Probate sale and Standard sale.

[JudgeAppraisal]

Realtor is requesting two FHA appraisals be performed on one home. One as a probate sale and one as a standard sale. Both are to be FHA appraisals, and they said once the appraisals are completed and the realtor reviews the appraisals with the lender, they will send over the FHA case number and purchase contracts to be reviewed. What should I do? Decline the work? State that the FHA case number and purchase contract must be reviewed before the appraisal is sent? Can two appraisals be performed on the same property at the same time?

 

[Michigan CG]

Realtor is requesting two FHA appraisals be performed on one home. One as a probate sale and one as a standard sale. Both are to be FHA appraisals, and they said once the appraisals are completed and the realtor reviews the appraisals with the lender, they will send over the FHA case number and purchase contracts to be reviewed. What should I do? Decline the work? State that the FHA case number and purchase contract must be reviewed before the appraisal is sent? Can two appraisals be performed on the same property at the same time?

I smell fish here.....stinky fish.

First of all there are purchase contracts, and you are supposed to review purchase contracts if they are available. Sounds like they are available.

They want two different appraisals, assuming they want them on a 1004 form which states Market Value (which is defined), how would the values be different?

One as a probate sale and one as a standard sale.

Probate assumes a will (deceased person); how does this change the Market Value as defined on the forms versus a "standard" sale?

...........and they said once the appraisals are completed and the realtor reviews the appraisals with the lender, they will send over the FHA case number...........

They want two appraisals for FHA and they won't give you the case number until the REALTOR and LENDER review your appraisals....the ones with "Probate Value" and "Standard Value"......I can't find those definitions in my software......I get a case number before I visit the property.

Once you get the definition of "Probate Value" and "Standard Value", and then perform the appraisals, assuming you can get the definition of the values needed you will be in violation of FHA since you cannot perform an appraisal for "Probate Value" on a 1004 and instead had to put the appraisal on a GP form.

Basically they want a value from you and are shopping until they get an appraiser who hits their number.

By the way, does the Realtor and the Lender have an appraisal license to do a "review"?

 

[Paul Isolda]

The Realtor should not be requesting any appraisal that will be used for lending. They should not be reviewing any appraisal before a lending decision is made. There is no such thing as "probate value" and how did they describe how this value would differ from market value in their minds. What they are requesting is absurd and it's more absurd that they want this for an FHA loan without giving you a case #. If there was a legitimate definition of value other than market value that you would appraise, it could not be done on a 1004 form, especially the new version. If there were 2 different legitimate values for you to appraise, in this case you should do 2 appraisals on GP forms or narratives. Then if they wanted one of those appraisals for lending it would have to be put on the 1004 form, for an additional fee.

Mr. Evans is absolutely right, this stinks like old fish. It is fairly certain that they are trying to get you into a situation you do not want to be in.

 

[Mike Kennedy]

they said once the appraisals are completed and the realtor reviews the appraisals with the lender


Lender ......or......Mortgage Broker?

 

[Carnivore]

Send the Appraisal Request to your HOC and consult with them on how to proceed. This puts FHA on notice, who by the way will be one of your clients.

CC a copy of your request to the lender. This puts them on notice that there game has been exposed.

CC a copy to the attorney handling the probate. That individual wont like this shannigan either. Because probate may eventually deal with the IRS on a very personal level.

Stinky fish... and if your not careful the stinky fish smell will be on you for a long time. You see you can end up as a new fish at a federal pen!

p.s. Take this as a personal insult from the lender and realtor. They are showing utter contempt twoards you. They are giving you no respect at all.

 

[Peter LeQuire]

Stinky fish is right. It smells like one appraisal will be presented to the estate to justify the purchase price of the sale out of the estate, the other to a lender to support a request for credit. It sounds like the most blatant flip scheme ever, assuming the real estate person and lender are looking for different values.

Run, don't walk - the HOC is but a phone call away.

 

[CJ1234]

Do you have the request in writing?

Ask for that first. Then HOC

 

[Jerry Bone Jr]

Realtor is requesting two FHA appraisals be performed on one home. One as a probate sale and one as a standard sale. Both are to be FHA appraisals, and they said once the appraisals are completed and the realtor reviews the appraisals with the lender, they will send over the FHA case number and purchase contracts to be reviewed. What should I do? Decline the work? State that the FHA case number and purchase contract must be reviewed before the appraisal is sent? Can two appraisals be performed on the same property at the same time?

Sounds like you have four assignments on one home. First thing to do is collect the fee. Then simply do the assignments in order.

 

[Webbed Feet]

Realtor is requesting two FHA appraisals be performed on one home. One as a probate sale and one as a standard sale. Both are to be FHA appraisals, and they said once the appraisals are completed and the realtor reviews the appraisals with the lender, they will send over the FHA case number and purchase contracts to be reviewed. What should I do? Decline the work? State that the FHA case number and purchase contract must be reviewed before the appraisal is sent? Can two appraisals be performed on the same property at the same time?

To answer your last question... Yes!

But to decide if you have unacceptable assignment conditions here is another matter entirely. Getting an appraiser to accept an FHA intended use with telling the appraiser the case number will be given the appraiser AFTER the appraiser completes the assignment(s) and delivers the reports is a no brainer no way acceptable assignment condition....

 

[PropertyEconomics]

Webbed gives the absolute correct advice here ....


It would be interesting to reveiw the contracts though ... my guess is the probate is low and the "standard" is higher .... now wouldnt that be an interesting twist of fate for a Realtor that is charged with protecting the interests of their client and following NAR Ethics ....

Would love to read those contracts .... and you should demand them prior to accepting the assignment.