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Your're NOT gonna believe this request !!

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Mary Caffey

Sophomore Member
Joined
Feb 22, 2002
HERB,
> ANOTHER ITEM NEEDS TO BE CHANGED ON THE APPRAISAL PER THE LENDER, FIRST
> HORIZON LOAN CORP. CHANGE THE PROPERTY FROM A PUD TO A FEE SIMPLE. EMAIL
> THE CHANGE TO ME TODAY IF POSSIBLE AS THE LOAN IS CLOSING TOMORROW.
>
> THANK YOU.
> KIM
>
> Kimberly Kucera
> Loan Processor
>
> LNG FUNDING, INC.


The subdivision has HOA dues so it is a PUD, AND we are in Texas, so it is a Fee Simple State !!!! Go figure----- Now I know why these loans are turned down AND it re-enforces why I get paid IN ADVANCE !!

Mary in Texas :roll:
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
Becareful.

HOA dues do not define a PUD. There must be property owned by the association. There are several private subdivisions inwhich there is no common property that have HOA dues. These are not PUD's. HOA fees cover road maintenance, however the lot owners own to the center of the road. Since the roads are not owned commonly, but there are fees to maintain them, this does not qualify as a PUD.

I do not have the FNMA link for this. JoAnn probably does, but it is in their definiation of PUD.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
For those that want the source:
~~~~~~~~
A planned unit development (PUD) is a project or subdivision that consists of common property and improvements that are owned and maintained by an owners' association for the benefit and use of the individual units within the project. For a project to qualify as a PUD, the owners' association must require automatic, nonseverable membership for each individual unit owner, and provide for mandatory assessments. Zoning should not be the basis for classifying a project as a PUD.
~~~~

Feel free to cut and paste in your, timely and reasonable and (better wait til you cool down).... at least ACCURATE response.
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
Thanks Lee Ann. I actually lost a client over that. I refused to mark something a PUD that was not. The client said I had to be wrond because the attorney prepared a PUD addendum for closing. I told them the attorney was wrong. I provided them with a copy of that and the attorney said he was not aware of it. Since I just didnt change my form and it delayed closing by a day, I no longer get work from them.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Just another example of someone working at McDonald's one week, and being an UW the next.

Roger
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Sorry to burst your bubble but......if there is a mandatory HOA with mandatory dues it is a PUD, period! Shouldn't be ... but is for lending purposes.

Now the reason.....HOA dues have priority over the mortgage! The HOA can, and does, foreclose if the dues are not paid so it is considered a PUD.
 

Mary Caffey

Sophomore Member
Joined
Feb 22, 2002
Yes, Mike- that's the way we see it in Texas- as in the little ole woman who lost her home 'cuz she was behind in her hoa dues- if it has dues at Lake livingston then it IS a PUD......

usually the roads are maintained by the subdv. and not county maintained plus there is usually a boat ramp or park area.

Mary
 

Ken-NC

Sophomore Member
Joined
Feb 21, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Mike,

So, take this example: A private road with seven single-wide manufactured homes on it. The homeowners have set up a homeowner's association and all homeowners must pay a mandatory $10.00/month to cover road maintenance. The homeowners own to the center of the road and there are NO shared amenities.

I should call this small community a Planned Unit Development?
 
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