sqft in 2055 exterior only

[Lee Lansford]

I've never seen the previous appraisal and of course it's not part of public records. The intended use is 'to assist the client in making an underwriting decision regarding the subject'. Its scope of work is a drive by exterior only inspection of the subject and all the comparbles.

By the way I don't have E&O since it's not required here in Texas. I guess I'll have to handle it all by myself. All suggestions are helpful.

Thanks.

Get a lawyer.

 

[TJSum]

1- As others have said, let a lawyer handle this, they will know what to say and what not to say in your response letter.

2- Hello, the borrower was not your Client, the Mortgage Company was. Didn't they sign their purchase contract prior to your appraisal? The Mortgage Company is the one who determined a drive-by inspection only, so that they could save a few bucks.

3- OTOH, if your subject was vacant during the contract phase with no fencing or other external factors to inhibit you actually measuring the subject, if you did not get out of the car and at least do some external measurements, that would be extremely hard to defend. When doing a drive-by we should get as much data as possible first hand, not use it as an excuse to do the minimum.

4- What previous appraisal? Your assignment was for the borrowers purchase of the home, why would there be a "previous appraisal" for these borrowers? If the seller is providing an older report, what is their role in all of this?

 

[Randolph Kinney]

Just thinking out loud, you did this 2055 appraisal for a purchase that happened last year.

Have you check the prices for comparables in today's market? Has the value declined by $86,000? If the 3400 GLA is used instead of the 3900 GLA, is that sufficient to cause $86,000 of appraised value change?

Since a 2055 is used for a valuation when a low LTV, low DTI and good FICO score qualifies the borrower by the lender, isn't this a SOW issue that the lender determines with the appraiser? Do you have an appraisal order by the lender?

Who was the lender on the prior appraisal before purchase? Was it the same lender that made the loan for purchase?

Make sure your work file contains all records and documentation of what you did to produce the 2055 appraisal.

Since you don't have E&O, you best get a competent attorney in the matters of real estate.

 

[Lee Lansford]

...
By the way I don't have E&O since it's not required here in Texas...

E&O insurance is not required (as a state requirement) anywhere that I am aware of.

When this is all finished, please re-visit here and let us know if not having E&O insurance was a good decision or not.

 

[Hamlet]

Just thinking out loud, you did this 2055 appraisal for a purchase that happened last year.

Have you check the prices for comparables in today's market? Has the value declined by $86,000? If the 3400 GLA is used instead of the 3900 GLA, is that sufficient to cause $86,000 of appraised value change?

Since a 2055 is used for a valuation when a low LTV, low DTI and good FICO score qualifies the borrower by the lender, isn't this a SOW issue that the lender determines with the appraiser? Do you have an appraisal order by the lender?

Who was the lender on the prior appraisal before purchase? Was it the same lender that made the loan for purchase?

Make sure your work file contains all records and documentation of what you did to produce the 2055 appraisal.

Since you don't have E&O, you best get a competent attorney in the matters of real estate.

Good points.

How did their attorney arrive at 86K damages?

Lee's point is good as well, Ohio doesn't require you to carry E&O that is the lenders requirement and IMO just good biz sense.

Please heed everyone's advice and get a good RE attorney and yes please do come back and tell us what happens.

Best wishes to you.

 

[JENIFFERW]

One other thing you might do...If the house is vacant now, I would go measure it

 

[Abester]

Just tell him you can't talk to him - he's not representing the client. The borrower didn't complain when they were taking the extra money. Have him sue the Realtors - they have more money... And have a nice day...

 

[Webbed Feet]

Just thinking out loud, you did this 2055 appraisal for a purchase that happened last year.

.

Not to be a featherhead again, but would somebody please quote the post where the O.P. said the SOW involved a sale of the subject property?

Webbed.

 

[Mr Rex]

Hi,

I just got a letter from a lawyer. He said I intentionally or negligently misrepresented the size of the house his client bought last year. I checked the appraisal I did for this purchase. Since it's a 2055 exterior only appraisal, I didn't need to measure the house and used the data from the county appraisal recores and MLS listing. Based on the country records and MLS listing it's 3,900 sf, which I used in my appraisal. But in the letter he said it's 3,415 sf based on the previous appraisal and I should have known it. In fact, I have never seen the previous appraisal and didn't know it is 3,415 sf. I'm very unhappy about this because the lawyer was making false statement. Should I lodge him a complaint?

Thanks.

Xiaomei

Maybe this part

 

[Webbed Feet]

Maybe this part

I must be getting glazed over and should have stayed at recess longer...

P.S. As I have said, more lawsuits are filed over GLA measurements regarding SFR work that any other item. It's not enough to say what you did in a report, you also have to say what you did not do. And it is from here on out that residential appraisers that have been using the 03/2005 2055 form start finding out just how hazardous it is to their financial health. I sure hope the wittle tiny fees they earned for such assignments were worth it.