Ted Martin
Senior Member
- Joined
- Jan 17, 2002
- Professional Status
- Certified General Appraiser
- State
- Kansas
I just got a copy of the sales contract for an appraisal which has an addendum which reads.
"The Seller agrees to pay a fee of $2981 to Community Housing Assistance Program (CHAPA). The fee will be paid by and through the closing agent.
The Seller is only obliged to pay the fee if the Buyer recieves assistance of $2061 from CHAPA and this transaction closes.
The seller and buyer understand that CHAPA's fee will not be used to provide downpayment assistance to the buyer of this property, but will make it possible for CHAPA to provide assistance to other homebuyers in the future.
The assistance provided to the buyer will be from CHAPA's own funds that pre-exist this transaction."
The list price on the MLS for this property was $65,500 and the contract price is $68,704.
Needless to say the listing agent called in a panic before the order even came over because she was afraid it wouldn't appraise. Gee I wonder why she was worried?
The order shows up and on top of everything else it's an FHA so I call the lender and talk to the loan officer who transfers me to the underwriter to explain who and what CHAPA is. The underwriter goes on to tell me that she wished she could use one of her local appraiser's because they do these all the time, and it's such a great deal for people with really good credit but no down payment money. Looks like a great program to me also, if I was CHAPA and got to pocket the $900 in transaction fee, and the buyer who gets the house with 100%+ financing, and the seller who gets to pocket a full price sale, and the lender who gets to make the loan, and the agents who get a higerh commission.
The only wrench in the works is ME. The underwriter also tells me that HUD doesn't have a problem with these deals and that I don't really have to bother calling them for clarification since it's not thier program.
I guess if I was without morals, ethics, was blind and STUPID I'ld just make everyone happy and rubber stamp this deal.
But, I'm not, so I'm going to go look at it and find the best comparable sales I can and let the numbers fall where they will.
I wonder if I'm suppose to overlook the leaking toilet that's mentioned in the contract too?
"The Seller agrees to pay a fee of $2981 to Community Housing Assistance Program (CHAPA). The fee will be paid by and through the closing agent.
The Seller is only obliged to pay the fee if the Buyer recieves assistance of $2061 from CHAPA and this transaction closes.
The seller and buyer understand that CHAPA's fee will not be used to provide downpayment assistance to the buyer of this property, but will make it possible for CHAPA to provide assistance to other homebuyers in the future.
The assistance provided to the buyer will be from CHAPA's own funds that pre-exist this transaction."
The list price on the MLS for this property was $65,500 and the contract price is $68,704.
Needless to say the listing agent called in a panic before the order even came over because she was afraid it wouldn't appraise. Gee I wonder why she was worried?
The order shows up and on top of everything else it's an FHA so I call the lender and talk to the loan officer who transfers me to the underwriter to explain who and what CHAPA is. The underwriter goes on to tell me that she wished she could use one of her local appraiser's because they do these all the time, and it's such a great deal for people with really good credit but no down payment money. Looks like a great program to me also, if I was CHAPA and got to pocket the $900 in transaction fee, and the buyer who gets the house with 100%+ financing, and the seller who gets to pocket a full price sale, and the lender who gets to make the loan, and the agents who get a higerh commission.
The only wrench in the works is ME. The underwriter also tells me that HUD doesn't have a problem with these deals and that I don't really have to bother calling them for clarification since it's not thier program.
I guess if I was without morals, ethics, was blind and STUPID I'ld just make everyone happy and rubber stamp this deal.
But, I'm not, so I'm going to go look at it and find the best comparable sales I can and let the numbers fall where they will.
I wonder if I'm suppose to overlook the leaking toilet that's mentioned in the contract too?