agricultural property
497) Financial Segregation
06/01/09
Dear H2:
Subject Property is a 78 acre hay farm & pasture ground with a small owner occupied home in Oregon. A bank has provided a "financial segregation" legal description from the local title company for a 9 acre parcel including the home and buildings to be appraised for a conventional refinance. The legal description involved reads "For Lender Use only" and is not being recorded. What is your viewpoint? . Can I appraise the 9 acre parcel in the legal description hat has been provided to me? I am concerned that it may not be a valid legal description since it is not being recorded and did not go through any County Planning & Zoning Review. I have heard that some title companies will not do these so-called "financial segregations" because of possible legal issues.
brent bainbridge bwbainbridge@cableone.net
Dear Brent,
You can do this appraisal providing you do a few things. First, during your required scope of work dialogue with the lender/client you should advise them that most likely this loan will not be acceptable to Fannie Mae or Freddie Mac. Your appraisal must prominently disclose that it was based on the description of the property provided to you by the lender/client which you have not verified and which you assume to be correct. Finally, you must be satisfied that this assignment is not being done to deceive anyone.
H2
Subject Property is a 78 acre hay farm & pasture ground with a small owner occupied home in Oregon. A bank has provided a "financial segregation" legal description from the local title company for a 9 acre parcel including the home and buildings to be appraised for a conventional refinance. The legal description involved reads "For Lender Use only" and is not being recorded. What is your viewpoint? . Can I appraise the 9 acre parcel in the legal description hat has been provided to me? I am concerned that it may not be a valid legal description since it is not being recorded and did not go through any County Planning & Zoning Review. I have heard that some title companies will not do these so-called "financial segregations" because of possible legal issues.
brent bainbridge bwbainbridge@cableone.net
Dear Brent,
You can do this appraisal providing you do a few things. First, during your required scope of work dialogue with the lender/client you should advise them that most likely this loan will not be acceptable to Fannie Mae or Freddie Mac. Your appraisal must prominently disclose that it was based on the description of the property provided to you by the lender/client which you have not verified and which you assume to be correct. Finally, you must be satisfied that this assignment is not being done to deceive anyone.
H2
292) Agricultural Property
04/05/08
Dear Henry,
Regarding the question on agricultural properties, I believe the regulations are in regard to use and not zoning. In our market, many properties have some additional acreage, are in an AG zone, are not farms and are accepted by Fannie and Freddie.
Regards,
James T Scholl jamestscholl@yahoo.com
Dear James,
It is not really the appraiser's problem to determine if a mortgage is eligible for purchase by Fannie Mae or Freddie Mac. However, when a lot is large and the zoning is agricultural, it is helpful to your client to make it very clear how the property is being used and what the highest and best use is.
H2
Regarding the question on agricultural properties, I believe the regulations are in regard to use and not zoning. In our market, many properties have some additional acreage, are in an AG zone, are not farms and are accepted by Fannie and Freddie.
Regards,
James T Scholl jamestscholl@yahoo.com
Dear James,
It is not really the appraiser's problem to determine if a mortgage is eligible for purchase by Fannie Mae or Freddie Mac. However, when a lot is large and the zoning is agricultural, it is helpful to your client to make it very clear how the property is being used and what the highest and best use is.
H2
260) Agricultural Property & Freddie Mac
03/05/08
Dear Henry,
My subject property is zoned Agricultural/conservation (7 acres). Would this be a problem for sale to Freddie Mac?
Name Withheld by Request
Dear Friend,
Yes. Agricultural properties are a specific exclusion from Fannie Mae's or Freddie Mac's portfolio acquisitions.
H2
My subject property is zoned Agricultural/conservation (7 acres). Would this be a problem for sale to Freddie Mac?
Name Withheld by Request
Dear Friend,
Yes. Agricultural properties are a specific exclusion from Fannie Mae's or Freddie Mac's portfolio acquisitions.
H2
128) Agricultural Property Form
09/03/07
Dear Henry,
I have been asked to do an appraisal on a total of 67.8 acres with a farmhouse, barn and 2 car garage on 3 parcels of land, zoned agricultural preservation. Can this be completed on a FNMA form?
Donald Brown bjappraisal@hotmail.com
Dear Donald,
Using the new URAR would not be my first choice as you'd have to make so many changes to it that it would become very confusing to the reader.
While you could use the Classic URAR or the new AI appraisal form, in my opinion for an assignment of this complexity, it would be much better to use a short form narrative report.
Hopefully, you have at least a residential certification as this sounds like a demanding assignment.
H2
I have been asked to do an appraisal on a total of 67.8 acres with a farmhouse, barn and 2 car garage on 3 parcels of land, zoned agricultural preservation. Can this be completed on a FNMA form?
Donald Brown bjappraisal@hotmail.com
Dear Donald,
Using the new URAR would not be my first choice as you'd have to make so many changes to it that it would become very confusing to the reader.
While you could use the Classic URAR or the new AI appraisal form, in my opinion for an assignment of this complexity, it would be much better to use a short form narrative report.
Hopefully, you have at least a residential certification as this sounds like a demanding assignment.
H2