Pool not completed yet..

[FMV]

Completing an assignment-we feel the lender will request the appraisal to be Subject to the completion of the pool.. its about 2-weeks left to completion. Curious how much credit someone would give this if it is not fully functional?? We are in N. TX area
Please no rude or crude comments, please...

 

[FMV]

Completing an assignment-we feel the lender will request the appraisal to be Subject to the completion of the pool.. its about 2-weeks left to completion. Curious how much credit someone would give this if it is not fully functional?? We are in N. TX area
Please no rude or crude comments, please...

BTW.. the home is considered a Q3 Quality.. Craftsman style.. fairly new.. 2016.

 

[J Grant]

Completing an assignment-we feel the lender will request the appraisal to be Subject to the completion of the pool.. its about 2-weeks left to completion. Curious how much credit someone would give this if it is not fully functional?? We are in N. TX area
Please no rude or crude comments, please...

If the appraisl is made subject to completion, then it is as if the pool were complete on the eff date , so there is no "credit" to give.

A lender might request a cost to cure estimate but they usually do not if it is made subject to completion.

 

[FMV]

If the appraisl is made subject to completion, then it is as if the pool were complete on the eff date , so there is no "credit" to give.

A lender might request a cost to cure estimate but they usually do not if it is made subject to completion.

this makes sense.. this lender is pretty flexible

 

[Mark K]

Agree that subject-to would require no adjustment.

OTOH, I would assign no value to a partially completed pool.

 

[Surf Cat]

Agree with J Grant in regards to the pool being made subject to completion. Complete the valuation as if the pool is finished.

Make sure to include a comment that the unfinished pool is a health and safety matter. This way, with the lender being flexible as you say, won't request an as is Report with a cost to cure. Subject to only.

 

[Fernando]

I always ask homeowner if they're doing current remodeling.
I know I say too much and I would tell owner to talk to lender if that is acceptable in getting a loan (I'm tired of doing loan agent work).
I can understand why lenders don't like current remodeling because of possibility of mechanics liens.

 

[Overimprovement]

Agree that subject-to would require no adjustment.

OTOH, I would assign no value to a partially completed pool.

I agree with this. I would attach pix, and state that without knowing the costs involved with what still is needed, it is impossible to gauge market reaction (the market would not know either). By the time the borrower could get that information to you, the pool would likely be completed.

The only issue is if a completed pool is needed value-wise to make their loan work, and IF it is, they should be willing to wait for its completion.

 

[glenn walker]

this makes sense.. this lender is pretty flexible

My guess is their taking cash out to finish the pool...Did you ask ? If they are my guess is the lender will hold back the cash in a escrow account to make sure it's completed. SO YES YOU COUNT IT as a new pool with a Hypothetical that it's being completed.

 

[RSW]

Is the unfinished pool a safety hazard? Ask the lender how they want the appraisal done.