Tenant occupied - Lender wants me to check "owner occupied".

[glenn walker]

This is were the problem begins ** The appraiser is not an underwriter and once he/she steps into that position things can change very quickly. Example The original poster made the statement that the person who met him at the property had limited skills in English ( IE NOT THE OWNER PROBABLY A PROPERTY MANAGER ) even if this is correct it does not make the appraisers case very solid and the owner could claim discrimination based on this alone!. Second nobody likes appraisers and the appraiser now has three parties who are out to attack his/her credibility . The owner , the lender and the person who let him/her into the property and says that person has limited English or language and therefore is probably a property manager or a tenant? (MY) point was simply that the appraiser has to be very careful to NOT make assumptions based on no facts. My father had 9 brothers and sisters and my mother had 13 . My fathers family lived in a 900 Square foot home and my grandfather lived in a 1 car garage. They were not tenants just flat broke. My mothers father died when she was 7 years old and my grandmother raised my mother and other 12 kids in small apartments and If this appraiser today came to there house he/she would assume they were renting rooms but in reality that's how some folks survive. My point is and was simply let the lender determine and have the borrower state and sign the loan documents and application if he/she is the occupant. Once the appraisers steps out of this box he /she is opening up a potential liability issue that could cost them dearly . IN SUMMARY AT THIS POINT I WOULD RECOMMEND THE APPRAISER CONTACT THEIR LEGAL DEPARTMENT AT E & O COMPANY AND ASK FOR ADVICE. The original question has gone way beyond and above advice a forum can give. ALSO I would recommend to the original poster to NOT make comments or statements that could be taken out of context and used in discrimination cases LIKE LIMITED ENGLISH I have been asked about things i have posted on forums by attorneys in the past so what ever we post on the internet can and will be used against us.

 

[Joyce Potts]

I wonder why they want you to check owner occupied?

 

[Terrel L. Shields]

Send me an affidavit, with notary seal and proof of filing with the county. I'll do it and include the affidavit in the report. Based upon ....

 

[Peter LeQuire]

I wonder why they want you to check owner occupied?

Because owner occupied/second home loans are made on more favorable (rate and LTV) terms than inverstor/non-OO loans.

 

[J Grant]

Our engagement is to appraise the property , I HATE that we are put in these positions of going doing legal work for a lender. The lender should get notarized sworn statements from their borrowers about occupancy. Whatever occupancy opinion you provide, run it past lender to see what information they have on it, then document everything known and observed and recommend client/users confirm occupancy with the borrower.

 

[huntercharlie]

If he's claiming it's owner occupied, check Realist (or other assessor's data) for his $7000 Homeowner's Exemption. Won't apply if he's claiming it's a second home.

Roll Values
Land 156768
Structure 329213
Fixtures 0
Growing 0
Total Land and Improvements 485981
Manufactured Home 0
Personal Property 0
Homeowners Exemption 7000
Other Exemption 0
Net Assessment 478981

 

[Joyce Potts]

Because owner occupied/second home loans are made on more favorable (rate and LTV) terms than inverstor/non-OO loans.

You are correct, Pete LeQuire.

 

[George Hatch]

Just put the comment in

"The borrower reports that they occupy the property. In lieu of information to the contrary I assume that disclosure is factually accurate."

Which of course, is all you really know, anyway. You already have pics showing the property is occupied so its apparent it isn't vacant. Anyone who is actually reading the report can decide for themselves the extent to which they want to follow up on the occupancy.

 

[Noreen]

I've seen plenty of cases where applicants are actually getting prosecuted and going to jail for fraud on Mortgage applications....

I took a course a few months ago and of the fraud that was found in the defaulted loans, it was quoted that 85% of the fraudulent documentation was via the borrower, 15% "other"....

 

[Joyce Potts]

Why is this an appraisal question in the first place? Are we supposed to check driver's licenses of the people we meet at the inspections? There's a reason many lenders have borrowers sign owner occupancy affidavits. That shoud be good enough. Factor in the hypocrisy of lending guidelines not wanting 'people' in photos, what exactly is within the SOW for as to the inspection and occupancy verification? Not to mention that many unoccupied homes are 'staged' for sale with furnishings.