VA Pool Mpr

[NOGAVA]

Subject property has an in-ground pool that is adequately fenced and has a definite contributory value, under normal circumstances. The pool is currently drained and has a crack in the cement. Homeowner has received estimates for repair at approximately $1,500.

Report was completed 'as-is' with a cost to cure of $1,500. Market participants would likely find the pool desirable even at a relatively low cost of $1,500 to repair. This is a $500K-$1MM subdivision in North Atlanta. There does not appear to be a safety issue as the area is adequately fenced. But the pool is not functional in 'as-is' condition, which apparently is a VA MPR. Per Atlanta RLC, if the pool is not going to be fixed, the appraised value cannot include the pool. Per the U/W, the borrower does not have sufficient funds to fix the pool at this time. U/W is asking that we back out the value of the pool.

My question is how do you handle the pool then? The market says there's value even in 'as-is' condition, but the VA says nope...no value. Complete the report with a H/C that there is no pool and therefore no value? Doesn't seem to jive. Thank you for any insight.

 

[sandpiperapp]

If you attribute value, it must be repaired.

 

[NOGAVA]

I got that. And the repair isn't happening. So from a technical standpoint would you just address functionality of the pool with commentary and state a hypothetical condition that the pool is not to be considered in the appraisal as a scope of work issue?

 

[glenn walker]

If the borrower cannot come up with $1,500 that's a sad story .. No Value it will be a REO in 2 years : ) LOL

 

[Mike Garrett RAA]

The VA also tells us to use common sense.

 

[Eli]

Follow VA's instructions. You'll be fine. Those folks in Atlanta are sharp. If that pool is empty and not covered, that could be a different story. It could be a crack in my back or head instead of a crack in the pool.

 

[GA Benny]

Under VA, there is no requirement that the repairs be completed prior to closing. They can hold back some money in escrow to cover the cost of the repair and they have a 60 day window between the closing and the loan guaranty to complete the repair.

 

[Digger88]

if its empty pool should have a professional cover. we need handrails installed if a stoop has 3 steps then certainly an 8 foot hole in the ground will require a cover fence or not.