Occupancy

[Mr. Lisle]

I wanted to see how most appraisers handle occupancy. I have all of my orders filled out with occupancy and confirm with the HO at the inspection. Now my issue is when instinct and logic conflicts with this info. Just recently I had a home and everything said there were tenants, the owner was driving a $50k car but the home was only worth $125k, the furniture was falling apart, yet HO was wearing a $1k suit, talking on an Iphone, pictures on the wall were of an full family (mother, father, kids) the owner was in the pictures and was a different race.... You get the drift, but my question is how to handle it. I have a CYA statement stating there verification is impossible, because in my mind my instincts can be wrong. I have had cases that could go either way, H.O.s out of town and the "brother" lets you in... I have heard appraisers that go through the mail, which I see as stepping over the line (and not foolproof, I get mail from previous owners daily).

 

[Ray Miller]

I wanted to see how most appraisers handle occupancy. I have all of my orders filled out with occupancy and confirm with the HO at the inspection. Now my issue is when instinct and logic conflicts with this info. Just recently I had a home and everything said there were tenants, the owner was driving a $50k car but the home was only worth $125k, the furniture was falling apart, yet HO was wearing a $1k suit, talking on an Iphone, pictures on the wall were of an full family (mother, father, kids) the owner was in the pictures and was a different race.... You get the drift, but my question is how to handle it. I have a CYA statement stating there verification is impossible, because in my mind my instincts can be wrong. I have had cases that could go either way, H.O.s out of town and the "brother" lets you in... I have heard appraisers that go through the mail, which I see as stepping over the line (and not foolproof, I get mail from previous owners daily).

I ask all the time. One question I ask is when did you buy the home? If they stammer and studder, I look deeper.

Got one now that the guy who met me at the door said he was a tenant. The name on the order was not the same name at the court house. So I marked tenant. Got call on it, becaused the lady of the house was using her maden name or married. The guy that was there was her shack partner, while she was getting her Divorce. Because they planned to get married she use his name on the loan application. I get a call from the lender that I was wrong on the occupancy. What also complacated this one it was a purchase. She was buying her soon to be x out.

 

[Ariba]

When you access the county assessors data base on the property is the tax notification mailed to another address?

I had something similar happen to me last month. The lady of the house wrote me a check for the appraisal and proceeded to tell me that she would be reimbursed from the landlord. She further told me that her lease ran until May and that she would be looking for another place to rent. I get a call from the owner after having delivered the appraisal stating that I marked the wrong box for tenant occupancied, as it was owner occupied. That lady was his significant other. I told him to fax me the past three months of the utility and water bill in his name and I would consider changing the box to owner occupied. :icon_idea: I have not talked to him since. I wonder why?

 

[Ray Miller]

When you access the county assessors data base on the property is the tax notification mailed to another address?

Don't always work in the area I cover. About 50% of the SF are second homes.

You just got to dig a little deeper with you research.

May we ought to approach the subject. Ask for picture ID, with current address on it??????

 

[Joe Stachow]

I always check with the County Clerk for ownership info...if the County says so, then it must be so, at the time I called anyway! If the live-in is getting a divorce or changing their name or just the wife is the one applying is a moot point to me because I'm interested in putting on the report who the owner is, who the seller is. Am I wrong in any of this?

 

[Mr. Lisle]

Don't always work in the area I cover. About 50% of the SF are second homes.

You just got to dig a little deeper with you research.

May we ought to approach the subject. Ask for picture ID, with current address on it??????

Same in my area, whenever this comes up the LO claims it is a second home. Same would happen with the ID, if it is a second home they would have a primary address on it. I dig as much as possible without crossing the line. I can't very well interrogate the HO.

 

[Ariba]

Don't always work in the area I cover. About 50% of the SF are second homes.

JMHO, but depending on the market area, I seriously doubt that this property as descibed in the post was his second vaction home.

Also, even if it is a vacation home it is not their primary residency and should not qualify as owner occupied for most lenders.

 

[Ray Miller]

Also, even if it is a vacation home it is not their primary residency and should not qualify as owner occupied for most lenders.

Mr. Seylhouwer,

How would you class it.

I have many friends who have several homes, that they use around the counrty and own. They don't rent them out, they have their personal belongings in them. How would you class them?

My self, I have a home here in Lyndon and I have another residence at Sparta. I rent neither out. How would you class them? I spend about equal time at each.

 

[Ariba]

Mr. Seylhouwer,

How would you class it.

I have many friends who have several homes, that they use around the counrty and own. They don't rent them out, they have their personal belongings in them. How would you class them?

My self, I have a home here in Lyndon and I have another residence at Sparta. I rent neither out. How would you class them? I spend about equal time at each.

Mr. Miller,

Congratulations on having two homes. However, no matter how you cut or dice it, only one home can be your primary resident. However, for the appraisal I would mark it either owner occupied, tenant, vacant, and explain what I observed at the time of the inspection in the addendum.

Why is it that so many lenders will not finance a second and/or vacation home even if they are by your definition "owner occupied"? Try getting FHA financing on your second "owner occupied" home.

As far as Primary resident is concerned it can be identified by: which address do you use to vote in the general election. What address is on your driver's license? Where is your car registered. Which State Tax do you pay income tax? Which home do you claim and deduct on your federal and state for the mortgage interest?

 

[Mr. Lisle]

Mr. Seylhouwer,

The report asks for owner occ, tenant, or vacant. I personally do state if it is a second home in my addendum, but I still mark it as "owner", since the owner does occupy the home. I mark vacant when the home has little or no furniture, and I mark it tenant when I know it is tenant or when I find proof that it is rented. My issue is when the facts don't seem right, I have often thought of tax records and assessors records, but in my area they are often wrong. A friend's house was purchased five years ago, but the previous owner still appears on the MLS tax records.