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Post-hurricane Disaster Inspections

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Doug in NC

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Since Hurricane Matthew, I've now gotten 3 requests for "Disaster" inspections on the 2075 form. First time in years I've gotten requests for that form. Simple enough that you are expected to go out and view the property from the street, snap a couple photos, answer a handful of form questions, and done.

The only thing that is bothering me is that with each new order, the same lender seems to be ramping up on the assignment conditions (after the report is completed in my situation). The form is supposed to be a no value, non-appraisal. Most recent request is that I address any weather-related effect on the neighborhood (house isn't in a defined subdivision, so neighborhood is a subjective term) and whether marketability will be affected from any weather-related activity. Now it would have been fine if these additional assignment conditions were originally stated in the assignment request, but they were not. I'm inclined to decline these additional provision revision requests or seek a more respectable fee for the increased liability factor. Anyone else dealing with these disaster inspections?
 

Tom Woolford

Elite Member
Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I just flat decline them. I'm sure they can get someone to drive all over the place for $50 but its not going to be me.
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
We did a lot of disaster inspections after our big flood a few years back. Had to go through the same learning curve. Fannie requires the lender to address if there is anything that would, "adversely affect the mortgage's value or marketability." Given that is a direct quote from the Selling Guide, some lenders just assume that the appraiser will know that this has to be addressed. Given how rare DIs tend to be, addressing it in the engagement letter seems more wise to me - rather than just relying on the appraiser to know the Fannie requirements.
 
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Doug in NC

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
I just flat decline them. I'm sure they can get someone to drive all over the place for $50 but its not going to be me.
Tom, I didn't even ask for it, and lender offered $300 for one rush job (not that it takes me any longer to do non-rush jobs of this type)! I could not turn it down. But no, I would not take them if paid only $50 either. These inspections are probably less time-consuming than doing a final inspection, but I'm requesting and receiving much more than a final pays - and lower liability to boot.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Fannie requires the lender to address if there is anything that would, "adversely affect the mortgage's value or marketability."
So how does one determine that from data subsequent to an event 3 weeks ago? Short answer you don't. You can't and Fannie is asking for a guess. I'm sorry. I pass....go away you bother me.
 

Doug in NC

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Just completed a refi appraisal where the lender has requested that I incorporate a hurricane/disaster statement into the report. Saves them the added expense of ordering a separate inspection just for the disaster alone. I made an extra $1,000 in the past month doing exterior only disaster inspections!
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Well, if the roof is now three blocks away, that value/marketability things isn't a tough call :)

Well,

If you're ordering a disaster report, wouldn't that pretty much clue you in that it's a disaster and that "typical" buyer's aren't going to flock there until its all cleaned up?

So isn't the stupid answer always that in the short term, the area is impacted, until downed trees and flood damaged roads, at a minimum are repaired?

Leave it to Fannie to come up with a meaningful question.

.
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
Well,

If you're ordering a disaster report, wouldn't that pretty much clue you in that it's a disaster and that "typical" buyer's aren't going to flock there until its all cleaned up?

So isn't the stupid answer always that in the short term, the area is impacted, until downed trees and flood damaged roads, at a minimum are repaired?

Leave it to Fannie to come up with a meaningful question.

.
Not at all. Often when they declare disaster areas they do it on a county basis, and in many cases only part of the county is affected. We saw that with our flood. The flood only affected a small percentage of the county, but lenders needed disaster inspections for all homes in the county
 
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