Appraisers' Free Forum

I completed an REO assignment on a doublewide in December. The property is under contract (finally) and the same lender has ordered a new assignment as a purchase. My question is this, does the report absolutely need to be on the 1004C for an FHA Manufactured assignment? I seem to recall several years ago that it was not required, but preferred and the only real requirment was to include page 4 of the VC sheet, of course that's old news now I think. They want to order the report on the 1004 because they want a lower fee. I would prefer to use the 1004C due to the duplication.

1004C required per HUD

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/41502xd.doc

... Manufactured Home Appraisal Report (Fannie Mae Form 1004C March 2005) – Required to report an appraisal of a one-unit manufactured home. ...

and this one too

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/05-34ml.doc-2008-07-18

Code: Select all

www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/05-34ml.doc - 2008-07-18

Mr. Otis, thank you. I owe you a couple shots of Cuervo ro maybe something more expensive. This 2nd assignemnt should be a cloning, fast dollar, easy assignment, the only problem is that windmill in the back yard looked more like an oil derrick my second trip. Is 25 feet from the well too close? Everyone uses bottled water these days, right? :)

SJ - Glad to help - it was a quick search on the HUD site. Check out El Tesoro - berry, berry smooth stuff.

If that damned oil well is flavoring the well water, somebody's in deep doo-doo with the EPA. Those things are supposed to be grouted and sealed so that formation product can't get loose. You're not allowed to spill it all over the ground, either. Check around for obvious signs of environmental contamination. If there aren't any, say so in the report, and refer them to Statement #5 of the assumptions/limiting conditions.

Mr. Plante, the oil derrick was a feeble attempt at humor. I’m about to complete this one and since the electricity was disconnected I’m making it subject to a satisfactory re-inspection . I’m considering how to address an issue that some may consider minor or something that should not be addressed at all. The subject kitchen sink has a disposal. I don’t know all the names of the ASB members or who the latest disgraced appraisal chief is at WWTF, but I do know that garbage disposals add excess organic material to the infiltrative field and often cause a rapid buildup of scum and sludge in the tank and increase clogging in the field. I’m wondering if I should make the report subject to the removal of the disposal or just mention the fact it is there and suggest its removal. Disposal $129 New septic field $3,000, permit $300, does the appraiser have an E & O policy?

Is the disposal a physical deficiency? Is it an adverse condition? Does it affect the livability, soundness, or structural integrity of the property?

If the disposal represents an adverse condition that may affect the livability of the property, then say so and recommend removal of the disposal because of the tendency of disposals to cause a septic system to fail.

While you're at it SJ - be sure to make it subject to the installation of a compost pile too.

Jim Plante wrote:Is the disposal a physical deficiency? Is it an adverse condition? Does it affect the livability, soundness, or structural integrity of the property?

If the disposal represents an adverse condition that may affect the livability of the property, then say so and recommend removal of the disposal because of the tendency of disposals to cause a septic system to fail.

That part oculd be debatable, if the new owner's name is Chang and he owns a restaurant and employs 23 people all who hapend to reside with him, the disposal and septic just might qualify. I discovered after a call from the listing agent that the new owner/buyer is a truck driver who never cooks, and lives off TV dinners and Hardee's biscuits, so not a problem until the next time it's foreclosed, BTW this is one of those repeat REO properties, this time, VA owns it, next time Fannie, then Ocwen, one long cycle.

Otis wrote:While you're at it SJ - be sure to make it subject to the installation of a compost pile too.

I've seen some real horror stories with compost piles, in fact I'm convinced most of those cases of human spontaneous combusition was a result of some guy firing up a stogie when the compost pile was about to belch and burp anyway. I've never seen a barn do, it but know some who have.

Senior Jefe wrote:

Otis wrote:While you're at it SJ - be sure to make it subject to the installation of a compost pile too.

I've seen some real horror stories with compost piles, in fact I'm convinced most of those cases of human spontaneous combusition was a result of some guy firing up a stogie when the compost pile was about to belch and burp anyway. I've never seen a barn do, it but know some who have.

Could be SJ - but was the barn load or not - were they pointed upwind or downwind? This sounds like a complex assignment to me! Maybe you had better check with your supervisor. It could require a cesspool instead.