Reverse Mortgage Payoff

[rlavallee]

I am completing an appraisals for a homeowner to use in paying off an HECM Reverse Mortgage. The owner was advised to have an FHA Appraiser complete the appraisal. I am in fact FHA Certified. While inspecting the dwelling I noted some scaling and peeling paint on the exterior siding, and a missing portion of a trim board along the roof line. Does the dwelling have to meet minimum property standards for payoff of the reverse mortgage? and Do I make the appraisal subject to repair/replacement of the missing trim and scraping and re-painting the peeling/scaling exterior paint?

 

[glenn walker]

No there not getting a FHA loan their getting a new conventional line of credit to pay off the FHA loan. They don't even need a FHA appraiser in most cases unless FHA is now making Helocs. There are no MPR on Helocs.

 

[Flakey]

I would note the items, adjust accordingly and make it "as is".

 

[Tom D]

Appraisers are the FHA police for home inspection. However, if conv fin, saying that in jest, your are a little over the top of your super appraisal powers.

 

[Sadie]

I am completing an appraisals for a homeowner to use in paying off an HECM Reverse Mortgage. The owner was advised to have an FHA Appraiser complete the appraisal. I am in fact FHA Certified. While inspecting the dwelling I noted some scaling and peeling paint on the exterior siding, and a missing portion of a trim board along the roof line. Does the dwelling have to meet minimum property standards for payoff of the reverse mortgage? and Do I make the appraisal subject to repair/replacement of the missing trim and scraping and re-painting the peeling/scaling exterior paint?

What does your engagement letter say? Sometimes you just mention it and sometimes you call for repairs.

 

[Dublin ohio]

I am completing an appraisals for a homeowner to use in paying off an HECM Reverse Mortgage. The owner was advised to have an FHA Appraiser complete the appraisal.

Who is your client?

 

[J Grant]

I do not have an official answer - however if there is no case number, then it is not an FHA appraisal, so unless the client has a specific order to make it conform to an FHA appraisal, then the solution can be make the repaint a recommendation rather then a subject to condition -

 

[Carnivore]

Depends on who your client is and what they want.

What was unclear in your post was not the existing loan that was being paid off. I am a little unclear who your actual client/lender is. ie conventional or a government type loan.

 

[Mark K]

If they are getting an FHA loan to pay off the RM, I'd follow FHA guidelines.

Otherwise, I would assume conventional but you should inquire what the client wants.

Oftentimes the client will want an FHA approved appraiser because that's the type of report they're most accustomed to seeing.

The owner was advised to have an FHA Appraiser complete the appraisal.

BTW, who ordered the report? Its unusual for the owner to order an appraisal for a mortgage loan and it sounds as though this is the case.

 

[rlavallee]

I was hired by the home owner. The purpose of the appraisal is to determine market value of the home in order to pay off a reverse mortgage (HECM). I have spoken to the holder of the reverse mortgage and they confirm that they required the borrower to obtain an appraisal, completed by an FHA Appraiser. It seems that the appraisal is required prior to the home owner being able to sell their home. My understanding is that the appraisal is to be used to determine the amount of equity the owner has in the property and ensure the amount of the reverse mortgage will be covered from the sale proceeds. There in lies the question. The appraisal is not being used for financing of any type, but is being used to determine approval of the sale for pay-off of an FHA Insured Reverse Mortgage.