Unsigned Contract/uad Hard Stop?

[KYLECODY]

I am working on a short sale, the actual contract is between the buyer and seller. Then they need to get the Bank to agree and fill out the short sale agreement.

I have the signed contract between buyer and seller but only an unsigned copy of the agreement from the Bank..Someone is dragging their feet and it is not showing up. The client wants the report and I want it gone. Since I did review the actual contract I would think I can just state that I did review it and in the addendum state a copy of the final short sale agreement was requested but not delivered in a timely manner and use EA's that the signed price/terms are the same as the unsigned copy. The client is stating it won't get through UAD and is worried it may come back on me. I'm really not worried. Ideas other than sit on it until the Bank sends a copy of their short sale agreement?

 

[Terrel L. Shields]

Personally I don't worry about signatures. I scan and put the contract in the report and say the Offer and acceptance is unsigned. And if that's a problem then it's their problem, not mine.

 

[J Grant]

I would do as you suggested, describe the signatures, dates and status of contract you have now just as you described here and finish the appraisal. If a final signature is provided later they will ask you to update the appraisal at that point.

Some clients ask you to appraise subject to final contract so ask client if they need it that way or as is, describing contracts you have now. USPAP says reasonable efforts made to obtain contracts in normal course of business and describe them.

 

[DWiley]

I analyze what I am given. Part of that analysis may including commentary regarding signatures.

 

[HF Mudd]

Agreement and ratification by ALL the parties is an element of a contract. A contract without all required signatures is not a fully executed contract - perhaps a contingent offer and a continent acceptance?

That said, review of a fully executed contract is NOT a requirement of the appraisal. Just disclose what you have and the steps you've taken to obtain a fully executed contract. The rest is a lender issue, not an appraisal issue.

 

[glenn walker]

70% or more short sales are never accepted by the note holder . The agents put together a purchase contract and submit it and wait to see if the holder of the note agrees to the short sale. Most lenders DO NOT order the appraisal on a short sale until the underwriter has an executed copy of the lenders short sale agreement. In your case I would just state what you have and wait a few weeks and if the lender ever gets a signed copy they will be calling you every 10 minutes to amend the contract section of your report.

 

[Person of Noninterest]

I would not accept a purchase assignment with a UAD requirement unless a fully-executed (signed by both parties) sales contract was provided by the ordering company at the time of engagement.

 

[J Grant]

Where is a fully executed contract a UAD requirement? Perhaps I missed that somewhere?

In any event, a fully executed contract is not a USPAP requirement, USPAP says analyize any agreements, contracts of offers, make efforts to obtain contracts and report what efforts were made.

Certain loan programs require a fully executed contract from the LENDER before they will fund. That still is not an appraisal requirement to develop a value, but the lender will make the appraiser amend the CS section when the missing signature comes in at whatever time that happens post appraisal delivery.

 

[Peter LeQuire]

I may be mistaken, but there is no contract between the buyer and the existing lien holder: the short sale agreement is between the owner/seller of the property and the lender, the lender agreeing to accept less than the amount owed or, alternatively, accepting some sort of payment arrangement with the seller and agreeing to release the existing lien. The fact that the sale is "short" ought not affect the appraisal. It is something that needs to be analyzed

 

[HF Mudd]

If the buyer and seller agree that their transaction is contingent upon acceptance by the current lienholder, is it a contract before such acceptance? I don't think so, but then again I'm not a lawyer, nor do I play one on TV.