Second Lot on VA Purchase

[J Grant]

If property worth more combined that separate, still would not be improved to it's H&B use.


Lee nailed it. He really did. He drove the nail so hard it ain't funny.

Lee 's post might be along the lines of fannie guideline, (will have to re read it )

WRT treating for assignment purpose the HBU of the excess lot as value in use ( as long as encumbered under one mortgage ) Which I agree with btw - but fact remains the excess lot as a stand alone vacant lot might have a higher $ value then it's contributory (value in use ) as conveyed together with dwelling - which still does not mean check NO on first page for HBU !

Because the HBU of lot as vacant is for analysis purpose to reconcile with its contribution to the whole - since the whole of two properties is subject of the appraisal assignment and thus what the HBU question pertains to on page one.

Imo, I would bet most of these lots don't have much of a higher value if sold alone because if the demand was there, why isn't it being sold that way? In the ones I have done and seen at least, the adjacent lot sat there for years. If the demand is there to buy as a stand alone vacant lot to build , then the subject buyer purchasing it with a dwelling would have to compete with that and offer the same price to seller of the vacant lot.

 

[Zoe]

Lee 's post might be along the lines of fannie guideline, (will have to re read it )

WRT treating for assignment purpose the HBU of the excess lot as value in use ( as long as encumbered under one mortgage ) Which I agree with btw - but fact remains the excess lot as a stand alone vacant lot might have a higher $ value then it's contributory (value in use ) as conveyed together with dwelling - which still does not mean check NO on first page for HBU !

Because the HBU of lot as vacant is for analysis purpose to reconcile with its contribution to the whole - since the whole of two properties is subject of the appraisal assignment and thus what the HBU question pertains to on page one.

Imo, I would bet most of these lots don't have much of a higher value if sold alone because if the demand was there, why isn't it being sold that way? In the ones I have done and seen at least, the adjacent lot sat there for years. If the demand is there to buy as a stand alone vacant lot to build , then the subject buyer purchasing it with a dwelling would have to compete with that and offer the same price to seller of the vacant lot.

You can do that but you are breaking H&B use definition and MVO without a hypothetical condition.

 

[J Grant]

You can do that but you are breaking H&B use definition and MVO without a hypothetical condition.

No HC allowed in res lending URAR forms... HBU definition applies to the property package, so there is no contradiction there imo.
Anyway I better get back to my report...

 

[Zoe]

Client (lender or whoever) could save you on assignment conditions.

 

[Zoe]

Need to change value definition in that case. If you eliminate H&B use.

 

[Zoe]

Use value definition would work.

 

[Zoe]

Ok J, look at it this way. Assume a house in a neighborhood with 4 or 5 different lots that they bought separately? What is H&B use? Market value opinion? Your putting an assignment condition in if you say they have to be sold together. BE very specific on H&B use on market value opinion and assignment conditions.

 

[Zoe]

Box on page 1 could still be checked no on ASSIGHMENT OONDITION for MV opinion and H&B use.

 

[Zoe]

I don't think gse will purchase a loan where box is checked no on H&B I may be wrong.

 

[Zoe]

If I have 20 lots and it is maximally productive with house combined, H&B use is checked "yes".