Rov For REO

[Ms. Janet]

It has been 4 months, any number of things could have happened to the house by now. Tell them you need an onsite inspection by a licensed building contractor to determine if a structural inspection is necessary and to provide an estimate for repairs. If you don't ask for onsite and a licensed contractor, likely they will email photos to some company for a repair estimate.

 

[jay trotta]

It has been 4 months, any number of things could have happened to the house by now. Tell them you need an onsite inspection by a licensed building contractor to determine if a structural inspection is necessary and to provide an estimate for repairs. If you don't ask for onsite and a licensed contractor, likely they will email photos to some company for a repair estimate.

Agreed, follow the rules of the road; get the Inspection results, sounds like there's more to this than meets the eye; 4 months later, you are at the Turning point in time, New assignment for sure and it would also be in the Clients best interest to follow the lead, for many reasons.

 

[residentialguy]

Bobby, did you give them Market Value or Disposition/Liquidation Value?

 

[J Grant]

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.

Imo you are way too focused on the listing agent . It's possible that on eff date you simply did not consider the damage enough in the value. "It was in good condition except for damage from a tree". / How can it have foundation damage yet be in good condition? (what C rating did it get, was it UAD or not).

In any case, we're human and sometimes we don't get it right. It might have been over valued on eff date if damage to the foundation impact on marketability was off. It's not a matter of disposition value vs market value. If they asked for a market value opinion and it was based on reasonable exposure, then that was the assignment and you may have over valued it. Go back and look at your reports and the comps, did you have any comps with a similar damage or repair issue?

This is a long time client who it sounds is a client you want to keep, and imo they are giving you a chance to address what was perhaps an issue that may have been mis calculated first time around on the appraisal ( I have a few or more am sure I'd love to redo if had the chance, none of us are perfect)

Put your ego aside, put issues with listing agents aside, look at your original appraisal and comps and how the damage issue was handled.

 

[Bobby Bucks]

Res it was market value.

Put your ego aside

In this business? Is that even possible?

After a somewhat lengthy phone conversation with the client my suspicions were confirmed about the listing agent. There were 2 gaps in the listing history, 3 weeks when it was under contract and 9 weeks it was temporarily off the market for an unknown reason, my guess is he was gaming the system. Anyway, I provided them a complete listing history which shows the property had only been exposed for 4 weeks. I was also informed in code speak that they're having problems with this agent being sloppy and possibly unethical. In some instances agents are not even going to their own listings, but simply enter the lockbox code in MLS. Also, there were reports of many listings not having for sale signs, a lazy agent or one who wants to deliberately hide the property so they can reduce the price for a friend or relative when the property hasn't sold. I'm wondering now if this property has a sign in the yard,

This incident was annoying and I let them know I could not be their "listing police" and monitor the progress in MLS simply because I had an assignment of the subject. They dropped their request for ROV. Most REO agents are ethical and competent, this one happens to be a skunk and it appears it caught up with him.

 

[residentialguy]

Bobby, did you give them Market Value or Disposition/Liquidation Value?

Market value on a property is almost always higher than the most probable price a lender can sell that property for as a vacant REO. Lenders and FNMA are idiots when it comes to REOs and ordering appraisals.

 

[Meandering]

Market value on a property is almost always higher than the most probable price a lender can sell that property for as a vacant REO. Lenders and FNMA are idiots when it comes to REOs and ordering appraisals.

Or appraisers aren't pricing in the perceived buyer's risk for no seller disclosures, no warranties, PO'd buyers who have lost previous REO deals with foot dragging lenders, anal appraisers, and repairs that need to be done, that no one will let the buyer do - prior to the appraisal.

We'll all just pretend none of that exists, nor impacts prices buyers are willing to pay for REOs, and call the market value equivalent to something similar that does not represent similar risk and time wasting of buyers.

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