Occupancy Determination (CHECK BOX)

[Mr Rex]

:new_multi:

and it was tenant occupied.

 

[Peter LeQuire]

Anon wrote "I did that, and the lender has decided that they would like to proceed with the Owner Occupied checkbox checked."

I would guess that it's someone in loan production that wants the OO checkbox checked: the lender probably wants an accurate description of the occupancy. Fannie does, as well, as do all of the other potential people/firms that will rely on the appraisal to ascertain the proper risk classification for the loan being contemplated.

JRS is on to something. However, wouldn't a true second home that was furnished be considered owner occupied for the period it is unoccupied?

If you look at the house on "turnover day" isn't the property occupied by the cleaning crew? Which isn't a tenant, is not the owner, is an agent of the owner................

Arrrrrrrrrrrgh! m2:

 

[Mr Rex]

JRS also said access was through a rental company.

 

[CANative]

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.

AA said the homeowner told the renter to leave a key and they weren't even there. So VACANT needs to be checked.
:icon_mrgreen:

 

[Webbed Feet]

<....snip....> it is not a rental property. <...snip....> rents it part time when he's not there.

The selling and appraisal guide doesn't say which box should be checked. It merely states that the appraiser is to determine the occupancy.

Well golly gee, that made sense! :Eyecrazy:

So at the point in time of the effective date, when the property owner was receiving rent from the tenant, and Reaty that you say wasn't rented, do you imagine for a moment that a judge in court might.. by coinkydink, refer to the owner as a landlord?

Excerpt from Oregon real estate law:

The tenant has a right to possession of the estate and it is the landlord's responsibility to provide that possession to the tenant at the agreed-upon-time. The landlord must provide actual possession, not just the right to possess. The landlord, must deliver the premises unoccupied by prior tenants or other parties. It is the responsibility of a landlord to bring a suit to evict holdover tenants and to recover possession for the new tenant.

Gosh, what do you know, at least in Oregon the rental would be considered "unoccupied" at the moment the possession was transferred to a tenant. And the landlord is required to provide actual possession, not just a right to possess. Makes ya wonder when a person rents their Realty to a tenant who it is that has legal occupancy, and what party does NOT have legal occupancy, donut?

m2:

 

[Webbed Feet]

AA said the homeowner told the renter to leave a key and they weren't even there. So VACANT needs to be checked.
:icon_mrgreen:

You've been rubbing so much balm into your hip your brain is now chemically imbalenced. Somebody needs to call 911 and get this man treatment!

 

[Mike Kennedy]

Part B, Origination Through Closing
Subpart 2, Eligibility
Chapter 3, Occupancy and Property Eligibility
June 30, 2010
Printed copies may not be the most current version. For the most current version, go to the online version at
http://www.efanniemae.com/sf/guides/ssg/. 229
Overview​

Fannie Mae purchases or securitizes mortgages secured by properties that are principal residences, second homes, or investment properties. For the maximum allowable LTV/CLTV/ HCLTV ratios and representative credit score requirements for each occupancy type, see the

Eligibility Matrix.

Principal Residence Properties

A principal residence is a property that the borrower occupies as his or her primary residence.​

The following table describes conditions under which Fannie Mae considers a residence to be a principal residence even though the borrower will not be occupying the property.

Borrower Types Requirements for Owner-Occupancy​

1. Multiple borrowers Only one borrower needs to occupy and take title to the property, except as otherwise required for mortgages that have guarantors
or co-signers. (See B2-1.2-04, Continuity of
Obligation.)​

2. Parents wanting to provide housing for their physically handicapped or developmentally disabled adult child If the child is unable to work or does not have
sufficient income to qualify for a mortgage on his or her own, the parent is considered the owner/occupant.​

3. Children wanting to provide housing for elderly parents
If the parent is unable to work or does not have sufficient income to qualify for a mortgage on his or her own, the child is considered the owner/occupant.​

Apparently, per ANON's post:​

1. The Residence was not occupied, as of the Effective Date, by any of the 3 acceptable Occupant types specifically authorized by Fannie above.​

2. The Residence was Tenant-Occupied. ​

Unless the Assignment SOW specifically authorized the appraisal of a Second Home and not a Primary Residence, indicating the property as "Owner-Occupied" would be intentionally misleading and non-compliant with Fannie Guidelines.​

ANON, what were the SOW and Assignment Conditions for the Appraisal? Did the Order, or SOW, or Assignment Conditions stipulate owner-occupied Primary Residence? (given the "client's" demand, very likely it was ordered for an OWNER-occupied, PRIMARY Residence).​

​

 

[CANative]

This isn't a legal matter than needs dicitionary definitions. It's a Fannie underwriting issue that requires disclosures from the appraiser. I never said just check the box and move on. I said check the box and explain the results of the appraisers on site findings.

You're making way too much of this. As usual.

 

[Webbed Feet]

Check a box and then drop back in the addendum and explain the matter is really the opposite?

Contract Section: Did
Addendum: Did not

Neighborhood Section: Urban
Addendum: Rural

Neighborhood Section: Increasing
Addendum: Decreasing....

I could go on and on.. but you get the idea and no, I don't feel anyone saying "Tenant Occupied" is making too much of any of this. Tenant occupied, at the time of the effective date, is the fact. Anything else is not. The only trouble any appraiser would get in for correctly indicating tenant occupied is with a client trying to demand something they should not be trying to demand. The opposite could have much more serious repercussions.

P.S. Improvements: Drop Stair
Addendum: Scuttle

Improvements: Existing
Addendum: Proposed

Improvements: Crawl Space
Addendum: Concrete Slab

Site: Public
Addendum: Private

LOL .. Yes, it's all in the disclosure section!

 

[JRS at OBX]

If you look at the house on "turnover day" isn't the property occupied by the cleaning crew? Which isn't a tenant, is not the owner, is an agent of the owner................

Arrrrrrrrrrrgh! m2:

Sometimes! I try to keep the cleaning crew out of the interior pictures... :icon_mrgreen: