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tenant occupied/owner occupied

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larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
Appraised a property a few weeks ago that was tenant occupied. We were told by the borrower that lives about 200 miles from Reno that it was tenant occupied and how to contact the tenant. Submitted the report & then the calls started. First from the lender wanting us to be sure that the occupant was a tenant. Told them the whole sad story. Yes it was tenant occupied because the borrower told us so and we couldn't access part of the daylight basement because the owner was utilizing the space for storage. Another week passes & the borrower calls today & wants us to go back to the house to see that the tenant is gone because the loan won't go through with the house tenant occupied. I'm sure the lender will be calling soon. Tell me I'm crazy, but, this doesn't sound like my problem. I can't imagine how I would verify that the tenant was gone without becoming a private detective. Has anyone had an experience like this before?
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Larry,

"As Is" appraisal? On the inspection date it was tenant occupied .. leave it at that .. reinspection? New fee .. verifying that tenant moved? Call the power company and see if the utilities have been changed .. (or suggest lender do that ..)
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
This has happened to me. I called the power company and water company and asked who's name the utilities were in.

The other check would be to print the tax department data. Where does the bill go?

It is not that the loan wont go through, it is that the loan wont go through with the LTV the borrower wants.

I have dealt with an owner who has all utilities in his name and all tax bills going to his name at the "rental" home address. Then he meets you at the property and says..yes, this is my primary house, just moved in a few weeks ago.

Good luck. Let us know what happens.
 
B

Bemis Pownall

Guest
Fannie MAe
Homeowner must reside there for 3 months

perhaps do it subject too..

we get these stupid requests all the time. I take interior picures for these..esp. when its vacant and they want it owner occ.

:icecream:
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
This is not an appraisal problem, it's an underwriting problem. The appraiser merely reported the occupancy as of the effective date of the appraisal. This is a statement of fact that appears to have been established and corroborated by all of the parties involved as of that date. For a borrower or client to ask an appraiser to falsely report a condition they know to be false is reprehensible, regardless if if affects the final value opinion or not. This is a request for the appraiser to conspire to defraud.

The real problem here is that the client and the borrower are trying to encumber the property with a loan package for which it does not qualify, and they want the appraiser to help them do it. Those rules are in place for a reason, and it is not the appraiser's place to decide when those rules should be ignored.

It is interesting to note that the only party in this with anything to lose is the appraiser, as they are the licensee charged with impartially and professionally reporting the facts. The client is asking the appraiser to do the dirty work and to take all the responsibility. You know that if and when this comes to light the client will point the finger of blame at the appraiser and disclaim any knowledge or responsibility in this conspiracy.

If the borrower wants to change the answers and the client wants to believe them then that's between them. The appraiser should not be getting involved any further. It is not the appraiser's job to provide proof of occupancy or identity, only to observe and report within the confines of due diligence for appraisal purposes. Appraisers who roll over for something like this are only hanging a "WELCOME" mat on their back. Having rolled over once, they can expect to be a doormat for every dirty deal that comes down the road.

I'd hang tough. Let the client and the borrower do all the fast talking, they have nothing to lose. This is all about CYA.


George Hatch
 

jtrotta

Senior Member
Joined
Jan 16, 2002
George

really good answer, and I would agree that your responsibility for the appraisal ended when you sent it in. The question's that arise thereafter are called "stips" and actually have nothing at all to do with your job. They are UW quirks to see how much they can get the appraiser to dance :roll: , stand tough and ask for the questioners valid "Certification number or License" number so you can verify it with your local State Consumer Protection Dept. (Commissioner of Appraisal Licensing) - in writting please.

All will go away faster than you can say, jack splat ate the cat 8O :lol:

8)
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Repeat after me....."It ain't my job!". Don't let them sucker you into doing it.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
George, I hope you dont mind that I have taken the liberty to change your post into a letter format that we can all save for future use.

Dear Underwriter

This is not an appraisal problem; it's an underwriting problem. I am merely reporting the occupancy as of the effective date of the appraisal. This is a statement of fact that appears to have been established and corroborated by all of the parties involved as of that date. For the borrower and you to ask me to falsely report a condition you know to be false is reprehensible, regardless if it affects the final value opinion or not. This is a request for me to conspire to defraud.

The real problem here is that you and the borrower are trying to encumber the property with a loan package for which it does not qualify, and you want me to help you do it. These rules are in place for a reason, and it is not my place to decide when those rules should be ignored.

It is interesting to note that the only party in this with anything to lose is me, as I am the licensee charged with impartially and professionally reporting the facts. You are asking me to do your work and to take all the responsibility. You know that if and when this comes to light you will point the finger of blame at me and disclaim any knowledge or responsibility in this conspiracy.

If your borrower wants to change the answers and you want to believe then that’s none of my business. I will not be getting involved any further. It is not my job to provide proof of occupancy or identity, only to observe and report within the confines of due diligence for appraisal purposes. If I roll over for something like this then the door is wide open for you to expect me to be a doormat for every dirty deal that comes down the road.

I am not changing anything.

If I can be of further help please feel free to call.


Sincerely

Appraiser


CC: Bank President, State Banking commission
 

Pine Tree

Junior Member
Joined
Aug 19, 2002
Professional Status
Certified Residential Appraiser
State
Maine
Completely agree with all the previous posts. I was once asked if I had noticed if the borrowers clothing was in the closet! The borrower showed me the house, stated he lived there... and they wanted to know it those were HIS clothes in the closet? good grief! I strongly suggested they ask him .. I appraise real estate.. I'm not sure what disipline identifies ownership of clothing... There is no end to the sillyness! I guess we should laugh raucously when they make these requests and move on!
Peace! W :wink:
 
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