation within the report. That way the information is being provided to the lender, no one is misled and the lender can decide how they want to proceed.