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UW wants condition changed to Average.

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Lee SW IL

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Inspected a property in mid-December. This was to be COD.

Owner was to bring me a check for the report before it was to be submitted. After a 2+ week delay the LO sent me a statement that he would pay for the report out of closing, and if it didn't close he would send the payment.

The values of SFR range from $50,000 to $200,000 in this market, with $100,000 predominate. Appraised value $60,000 Only sales below the subject value are foreclosed homes.

Property has cost to cure issues, vinyl siding not complete, no gutters, downspots, damp basement, unfinished interior trim around windows, floors without covering, 1 room totally unlivable, ect. So I rate the property as fair, due to the current conditions of the property.

LO calls today, and stated the UW needs the property changed to reflect condition as "AVERAGE". I started to explain this property is at the lower end of values in this market, and that the property is in fair condition for this market. Please see photos in the report. Before I finished he hung up on me.

What would you do at this point?
1 Nothing, at this time, but wait for due date of payment?
2 Email the him and finish explaining the reason. Even though it is explained in the report?
3 Anyother sugguestions?

Any chance I'll get paid? :evil:
 

Mike Simpson

Senior Member
Joined
Jan 30, 2002
Lee-

Don't you know the rules?

Properties are always to be Average, Above Average, Good, Very Good, Excellent or Luxury, but never "Fair."

Additionally, you may find the following information helpful: Never state that a property is in a Rural area, it's always to be Suburban or Urban, and whatever you do don't mark the Slow box for Growth Rate, the Declining box for Property Values, the Over Supply box for Demand/Supply or the over 6 month box for Marketing Time. Land Use change "Likely" might pose a problem too.

I've obviously posted my preceding remarks tongue in cheek, well sort of. You'll get nothing but grief from the lender if you do mark those boxes.

In regards to being hung-up on or being stiffed for the appraisal--welcome to the club, it won't be the last time.

If you don't get paid you could always file complaints--not a lot of fun, but you've few alternatives if you want your money. Of course the L.O. & Lender will do everything they can to damage your reputation and "blackball" you. I'd bide my time & file an anonymous complaint down the road--to many persons & entities (that way something might get done).

-Mike
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Lee,

Repeat after me: "Underwriting problem, not appraisal problem". There is a deal for this property, it just isn't the 'No Doc/125% LTV' program for "A" properties. If this guy were ready to do his job professionally, he'd find a more appropriate program for his borrower and actually earn his brokerage fee.

I'd write a letter recounting the conversation and finishing your explanation. Send the letter via snail mail. Keep a copy for your file. Let the invoice ride for now. If the appraisal ever becomes an issue later, you will have a cogent explanation at hand.

In your letter, I'd pass on the little gem that even if you did color the truth in this description that it would get caught in review. Then you, your client and his borrower would all end up looking a little crooked and there wouldn't be any deal anyway. I'm assuming you included some photos in your report to back up your description. It doesn't take a master sleuth to compare photos to written descriptions. Of course, the kind of client who would ask you to basically lie about the subject property would also pull the offending photos from the report without your knowledge or consent.

It's amazing that these guys don't consider how bad they end up looking when they get caught at this stuff. If I were you, I'd be somewhat careful in dealing with this guy in the future. If they're willing to lie to the lender so they can make an easier commission, they'll do the same or worse to any of their vendors.

George Hatch
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Lee, sounds like the old LO tactic of “the UW wants”........ just to see if he can get it. You can your bet your bottom dollar that the UW did not really ask for that, but the LO is looking at a lost commission. If it makes you feel better, you have helped get the LO off the hook with the HO. He can NOW tell the HO “the appraiser killed the deal”. :roll:

Too bad he hung up on you. I would have axed for the request in writing. :wink: :evil:
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
On second though, you may not have killed the deal. The LO will probably shop around for someone to play ball..... then submit "the best one" to underwriting.

Make notes of the conversation in your files, wait for the check...... it WILL not be paid.... so plan on going to small claims court.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Sure, change the property to "average", but make it subject to repairs and a final inspection. :)
 

Travis McGee

Senior Member
Joined
Sep 18, 2004
Change the grid to "average p.o.c." and when he calls back to ask what p.o.c is , tell him its an "average" piece of crap house.
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Tim, great answer. The stupid idiot LO probably would have got exited and thought you are doing him a favor.
 

Tim The Enchanter

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
How about average except for deferred maintenance, needed repairs, functional obsolesence.... :lol:
 
B

Bemis Pownall

Guest
Tell them its above average compared to the home that burnt down next door.

:drinking:
 
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