REGIONAL OFFICE
NORRIS COTTON FEDERAL BUILDING
275 CHESTNUT STREET
MANCHESTER, NH 03101
In Reply Refer to:373/26
LOAN GUARANTY INFORMATION LETTER NO. 26-02-08
TO: APPRAISERS AND SERVICERS
SUBJECT: LIQUIDATION APPRAISAL PROCESSING ISSUES
The purpose of this release is to review procedures that appraisers and servicers must follow
to ensure timely processing of liquidation appraisals, and to announce a new requirement,
whereby appraiser's must forward a copy of the appraisal directly to the servicer.
What are VA timeliness standards for completion of a liquidation appraisal?
VA requires that liquidation appraisals be completed by the appraiser within five (5)
business days of receipt of the assignment. The timely completion of liquidation appraisals
is essential to ensure that servicers are provided with property value and other appraisal
information necesary for foreclosure action. Postponement of foreclosure action due to
an untimely appraisal may result in monetary loss to the government.
What action should the appraiser take upon receipt of a liquidation appraisal
assignment indicating the property is occupied?
- Attempt to contact the homeowner or occupant as soon as possible to arrange for an
interior inspection. If there was any delay, then document report, view property, and
forward appraisal to VA.
- If telephone numbers were not provided, or if the number provided was disconnected, then
contact the [appraisal] requestor and ask for confirmation of the telephone number
Document your call to the requester, and the reason for any delays. If there is no response
to your phone call to property within one(1) business day, then proceed to visit the property. If
it appears the subject property is occupied, but no one answers the door, then leave your
business card and a note in the mailbox asking that occupants contact you to arrange an
interior inspection. Take photos and any other exterior information you can. If you do not
hear from the occupant within one day, then document delay, complete an "exterior only"
appraisal and forward your report to VA.
- If the visit reveals the property to be obviously vacant, then contact requestor and advise them
or that fact, and request that [they] arrange for an interior inspection. We must view the
interior of every vacated residential unit. Once entry is made, complete the report, document
delays, and send appraisal to VA.
What action should the appraiser take upon receipt of a liquidation appraisal
assignment indicating the property is vacant?
The requester must provide the appraiser with contact information to permit access to the
interior. The appraiser then needs to make an appointment to view the interior, complete
the appraisal, document any delays, and send appraisal report to VA. If information to
access the interior is not provided with the request, then please contact the requester
immediately, and advise them that the appraisal will be delayed until such time that [they]
arrange interior access.
What action should the appraiser take if there are delays beyond the appraisers
control?
The appraiser should keep VA informed via e-mail or facsimile message of any unusual
delays, in addition to, documenting the appraisal report.
What if the appraiser determines that the five day requirement cannot be met due
to his/her volume of owrk, or other commitments?
Conact our office immediately via e-mail or facsimile message. The assignment may be
re-assigned, or remain with the appraiser, depending upon such factors as the availability
of appraisers, and the scheduled foreclosure sale date.
What can the servicer do to assist the appraiser in meeting our timeliness
standard?
Servicers should inform employees or other parties, e.g. attorneys, agents tasked with
ordering a VA liquidation of the following:
- the liquidation appraisal should be assigned to an appraiser at least 30 days prior to the
scheduled foreclosure sale whenever possible. - The appraisal should be ordered via the VA Internet Assignment System (TAS) at
tas.vba.va.gov - The accuracy of the contact information entered into TAS and provided to the assigned
appraiser is crucial to the timely complettion of the appraisal. This includes name of
occupant, current home/work phone numbers for occupant, or contact name and number if
the property is vacant. - The request should be sent to the appraiser via e-mail if possible. If not, the request should
be sent via fax. - Ensure the appraiser is provided with the name and direct telephone number and/or e-mail
address for a servicer contact. Then, if the appraiser has any questions related to the
assignment information, he/she can obtain answers to them quickly.
Should a copy of the liquidation appraisal be provided to the requester?
Effective immediately, the appraiser must send a copy of the appraisal via e-mail on any
case where the Request for Determination of Reasonable Value, VA Form 26-1805, has
the requester's e-mail address, in item 5. If the appraiser does not have e-mail capability,
then the copy of the appraisal must be sent via overnight mail, to the requester. The
orignal appraisal report must be forwarded to VA via e-mail or overnight mail.
Can the servicer use the e-mailed appraisal in preparing for the liquidation
action?
Servicers are cautioned that the appraisal is subject to VA staff review, and possible
adjustment of value.
What is the Manchester RLC Construction & Valuation contact information for
questions related to liquidation appraisals in New England?
E-mail address: nh_appr@vba.va.gov
Fax number: (603) 666-7549
Telephone number: (800) 827-6311, extension 6.
Your assistance in helping us process timely and accurate liquidation appraisals is
appreciated.
Keith C. Boerner
Loan Guaranty Officer