• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Tell me again about John Doe and FHA.

Status
Not open for further replies.

Joe Sloan

Sophomore Member
Joined
Feb 17, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Dear FHA Guru types-

I have been asked to complete several FHA appraisals on proposed construction. They are manufactured homes in a neighborhood of other manufactured homes. They want to know the appraised value before putting a buyer under contract.

My effective date will still be date of inspection. They have not sent me case numbers, and have asked for a John Doe appraisal. Once they have a buyer under contract it sounds like a future update of some kind.

What is the best way for the developer/lender to structure their appraisal request and what are my options to complete an FHA appraisal on a John Doe proposed construction? Pitfalls for me?

Thanks,


Joe Sloan

P.S. I do manufactured homes currently, and don't need any comments on manufactured homes unless you think of a reason they would be different than site builts, other than the usual differences we all know and love. (foundation, sequential tags, original placement etc...)
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
There is no borrower and I would state such. Such as, in the place where the borrower name would go I think I would put something like: "No Borrower at this time"

Your Scope would explain that:
This appraisal was completed for the current owner and lender to prepare to market the property for a potential future sale using FHA financing and is prepared according to the FHA Handbook 4150.2.

Just my opinion. I'll look forward to others.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I will not do an FHA without a case number...period! You can do an appraisal for the client for potential new client. Just do it in the name of the person ordering the appraisal. Once they have a contract, convert to FHA once they provide you a case number.
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Joe,

Pam has it exactly correct-define it as she has stated in your Scope of Work. You have been asked to prepare appraisals to FHA requirements but as you stated, they may not end-up at FHA because you don't have an FHA Case Number to make it an official FHA appraisal request. I would also NOT list FHA/HUD as one of the Intended Users of the report and I would clearly state under Intended Use that the reports are not to be used for FHA/HUD mortgage insurance until a case number is assigned.

I would place this information in CAPS in the Reconciliation section of the URAR for the reader to see.

In the old days, these were called "Sponsor Appraisals." No borrower was listed on the appraisal request. All that was requested was a market value. The owner would call a mortgage company, ask for an FHA appraisal, pay the fee and the mortgage company would get the FHA Case number and request the appraisal. I don't think it would be any different today- a "sponsor" appraisal is still possible.

Now as to why the builder wants this method of operation is very clear..he's either clueless as to what his packages are worth (unlikely) or he's shopping for values to put the deals together (likely.)

When he gets the values he wants to make it fly... the case numbers will be assigned to that appraiser. In your scenario, value is the concern. Out here, it used to be repairs. Mortgage companies would order FHA's without case numbers with several appraisers on one home and then choose the one with the least repairs. They would assign the case number to that appraiser and then cancel the orders with the others. That's why FHA states not to complete the report until the case number is assigned.

Get your money upfront..just in case the builder is not happy with the numbers you present.

Ben
 

rtubbs

Junior Member
Joined
Jan 15, 2002
Joe, who owns the land that the mfgd homes will be placed on? Will not the land value and location have an impact on the appraised value. Seems to me that you might be looking at the Title I program which is an entirely different appraisal procedure.
 

Joe Sloan

Sophomore Member
Joined
Feb 17, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Ron-

Texas changed law last year pretty much requiring new manufacturing homes to have permanent financing (most loans are FHA). The only chattel loans are for manufactured homes placed on rental property or parks, with few exceptions. Mfg. dealers in Texas sold about 70% fewer homes in 2002 than 2001 but almost every home now has to have an FHA or conventional appraisal by a certified appraiser.

Thanks for all the comments. Any additional thoughts are appreciated.


Joe Sloan
 

rtubbs

Junior Member
Joined
Jan 15, 2002
Joe, I guess I was asking how you can appraise a property for John Doe when John doesn't own a particular site the unit is being placed on. If you don't know who the buyer is, how do you know where the unit is being placed. Or do you?
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks