Who is the owner?

[Zoe]

The lender only wants you to check the 'owner' box. By all means include a paragraph about the trust. Appraiser's aren't title companies.

Yeah, if lender tells you to check owner, they already have title opinion from a title opinion lawyer. You can ask them for a copy of front page of title insurance company the lender bought.

Just tell them whatever owner the title opinion says and explain. If you go there and it is somebody renting the property from someone that is not the owner? You could say but the person living there said they are renting the property.

Get that page out of title insurance policy already issued to your client.

 

[J Grant]

Completed an appraisal for a reverse mortgage(not FHA).

The owners of public record are "John Doe" and "Mary Snow". The borrowers on the LOE and the occupants of the house are the parents of "John Doe" and "Mary Snow".
In the report I stated that "The Owners of Public Record are not the borrowers & the Assignment Type is not a Purchase."

Since the owners of public record are not the occupants, I checked the box that it was tenant occupied(for lack of any other pertinent choices).

The Deed refers to the parents as the Grantor and the children, "John Doe" and "Mary Snow" as the Grantees and calls them, Trustees of the G.R.S.R. Irrevocable Trust.

The client came back with:

1. "Please correct the report to owner occupied and remove the X from the tenant box. The Borrowers do occupy the subject, and they are the owners, Property is vested in their trust & even though they are not the trustees of the trust they are still the owners and owner box should be marked."

2. "Please revisit the legal description and remove the verbiage stating, "The Owners of Public Record are not the borrowers & the Assignment Type is not a Purchase" as well as the verbiage "Owners are the borrower's but since they are not the Owners of PR, Tenant is checked".

My duty is simply to report the Owners of Public Record and as per tax records the children "John Doe" and "Mary Snow" are those individuals. It would be misleading to report the owners of public record as anyone other than the children regardless of who is vested in whatever. And if the parents who are not the owners occupy the dwelling would they not be the tenant?

Please advise on a response to the client.

Thanks!

We value the propety, not the occuancy.
We are not title agents or trust lawyers. Whatever name shows up on public tax recrods as owner is the owner we report.. If it is a trust, it is not our job to dig around the trust and see who the trustee is or the beneficiary is.

The borrowers are whoever the client tells you the borrowers are. Why in the world would you call the owners residing in the property tenants?

Yes, remove the comment that the loan is not a purchase and owners of public record are not the borrowers.

 

[sputnam]

We value the propety, not the occuancy.
We are not title agents or trust lawyers. Whatever name shows up on public tax recrods as owner is the owner we report.. If it is a trust, it is not our job to dig around the trust and see who the trustee is or the beneficiary is.

The borrowers are whoever the client tells you the borrowers are. Why in the world would you call the owners residing in the property tenants?

Yes, remove the comment that the loan is not a purchase and owners of public record are not the borrowers.

It's true that we value the property, not the occupancy. However, we also have to comply with numerous reporting requirements which have very little or nothing to do with the valuation. For example, nothing in USPAP requires us to name the borrower or the owner of the subject property. If the Client requests that you report your appraisal on the 1004, then you do.

 

[Zoe]

My clients are more that happy to send me a copy of title insurance page showing current owner. If they tell me check owner occupant. No problem with me.

I can explain any possible discrepancies I have on who is living there and whether or not they are renting or whatever on a trust or whatever. I am not asking for a copy of lease from whoever is living there.

For all I know the owner could be letting them live there free and pay utilities.

 

[Zoe]

This is all tax related and lender questions like a CPA question. It doesn't involve me if H&B use is owner occupant on MV opinion. I have no problem checking owner occupant if the lender tells me to.

Just send me that page out of that title insurance policy if you don't mind. Thank you.

 

[Zoe]

Completed an appraisal for a reverse mortgage(not FHA).

The owners of public record are "John Doe" and "Mary Snow". The borrowers on the LOE and the occupants of the house are the parents of "John Doe" and "Mary Snow".
In the report I stated that "The Owners of Public Record are not the borrowers & the Assignment Type is not a Purchase."

Since the owners of public record are not the occupants, I checked the box that it was tenant occupied(for lack of any other pertinent choices).

The Deed refers to the parents as the Grantor and the children, "John Doe" and "Mary Snow" as the Grantees and calls them, Trustees of the G.R.S.R. Irrevocable Trust.

The client came back with:

1. "Please correct the report to owner occupied and remove the X from the tenant box. The Borrowers do occupy the subject, and they are the owners, Property is vested in their trust & even though they are not the trustees of the trust they are still the owners and owner box should be marked."

2. "Please revisit the legal description and remove the verbiage stating, "The Owners of Public Record are not the borrowers & the Assignment Type is not a Purchase" as well as the verbiage "Owners are the borrower's but since they are not the Owners of PR, Tenant is checked".

My duty is simply to report the Owners of Public Record and as per tax records the children "John Doe" and "Mary Snow" are those individuals. It would be misleading to report the owners of public record as anyone other than the children regardless of who is vested in whatever. And if the parents who are not the owners occupy the dwelling would they not be the tenant?

Please advise on a response to the client.

Thanks!

Let me explain. If the people living there, one or more are trustee over the trust. Just fix it.

It doesn't matter to me if H&B use on MV appraisal is owner occupant. Get a grip.

I'll give you what little I know. The trustee has power over the trust. The mortgage will be recorded in the trust name on the subject property.

If lender told you to check owner occupant. Check and keep your client.

I would kindly ask for that page out of title opinion and put in my report.

 

[ZZGAMAZZ]

This is all tax related and lender questions like a CPA question. It doesn't involve me if H&B use is owner occupant on MV opinion. I have no problem checking owner occupant if the lender tells me to.

Just send me that page out of that title insurance policy if you don't mind. Thank you.

You know 100% more about this issue than I do, but what if the lender and the borrower are conspiring to inaccurately report the occupancy status in order to obtain a better rate of financing (which the lender coud promote as a way to get the borrower's business)? If so, would/could the appraiser be involved in the collusion by simply reporting what the lender says, without further due diigence? ANOTHER QUESTION: Does the lender obtain a title report before the appraisal report? THANK YOU.