I have an FHA deal that the appraisal was completed at 80k a few months ago.  A buyer came along and offered the asking price but then his Lender's FHA appraisal was done, it came back at 55k AS-IS.

The lender refused to accept the buyer's appraisal because they've already done two appraisals of their own on the property.

Does anyone know where the policy is written that states that they must accept the value of the buyer's appraisal if it is an FHA appraisal?  Or please explain to me the best way to get the lender to accept the appraisal?

Views: 711

Replies to This Discussion

The don't have to use it, but you can use it for a dispute.  Also, you can ask the Servicer/Lender (they will generally balk initially) to submit to the National Servicing Center a HUD for a Variance.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sf...

Question 3: What is the length of time that a PFS Appraisal is valid?

Answer: By issuance of Mortgagee Letter 2010-8, dated March 8, 2010, it advised the lending industry that effective April 1, 2010, REO Appraisals are valid for 120 days. The required PFS "As-Is" Appraisal is to be prepared by following HUD Handbook 4150.2 (Valuation Analysis for Single Family One-to-Fo... Appendix A and therefore valid for 120 days. Lenders will need to submit a Variance to request the Appraisal to be extended to allow for closing.

Question 4: Can a Lender utilize the buyer's appraisal to review the property that is accepted into the PFS or must the Lender acquire an independent one?

Answer: If the buyer has secured an FHA-insured appraisal, use of the buyer's appraisal would be allowed.



http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sf...

Contact Us:

U.S. Department of Housing and Urban Development
FHA National Servicing Center
301 NW 6th Street, Suite 200
Oklahoma City, OK 73102

 -   National Servicing Center (NSC): (877) 622-8525

Well Kevin, we opened a ticket with FHA and they said they WOULDN'T force the lender to put in a variance, or even call them to educate them on this matter.  Apparently it's all up to the lender to decide if they WANT to put a variance in... which has been hard to convince them to do.  They want to stick to the ones they have on file. 

Any other ideas would be much appreciated, from anyone.

Is there is a mitigating circumstance, such as a bad septic causing such a discrepancy?  I have a similar fha, septic is bad..lender appraisor did not know..buyers appraisor did an as is and as repaired appraisal...lender accepted it and reduced the sale price to accomodate.

Victoria, There isn't a Mitigating Circumstance or anything necessarily different about this appraisal than the other.  It just takes into factor different comparables and realistic repair costs.

Thanks for quoting that Kevin, that's where I read it.  It appears they don't HAVE to accept it but they CAN?

RSS

Members

© 2024   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************