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Privately Ordered "FHA" Appraisal

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Cancer65

Freshman Member
Joined
Sep 19, 2007
Professional Status
Certified Residential Appraiser
State
Massachusetts
Hello, I hope that someone has some experience or knows something about this situation. I was contacted by a private citizen to order an FHA appraisal, I thought this a little unusual as it is the lender who orders the appraisal, in my experience. The back ground is that he wants to buy back his deceased mothers home that was subject to a reverse mortgage. The lender told him that he needed to seek out an FHA appraiser to appraise the property in order to establish a basis for the purchase. I've never heard of such a thing before, does this make any sense to anyone or am I making this more complicated than it needs to be? I mean, where does the FHA # come from, do I need to contact the lender to establish a relationship? Shouldn't the Lender select the appraiser? I have already set a tentative appointment time regardless, Just looking to dot all my "I"s and cross all my "t"s. I would appreciate greatly if someone who is familiar with this situation to chime in or anyone with an opinion as well.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
I thought this a little unusual as it is the lender who orders the appraisal, in my experience. ( you lack the experience to perform the appraisal)

I was contacted by a private citizen to order an FHA appraisal, (the client)


The back ground is that he wants to buy back his deceased mothers home that was subject to a reverse mortgage. (intended use)

The lender told him that he needed to seek out an FHA appraiser to appraise the property in order to establish a basis for the purchase.(purpose of the report)

I've never heard of such a thing before, does this make any sense to anyone or am I making this more complicated than it needs to be? (yup)

I mean, where does the FHA # come from, (the client is not applying for a loan)

do I need to contact the lender to establish a relationship? (Not unless you want a loan for something)

Shouldn't the Lender select the appraiser? (They will if they decide your client's purchase offer is too low)

I have already set a tentative appointment time regardless, Just looking to dot all my "I"s and cross all my "t"s. I would appreciate greatly if someone who is familiar with this situation to chime in or anyone with an opinion as well.

Apparently you need some mentorship in private work.

Big hint,

DO NOT USE THE URAR to write your report.

.
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Hello, I hope that someone has some experience or knows something about this situation. I was contacted by a private citizen to order an FHA appraisal, I thought this a little unusual as it is the lender who orders the appraisal, in my experience. The back ground is that he wants to buy back his deceased mothers home that was subject to a reverse mortgage. The lender told him that he needed to seek out an FHA appraiser to appraise the property in order to establish a basis for the purchase. I've never heard of such a thing before, does this make any sense to anyone or am I making this more complicated than it needs to be? I mean, where does the FHA # come from, do I need to contact the lender to establish a relationship? Shouldn't the Lender select the appraiser? I have already set a tentative appointment time regardless, Just looking to dot all my "I"s and cross all my "t"s. I would appreciate greatly if someone who is familiar with this situation to chime in or anyone with an opinion as well.

Your client can order an appraisal which might be based upon FHA appraisal protocol per the 4000.1 to see if the subject property meets HUD FHA's MPRs. This can be reported in a GP appraisal form found in your software package. Just make sure you know who the client is, the purpose, and the intended use of your appraisal report. Then, disclose, disclose, and then disclose.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
If the purpose is to repurchase from an FHA loan, then utilizing FHA protocols would be wise, although, not mandatory,

As financing equivalent to cash - states that the FINANCING insured by FHA is not impacting the VALUE of the real estate.

Oh my,

what a tangled web appraisers weave.

.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
FHA reverse mortgages cannot be assumed and if there is equity the Son has two choices-either pay off the mortgage or obtain a new purchase loan from a different lender. I complete these on a GP or Non-Uad form. These are completed in "as is" condition. I have never had a case number or been required to follow 4000.1 type of inspection. The Son should have some paperwork or a letter from the reverse mortgage lender explaining what they require.
 
Last edited:

Cancer65

Freshman Member
Joined
Sep 19, 2007
Professional Status
Certified Residential Appraiser
State
Massachusetts
I thought this a little unusual as it is the lender who orders the appraisal, in my experience. ( you lack the experience to perform the appraisal)

I was contacted by a private citizen to order an FHA appraisal, (the client)


The back ground is that he wants to buy back his deceased mothers home that was subject to a reverse mortgage. (intended use)

The lender told him that he needed to seek out an FHA appraiser to appraise the property in order to establish a basis for the purchase.(purpose of the report)

I've never heard of such a thing before, does this make any sense to anyone or am I making this more complicated than it needs to be? (yup)

I mean, where does the FHA # come from, (the client is not applying for a loan)

do I need to contact the lender to establish a relationship? (Not unless you want a loan for something)

Shouldn't the Lender select the appraiser? (They will if they decide your client's purchase offer is too low)

I have already set a tentative appointment time regardless, Just looking to dot all my "I"s and cross all my "t"s. I would appreciate greatly if someone who is familiar with this situation to chime in or anyone with an opinion as well.

Apparently you need some mentorship in private work.

Big hint,

DO NOT USE THE URAR to write your report.

.

Thank you for your response, I was making more out of it than I needed to. I've completed privately ordered appraisals written on the GP form many times, that would not be an issue for me. I will have to talk more in depth with the client and view whatever correspondence He had with the lender, I will also perform a property viewing consistent with FHA requirements as well as photograph everything as if it were an FHA assignment. What set me up for the questions above was that He stated that the original client required him to order an FHA appraisal from a HUD approved appraiser.
 

Cancer65

Freshman Member
Joined
Sep 19, 2007
Professional Status
Certified Residential Appraiser
State
Massachusetts
Hello, I hope that someone has some experience or knows something about this situation. I was contacted by a private citizen to order an FHA appraisal, I thought this a little unusual as it is the lender who orders the appraisal, in my experience. The back ground is that he wants to buy back his deceased mothers home that was subject to a reverse mortgage. The lender told him that he needed to seek out an FHA appraiser to appraise the property in order to establish a basis for the purchase. I've never heard of such a thing before, does this make any sense to anyone or am I making this more complicated than it needs to be? I mean, where does the FHA # come from, do I need to contact the lender to establish a relationship? Shouldn't the Lender select the appraiser? I have already set a tentative appointment time regardless, Just looking to dot all my "I"s and cross all my "t"s. I would appreciate greatly if someone who is familiar with this situation to chime in or anyone with an opinion as well.

Thank You everyone for your time and thoughtful responses. I should not have any issues going forward with this.
 

Ms. Janet

Elite Member
Gold Supporting Member
Joined
Oct 27, 2004
Professional Status
Certified Residential Appraiser
State
Florida
Hmmm, I don't think you need an FHA Case Number or a Lender for an appraisal needed to pay off a HECM after death. I believe they just need an appraisal to determine the market value. The heirs can buyback at max 95% of mv regardless of the loan balance or sell the property, etc.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
I had a request from a loan servicing company to do an appraisal that involved a reverse mortgage. The "mother" pulled a reverse mortgage, pretty much let the property run down, she died, and it took about a year to get to the point of establishing the value of the property, so the "son" could purchase the property. In the grand scheme of transfer of real property, the Reverse Mortgage system, seems to be screwed up, IMO. Oh, and there wasn't an FHA aspect to it, as in getting the property up to FHA standards.

I think your client probably needs to get an authorization from the mortgage servicer and your client probably be the mortgage company. Eventually, someone has to do the calculation, MV - accrued interest - insurance - fees - fees - fees - appraisal fees.
 
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