How do lenders deal with houses with un-permitted additions

[Anonymous]

And that’s exactly what happened. Of course, it gets worse for sellers or those who are trying to refinance, in that most of the appraisers who are out there now are newbies and many times, incompetent; most of the good ones can’t make a living and have had to change professions.

I am going through a reverse mortgage process. The appraiser who had only received certification3 months earlier, valued my new, permitted enclosed patio as just that- and not as additional living space (which is appropriate)- it is same level, fully-insulated with energy-star windows and door, and has a built-in energy star heater a/c (but forced air heating as the primary source. As a result it brought down the appraised value (if correctly averaged) over $85k- $100k+ too little, and that’s pretty hefty considering the distressed comps were going for around $300k).

She also left out that I am on the back end of a cul-de-sac with a 12 200 sq ft flat lot, that I had the built-in a/c (but mentions a small window a/c in kitchen), and that my brand-new roof is 40 yr, “3D” (no, you won’t need glasses to view it). She concentrated on “glitz”- cosmetic upgrades, while giving me virtually no credit for brand-new 100% waterproof, commercial-grade golden-oak flooring (Manning ICore 2- no longer available), newer 200amp 240v elec panel (our tract has 100amp), newly remodeled bath with dual-flush commode, new Marmoleum (not vinyl), new professionally-painted 0 voc paint inside, new outside paint as well, and brand-new outgoing main line.

I have a gorgeous shiny-black cooktop and oven, but not good enough because not stainless steel, and beautiful wood countetops weren’t granite, have 2-vehicle RV access (no credit), and a Yorkie named Frazzle.

The addition had the same flooring with vertical blinds as well. The a/c in addition actually cools almost my entire house (largest in tract, and with addition is now over 1220 sq ft).

I rebutted, with full info- but didn’t know at the time that my living space was “official”; MetLife went along with appraiser’s NON- response (NOTHING answered except my stating that another comp selling for much more was not used, while 4 distressed properties were.

MetLife should be completely avoided, believe me; broker told me they gave one of her clients a ZERO value- (she wound up going elsewhere and got client $350k). She said she’d never seen MetLIfe honor a rebuttal, no matter how strong the case. The appraiser didn’t call the listing agent re the house I’d wanted evaluated- she just drove by and pasted the blurb on the MLS.She claimed that house was .62 miles from mine where she had used only those .50 in her appraisal- even though she knew this was in the SAME tract, built SAME year and was SAME model as the REO comp she’d used. When I stated that that house was less than a block from a freeway, she countered that it was not an issue, because the house was (all of) 6 houses from the wall that separates the block from the freeway! She stated that this house was “far superior” to mine- but since she hadn’t talked to the listing agent, she had been unaware that the upgrades were mainly cheap and cosmetic, that when the bedrooms were reduced to two (so tiny that it was felt necessary to turn 2 into one narrow, long one, the occupant decided they needed another bedroom and virtually eliminated the livingroom by adding a wall that produced a 7′ x 10′ “bedroom”-without a window! Since now the livingroom was reduced to being a small dining area, they were using an all-acrylic sunroom as the livingroom (NO glass,, no wall area, no insulation). In actuality, my house would bring would bring far more.

She didn’t bother to contact any of the listing agents to confirm what I’d said about the respective comps; had she, she would have found out that the one she had given me only $40k more for in credit (“22k adjustment”) had been GUTTED- no cabinet, appliances- nothing- and the backyard after 20′ went down a very steep slope maybe 25′ to the street behind it.

Another comp backed up to a wash- its almost 16k sq ft lot (which included the wash, itself, and the bank on the opposite side) had only about 6k’ worth of usable land; my 12,200 sq ft flat lot instead of appreciating- was devalued by $7000!

There is a lot more- but running out of steam, here.

You can imagine how “concerned” the appraisal management company will be- it’s Experian- fat lot of angst it would cost them to lose this tiny brokerage. They don’t exactly have a sterling reputation for their choices in appraisers.

Whereas good appraisals made a difference to appraisers before the new rules- not anymore. The ethical, experienced ones have pretty-much disappeared. Nobody seemed to look at the negative consequences this inane law might bring.

I hear new changes are planned, but nothing firm, and from what I have gleaned, they will do little to make things better.

I know there were a lot of excellent, ethical appraisers out there- now the ones left are for the most part doing more than their share to ruin the market. The banks aren’t much of a help, for sure. Those appraisers who have tried to give a decent amount credit have all-too-often been shot down- required to re-think what they believe is fair- and then had to bring the appraisal way down. The FHA underwriter at the bank can override the appraiser and make the amount lower, but from what I understand, they cannot go higher or they will lose the FHA insurance.

BTW, the appraiser’s company is BizApps, located in West Hills, SFV ; Leticia Lopez is “it”. No supervisor, no real recourse. I am going to file a complaint with the licensing bureau; she ignored my points and did not compensate for a single one of her errors.

Wheee…

[bearishgurl]

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[bearishgurl]

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[bearishgurl]

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[bearishgurl]

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[bearishgurl]

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[UCGal]

[quote=saronne]
I have a gorgeous shiny-black cooktop and oven, but not good enough because not stainless steel, and beautiful wood countetops weren’t granite, have 2-vehicle RV access (no credit), and a Yorkie named Frazzle.
[/quote]

Yes – but would the Yorkie convey? If not, it doesn’t add value to the house. 😉

[UCGal]

[quote=saronne]
I have a gorgeous shiny-black cooktop and oven, but not good enough because not stainless steel, and beautiful wood countetops weren’t granite, have 2-vehicle RV access (no credit), and a Yorkie named Frazzle.
[/quote]

Yes – but would the Yorkie convey? If not, it doesn’t add value to the house. 😉

[UCGal]

[quote=saronne]
I have a gorgeous shiny-black cooktop and oven, but not good enough because not stainless steel, and beautiful wood countetops weren’t granite, have 2-vehicle RV access (no credit), and a Yorkie named Frazzle.
[/quote]

Yes – but would the Yorkie convey? If not, it doesn’t add value to the house. 😉

[UCGal]

[quote=saronne]
I have a gorgeous shiny-black cooktop and oven, but not good enough because not stainless steel, and beautiful wood countetops weren’t granite, have 2-vehicle RV access (no credit), and a Yorkie named Frazzle.
[/quote]

Yes – but would the Yorkie convey? If not, it doesn’t add value to the house. 😉

[UCGal]

[quote=saronne]
I have a gorgeous shiny-black cooktop and oven, but not good enough because not stainless steel, and beautiful wood countetops weren’t granite, have 2-vehicle RV access (no credit), and a Yorkie named Frazzle.
[/quote]

Yes – but would the Yorkie convey? If not, it doesn’t add value to the house. 😉

[faterikcartman]

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[faterikcartman]

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[faterikcartman]

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[faterikcartman]

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