Seller owner?

[andrew81]

It is not the appraiser's job to verify the purchase agreement. It is the appraisers job to analyze the provided purchase agreement and to summarize it's analysis.
Such as family sale, gift of equity, personal property, anything to inform the lender/client that the contract price is not arms-length.

It is often standard practice to discuss any difference between the contract price and the appraisers opinion of market value.

 

[Fernando]

Fernando did it again.
Being creative, I just went into the listing agent's website and able to find her disclosure packets with all the agencies, etc.
I saw the signature of seller and it matched the signature in the purchase contract.
The 1004 never said contract had to have name of seller.
The form just ask if seller is the owner and I found a way that they are the same. I'm good.

 

[andrew81]

If the provided contract does not have the Seller's Disclosure (usually does) it is available on the MLS. At least my local MLS always has it available.

My local regional board of Realtors uses Paragon MLS and the Seller's Disclosure is found under Specialty Views then Associated Docs.

 

[Mike Ault]

Fernando did it again.
Being creative, I just went into the listing agent's website and able to find her disclosure packets with all the agencies, etc.
I saw the signature of seller and it matched the signature in the purchase contract.
The 1004 never said contract had to have name of seller.
The form just ask if seller is the owner and I found a way that they are the same. I'm good.

After the conscientious effort you put into that project I believe your dog will use the potty pad tonight! I'm afraid it might relapse when you go out measuring tomorrow though.

 

[Fernando]

After the conscientious effort you put into that project I believe your dog will use the potty pad tonight! I'm afraid it might relapse when you go out measuring tomorrow though.

This discussion really helped in forcing me finding a way how to deal with this issue.
The easy way was to check no and give an explanation why I said no.

 

[andrew81]

Is it tenant or owner occupied?

A few weeks ago I did a lender refinance appraisal. The point of contact said her father Greg would be at the property.
Get there and met Greg. When asking about updates he said he doesn't know because the property is owned by his daughter and he is a tenant.

On the 1004 I mark tenant occupied. After sending the report, a few days later the lender/client sends me an email:
"I was looking at the appraisal and the occupant status is marked tenant instead of owner. I just wanted to verify why the owner box was not selected."

I reply "The point of contact said her father Greg would be at the property. Get there and met Greg. When asking about updates he said he doesn't know because the property is owned by his daughter and he is a tenant."

A few hours later the lender/client replied "I've contacted the owner. She lives there and her father stays there on occasion."

Print the email to pdf, save it to the workfile, change the report to owner occupied, include the revision request in an addendum to the report, and send the revised report to the lender/client.

 

[Terrel L. Shields]

Doesn't make a hooie and a half hitch

 

[Mike Ault]

Is it tenant or owner occupied?

A few weeks ago I did a lender refinance appraisal. The point of contact said her father Greg would be at the property.
Get there and met Greg. When asking about updates he said he doesn't know because the property is owned by his daughter and he is a tenant.

On the 1004 I mark tenant occupied. After sending the report, a few days later the lender/client sends me an email:
"I was looking at the appraisal and the occupant status is marked tenant instead of owner. I just wanted to verify why the owner box was not selected."

I reply "The point of contact said her father Greg would be at the property. Get there and met Greg. When asking about updates he said he doesn't know because the property is owned by his daughter and he is a tenant."

A few hours later the lender/client replied "I've contacted the owner. She lives there and her father stays there on occasion."

Print the email to pdf, save it to the workfile, change the report to owner occupied, include the revision request in an addendum to the report, and send the revised report to the lender/client.

We don't know if there is an enforceable lease agreement in that situation or not. It certainly appears that the borrower has ceded control over the collateral for the loan to another party. That's what some attorney would say. Big difference in interest rates between "owner-occupied" versus "tenant occupied". If I was the compliance officer at the bank I would make the daughter show me utility bills in her name at that address. Occupancy fraud used to be a big deal, haven't heard much news about it lately though.

 

[andrew81]

Report what is known. As of the effective date. Follow the Record Keeping Rule.

Any changes should be reported on an addendum.

 

[glenn walker]

I can read the contract. For some reason (first time ever), the seller name is owner of record.

Normally the seller is owner of record --get back on your Med's : )