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Rov For REO

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Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
Assignment was for a vacant reverse mortgage closeout 4 months ago. At the time of inspection the subject was good shape other than damage from a tree. The tree had fallen and the roots damaged the foundation. The subject was under contract once, but the contract fell through. Client is requesting a ROV. It appears the market is reacting to the damage. On the one hand, the request appears reasonable, on the other it is a royal pain. My question is this, what caveats are lurking when doing a ROV on an assignment for a vacant REO property which is an active listing? My concern isn't so much for changing the OV, but the possibility of a vindictive witch hunt at some point in time, some engage in that pursuit with a passion. For those who perform FHA closeouts, I'd like to hear how you handle this type of request. I've had ROV requests for sales, but never for an REO.
 

Non Sequitur

Elite Member
Supporting Member
Joined
Feb 14, 2002
Professional Status
Certified Residential Appraiser
State
Louisiana
I haven't had one [ROV] but from what I can understand selling an HECM REO below the appraised value is a big no-no. I'll guess that's what they are trying to do. If the damage is more than what was assumed in the first report or the market reaction is larger than anticipated I would have no problems considering that in a new assignment.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
New assignment,

and if they have an agreement of sale, better send it over with the letter of engagement.,

.
 

Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
I agree, a new assignment is the way to go, but for some odd reason they want a ROV. From what I gathered there are things happening behind the curtain with the listing agent, they appear to have a big beef with him with this listing and several other listings. Who knows, maybe they don't want to order a new assignment because they would also need to order a new BPO. I get the idea he is "on trial" with them, maybe due to shenanigans with previous sales. The agent is notorious for single digit DOM for REO listings and there are whispers about many buyers being extended family members. They've been sending me over a hundred assignments a year for over a decade and this is the first request of this sort, plus the head honcho there is so damned good looking, we're linkedin and fakebook pals and she's quite a flirt! :)
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
There is no such thing as an ROV, except in mortgage broker and Realtor land.

this information is new after the effective date of the OA, hence, a new appraisal with a new effective date is warranted if they want this new information to be considered in a valuation.

.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
It's four months later and new information has emerged from the market due to no offers during this time period. you can look at it as an ongoing assignment with an enlarged scope of work...or a new assignment.

I don't normally recommend this, but if this is a long term client for years and they are in a jam with this property, you might want to consider doing a free new assignment using original eff date inspection with new information that has occurred since that date for new signature date.all.
 
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Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
It's four months later and new information has emerged from the market due to no offers during this time period. you can look at it as an ongoing assignment with an enlarged scope of work....your call.


Not unless you want to violate USPAP.

AO3.

.
 

Flakey

Senior Member
Gold Supporting Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
South Carolina
New assignment. I would detail the ROV request in the new report and make it subject to an inspection of the foundation with an estimate. I'll bet an inspection already exists from the prior deal that fell through.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
just finished the USPAP course, FAQ, if original effective date is kept, then expanding SOW by considering additional information after the effective date can be a continuation of same assignment with a later signature date and same original effective date . does not have to be a new assignment.

USPAP does not address value in that statement.

USPAP If effective date is changed, a new effective date means a new assignment.

This OP situation because your information is a condition about subject and so much time has elapsed, sounds more like a category for a new assignment with a new eff date /reinspect. assignment.
 
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