REO- No Utilities

[Doug Wegener]

Would be a better form but they dont want that do they?

 

[TXCBoy36]

Unless this is an FHA appraisal, then I would just make it "As Is", there is nothing on the URAR that specifies that you are suppose to verify that the utilities are on or off...I would disclose that fact, but NO actual utility checks required unless it is a FHA process.

 

[Doug Wegener]

I know but you are are making the assumption that the mechanical work including the heating, air conditioning, etc.

1004 says no assumptions permitted. Everyone does it I know but the form says you can't.

 

[Ray Miller]

In the REO part I always call for an inspection of the electrical, heating, cooling, plumbing systems. If on septic and well I also call for those inspections. Saying that if there are problems found it will change the value of the subject property.

Or you could do HC that all is well and working. I think I might.

 

[TXCBoy36]

Okay, so how are you verifying that a winterized evap unit/swamp cooler is operating. Are you making them de-winterize the evap unit to verify its operation...if there are no assumptions....then how do you verify that the information on your comps is true and accurate.....some common sense is required here....Are you assuming that 100% of the basement is finished on your comp or are you entering the comp to verify that the listing agent was honest on the comp sheet?

 

[Richard Carlsen]

An REO valuation is not for lending consideration and the "no assumptions or hypothetical conditions" assignment conditions for something being sold to FNMA do not apply.

If you are going to do an appraisal, it might help if you really understood the Intended Use of the report and what kind of problem you need to solve. It is the Intended Use and the Intended User that dictates the assignment conditions and not the reporting form mandated.