What form? 1004 REO

[Elliott]

When an AMC says they want a 1004 REO, what REO form do you consider it requires? There are at least 3 possibilities. Why do appraisers have to guess?

 

[Mr Rex]

1004 and REO addenda. Unless they specify, they get the REO addenda without adjustments. More than 3 don't you think? What about UAD or not?

 

[Eli]

1004 and REO addenda. Unless they specify, they get the REO addenda without adjustments. More than 3 don't you think? What about UAD or not?

Removed post due to being over the top post. Me and Mr.Rex may have been the only ones that could handle it. And I haven't even had any egg nog.

 

[Elliott]

I did the 10 question one and the lender said, "No, the other one with a grid.". So I used it and said see Comps 5 & 6 and there isn't a good 3rd listing.

 

[residentialguy]

What is the specific intended use???

I'll bet ya money that they need liquidation value, if they want the REO sup.

I just finished one. I verified that they needed the appraisal to aid them in collateral analysis for marketing decisions as a distressed REO sale.

No 1004, no REO addendum. A liquidation value form is needed.

 

[J Grant]

Please don't listen to Res Guy on this, he is virtually the only one who does it this way, assumes a client "needs" liquidation value when the client ordered a 1004 requesting market value opinion.

Your client orders a 1004 form with REO addendum, that's what they want. A market value opinion on the 1004, asks for a limited time value opinion on the REO addendum.( and an as repaired value if repair issues)

 

[residentialguy]

Please don't listen to Res Guy on this, he is virtually the only one who does it this way, assumes a client "needs" liquidation value when the client ordered a 1004 requesting market value opinion.

Your client orders a 1004 form with REO addendum, that's what they want. A market value opinion on the 1004, asks for a limited time value opinion on the REO addendum.( and an as repaired value if repair issues)

No, it's not. That's just been a poor standard that they use...like putting a disaster report on a 1004D, except that the REO is in conflict with the 1004 Certs and the REO Sup Adden is simply misleading patchwork developed in 1996 as an afterthought to URAR modifications. It compromises the stated use and market value definition, limits the appraisal analysis, and misdirects the comparable selection process. The definitions and guidelines do not address actual marketing issues or conveyed rights, and promote misleading results.

 

[residentialguy]

We are required to have communication so that we provided a meaning report. The intended use of the URAR form "is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction."

This is not the intended use, though. there is no borrower...no financing...yet we use it!!!

Hello....we have a problem.

 

[Elliott]

Well, Res, Grand, and Eli,

You all got it wrong, as did I. A 1004 REO, is a 2005 Supplemental REO, but the twist is to put the 3 listings as Comps 4-6 on a 1004. Oh, and the MC isn't permitted. Of course, they don't tell you that until you submit them. And they require ENV, but they ask you to upload XML.

 

[Mr Rex]

We are required to have communication so that we provided a meaning report. The intended use of the URAR form "is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction."

This is not the intended use, though. there is no borrower...no financing...yet we use it!!!

Hello....we have a problem.

Foreclosing on a mortgage is part of a mortgage finance transaction. As is selling it REO.