Underwriting wants me to "change" my report?

[Jennifer l. Smith]

I just received a call from an irate lender, says underwriting kicked my report and I killed their loan unless I change my wording. I wrote....
"There is a recently completed, permitted 32'x32' garage with concrete slab flooring, power, painted fire resistant siding, and metal roofing. There is an area above the garage, which is set to be a second home of approximately 1,536 square feet. The area was noted, however not counted in this appraisal report, as it is not completed or permitted. The garage feature in the subject home is not typical for the area; as most homes do not have garages. In the sales comparison process a minimal garage adjustment was made."
They want me to remove the part about the unfinished room. I was only reporting what I had seen on the property as I do in every report; I had no intention of "killing" a loan. Now I am left with a very unhappy lender (one who will no doubt switch to another appraiser after this), and a felling of frustration. I only disclosed what I observed and what was told to me by the home owner.

Is there anything I can do to help appease the underwriter and the lender without doing what they are asking? I'm not about to remove wording from my report ... but is there some way to ad an addenda that more clearly states what I said without killing a loan?

I was not speculating when I stated second home. The verbage acutally came directly from the homeowners mouth, " ....this area is going to be our second home, once we complete it; that's what this loan will be for, to complete the home and get it permitted." She said she was not sure what she was going to do with the original home... keep it for her mother, split the lot (which is feasible/legal/possible) or rent it out.

I did submit photos, both of the interior and exterior of the garage. I did not submit photos of the area above the garage because I did not weight this feature in the report. Should I have submitted interior shots of this area?

 

[Tom Woolford]

"which is set to be a second home"

I don't think it is our job to speculate how a space may be used in the future, let alone that its is to be used as a second "home". Accessory unit, mother in law suite, maybe. but it still does not exist. Observe and report, not speculate. It may never be completed.

I would report as a large unfinished attic and let it go at that.

 

[Randolph Kinney]

Ask the UW what are the policies that require the removal of your comments and descriptions of the subject.

Also ask that the UW put it in writing.

 

[c w d]

...what Randolph said....ask for the stips. This sounds suspiciously like a nervous MB request in the guise of the UW.

 

[TC]

I agree with Mr. W, how do you know it will be finished as living area?


TC

 

[Farm Gal]

Here's a hint - just describe what you saw -- inclusive of any stubbed in plumbing, interior walls, electrical wiring etc... If there are no interior 'improvements' indicating the potential for "a whole nother house of 1536 SF" then be careful describe what you DID see.

Agreed with prior posters that speculation is about as bad as using the "f" word - and in appraising that word (to be avoided at all costs) is Fraud.

Your comment(s) imply that the owner is intending to perpetrate a fraud upon the taxing and zoning authorities, which may leave the lender with an unmarketable property! So not only did ya blow the deal you insulted the heck out of the poor innocent Property Owner:new_newbie:

Apologise nicely, and reword the report to describe without ASSumptions. You can go into GREAT detail:icon_idea: in your descriptions and pictures are fer sure in order.... What the owner does after you leave is not YOUR lookout.

 

[CGgonnabee]

A picture paints a thousand words...I love photographs!

Are we the permit police? Shouldn't we get more$ for that?!:icon_mrgreen:

Permit police should at least get health insurance.

 

[c w d]

Is it speculation if the person that is building the structure tells you what it is going to be and you report what you've been told?

How is it we're able to conduct an appraisal on proposed construction? According to some of the explanations in this thread we shouldn't be able to describe the property as it is going to be.

Whether it is permitted or not is another issue in and of itself.

 

[Kevin Mc]

Is it speculation if the person that is building the structure tells you what it is going to be and you report what you've been told?

How is it we're able to conduct an appraisal on proposed construction? According to some of the explanations in this thread we shouldn't be able to describe the property as it is going to be.

Whether it is permitted or not is another issue in and of itself.

If the space is currently just any empty space it should described as such. Proposed construction is legally permitted with plans. There is no analogy. Describe what was there on the date of inspection. You are neither the zoning police or a soothsayer. Remove the "proposed second home" statement and everyone should be happy. It didn't belong there in the first place.IMO.

 

[Couch Potato]

Is it speculation if the person that is building the structure tells you what it is going to be and you report what you've been told?

How is it we're able to conduct an appraisal on proposed construction? According to some of the explanations in this thread we shouldn't be able to describe the property as it is going to be.

Whether it is permitted or not is another issue in and of itself.

We are able to do that based on a clearly stated hypothetical condition which must later be confirmed to have changed into a true statement for the loan to close as a regular loan rather than as a construction loan.

That unfinished garage area is just that, an unfinished garage area. Speculation by the appraiser on its future is not good practice IMHO.