VA manufactured appraisal with 2 separate lots

[Tim Hicks (Texas)]

If they could be joined why could they not be separated? Thats assuming if separated they would have their own HBU. Sometimes Lots are joined together because the one site may be to small to meet current minimum site area for a particular use, or any use. Sites like this have a name that eludes me at the moment.

I have also seen that done on larger properties. They own 15 acres, but survey out two acres and sell them separately, but there has to be no liens on the entire property or they have to get a new lien on the 13 acre surveyed lot size and three separate deeds. it happens in Texas quite a bit. Of course, there is a cost to make any of these changes. So, in your scenario, if a person has a house on 15 acres, why is the HBU not a house on 1 acre and 14 separate one acre lots? That's where I get lost on you guy's logic? Every state is different. Outside the city limits in TX there is no zoning, there are many things that can be done with parcels of land.

 

[Tim Hicks (Texas)]

Exactly and then someone is in front of the state board being told to take a basic highest and best use class.

When you change the physical characteristics of a property including legal description and/or lot size the HBU can change. That's like saying a 15 acre lot should be considered as 15 one lots because it is the HBU. There are many factors in HBU that can be changed by many different scenarios.

 

[valuecommando]

View attachment 46755

Does this mean that a hypothetical condition is used and the appraisal is completed based on the hypothetical condition that all the parcels are on one deed? Please describe according to this document VA pamphlet 26-7 chapter 12 what is meant by "subject to". What happens if the lender wants the appraisal as is?

 

[Carnivore]

Does this mean that a hypothetical condition is used and the appraisal is completed based on the hypothetical condition that all the parcels are on one deed? Please describe according to this document VA pamphlet 26-7 chapter 12 what is meant by "subject to". What happens if the lender wants the appraisal as is?

I just read over the reference. I know why the VA want it this way. They simply want one specific deed legal description to in include i.e. Lot 1 & 2. Thus the lenders closing agent has to prepare a deed with both lot 1 & 2 on that specific deed. This deed is then referenced in the Deed of Trust that will be prepared. This prevents the Borrower from selling off one of the sites at a later date without first satisfying the Deed of trust first.

Your Question is: What if the Lender wants an AS-IS Appraisal? Well To bad Mr Lender the VA won't allow that and if Mr Lender insist then the VA will not Guarantee the loan.

So how do you the appraiser deal with the Stupid lender(or there AMC Phone Monkey). You let them know the FACTS and Minimum Requirements and sit back and wait for them to figure it out.

If the Lender is worth a Chit, their UW will already know what the VA Requires.

 

[Carnivore]

The most technically correct way to tackle this is to provide two appraisals in one report. The improved lot and the vacant lot.

Assuming you're analysis that there is demand for the vacant lot for development purposes. Not an easy assignment. VA can be weird in how it favors the cause of the Vet.

Yes, I agree they can seem a little weird in how they do things. But you also know the Mandate of the VA is to knock down any walls, curves in the road etc to get the Veteran into a Home. They make it as trouble free as possible for the Veteran. Tidewater is part of that process.. They are more dedicated than ever now because of the Suicide Rate of Veterans. We all have our demons, including you. The Veteran organization I belong to(not the Legion or VFW) we had four of our members commit suicide during the Covid! Three put a bullet in their head and one hung himself. You know what I am talking about. Civilians think you had a Great job sailing the oceans of the World. I know better, its tough being coup up like you did for months on end out on the open seas. You and I lived in a different world inside our minds that few civilians can even begin to understand.

 

[2008 KC Royals]

I hate these assignments and I've had two for the VA recently. Called the VA on both, talked to multiple people, documented exactly what they told me and did exactly that. Still didn't seem right. While the VA is putting the two parcels on one deed, from my understanding they aren't requiring the borrower legally combine them.

 

[CANative]

Working on one now (not VA.) Order and legal came over for just one lot of 5+ acres. But I knew there were two other "lots" with two more AP#'s (one legal lot of record.) It took almost a week and the AMC/Lender fooling around and asking me "why do you need this information?" Finally, last night, they came up with a deed and legal from 1976 describing the boundary line adjustment and the three AP#'s. So I can now proceed with the appraisal - 12 acres, one lot, three assessor numbers. Needed that because their $30k solar PV system one not on the same AP# they were wanting reported and appraised.