SFR, ADU, JR ADU

[Fernando]

I mentioned the odd ball ADU property (SFR, legal ADU, and illegal ADU).
First time I did it I called it as I saw it.
A year or two later, property was refinanced and I thought it was ezy pzy with my cloned report.
Yet this time lender wanted the illegal ADU to be upcapped and I called it a SFR and legal ADU.
Maybe ADUs are evolving with how lenders view them over the years.

 

[glenn walker]

He's currently on hold with ACI Tech Support asking their opinion. Lol )

 

[Surf Cat]

Check FNMA website. Anything with more than one ADU is to be completed on the 1025 form, up to 3 ADUs. After that its commercial. The extra ADUs are the wave of the future and you need to know what to do with them from an appraisal standpoint.

That's only if each unit is independently livable and meet the criteria for multi-family classification.....

If you recall the previous threads that ZZ started on this very dilemma, 1....maybe 2 ADUs are not permitted.

Think about it, as I stated above, why do you think this assignment hasn't been done yet...... for months? Even with the increased fee.

Run away and live to fight another day.

 

[Surf Cat]

Maybe ADUs are evolving with how lenders view them over the years.

No..... they just need a dumb licensed appraiser to sign it so they can loan on it. If the stuff hits the fan, the appraiser takes the fall.

 

[glenn walker]

My

That's only if each unit is independently livable and meet the criteria for multi-family classification.....

If you recall the previous threads that ZZ started on this very dilemma, 1....maybe 2 ADUs are not permitted.

Think about it, as I stated above, why do you think this assignment hasn't been done yet...... for months? Even with the increased fee.

Run away and live to fight another day.

My guess is he got himself into a corner and lender either can't sell it to GSE or their Investor kicked it back after a Post Funding Review for not meeting guidelines. Now they are panicked and want a new one they can try to unload on some another investor.

We had **** like that where it didn't get caught by the Underwriter and we funded and sold the loan only to have it come back months later with a buy back letter. Sometimes we ended up holding and servicing the non conforming loan.

 

[Sadie]

That's only if each unit is independently livable and meet the criteria for multi-family classification.....

If you recall the previous threads that ZZ started on this very dilemma, 1....maybe 2 ADUs are not permitted.

Think about it, as I stated above, why do you think this assignment hasn't been done yet...... for months? Even with the increased fee.

Run away and live to fight another day.

Not permitted and not livable are 2 separate things. Check the website for non permitted work. Also, you need to check code for the impact of non permitted work on EMV. Of course its much better if its permitted.

 

[Surf Cat]

Not permitted and not livable are 2 separate things. Check the website for non permitted work. Also, you need to check code for the impact of non permitted work on EMV. Of course its much better if its permitted.

Okay, you win.

Hey ZZ, Sadie's going to help you with this assignment and cosign.

 

[Sadie]

Okay, you win.

Hey ZZ, Sadie's going to help you with this assignment and cosign.

Oh heck no, these things are a bear to figure out and no one wants to pay you enough.

 

[Terrel L. Shields]

So ask them

Yes, find out what the lender wants. If the lender insists you can do it for FNMA get the selling guide and include the language in the report saying it does not meet FNMA requirements. Otherwise, if this is a non-conforming conventional loan at a bank, then there is no problem valuing it. I don't recommend the URAR form - as it seems limited to 2 units but whatever.

It is important to find out WHAT rules apply first.

 

[Tom D]

it important to know when not to do the stupid, whatever appraisal issue it is. If your E&O thinks, even a little bit, you did it fraudulently. They will not defend you. This is a perfect post on an existential threat.