+----------+-----------------------------------------------------------+
| ![       | **DEPARTMENT OF VETERANS AFFAIRS**                        |
| ](media/ |                                                           |
| image1.w | **REGIONAL LOAN CENTER**                                  |
| mf){widt |                                                           |
| h="0.864 | **NORRIS COTTON FEDERAL BUILDING**                        |
| 58333333 |                                                           |
| 33334in" | **275 CHESTNUT STREET**                                   |
| he       |                                                           |
| ight="0. | **MANCHESTER NH 03101**                                   |
| 8375in"} |                                                           |
|          |                                                           |
| May 23,  |                                                           |
| 2005     |                                                           |
+----------+-----------------------------------------------------------+

In Reply Refer to: 373/26

# Regional Loan Center Release No. 05-05

TO: SERVICERS AND APPRAISERS

SUBJ: Liquidation Appraisal Procedures

The purpose of this release is to inform lenders and servicers of VA's
procedures and requirements for ordering a liquidation appraisal. This
release will tell you how the liquidation appraisal is ordered, what is
VA form 26-1805, if drive-by appraisals are acceptable, what is the time
frame for the servicer to arrange access for the appraiser to a "vacant"
property, who is responsible for paying the appraiser's fee, and what
impact a delayed or cancelled appraisal will have on the servicer.

**How Is The Liquidation Appraisal Ordered?**

> The requestor must order all VA appraisals through The Appraisal
> System (TAS) located on the Veterans Information Portal (VIP) at
> [https://vip.vba.va.gov]{.underline} at least thirty (30) days prior
> to the foreclosure sale date. Once the appraisal has been ordered and
> an appraiser assigned, **the [requestor]{.underline} is required to
> send the appraiser a copy of the fully completed VA Form 26-1805 via
> fax or overnight mail**. You should contact the Valuation Department
> if you have questions in regards to the VIP, TAS, or ordering
> appraisals at 800-827-6311 ext: #6.

**What Is VA Form 26-1805?**

VA Form 26-1805 is the VA appraisal order form that you will be prompted
to complete when ordering a liquidation appraisal through TAS. This form
provides the appraiser with all the required information needed to
complete the appraisal such as the property address, occupancy status,
access information etc. It is essential that this form be completed with
accurate information including a valid contact person. If the property
is occupied, the contact information should include the name and phone
number of the occupant. If the property is vacant, the contact
information should include the name and phone number of the person who
has the ability to open the property and allow the appraiser to gain
access (i.e. property management company, broker, etc.).

**Are Drive-by Appraisals Acceptable?**

> The appraiser can complete the appraisal based on an exterior
> inspection **[only]{.underline}** if the property is occupied and the
> appraiser has made three unsuccessful attempts to contact the occupant
> or the occupant has refused the appraiser access to the property.
> **[An exterior appraisal can not be completed when the property is
> vacant, or if the appraisal is being completed for a compromise sale,
> deed-in-lieu, or refunding situation.]{.underline}** If the property
> is vacant and deemed to be a safety hazard, VA can authorize an
> exterior appraisal upon receipt of documentation from the servicer
> that the property is unsafe to enter. It is the servicer's
> responsibility to arrange access to the property for the appraiser.

**What Is The Time Frame For The Servicer To Arrange Access For The
Appraiser To A "Vacant" Property?**

> The servicer should contact the appraiser within forty-eight (48)
> hours of ordering the appraisal to set up access to the property.
> Appraisers have been instructed to inform VA if they have not been
> given access to the property within ten (10) days of the initial
> order. At that point the situation will be assessed and the appraisal
> assignment will be cancelled requiring the requestor to reorder the
> appraisal.

**Who Is Responsible For Paying The Appraiser's Fee?**

> The appraiser will include a copy of his/her invoice with the
> appraisal report as well as send one to the requestor. **[The
> requestor, upon completing VA Form 26-1805, accepts responsibility for
> paying the appraiser's fee]{.underline}**. VA expects that the
> appraiser's entire fee will be rendered to the appraiser within a
> reasonable time period (30 days). It is often the case that the
> requestor is ordering the appraisal for the servicer. This does not
> release the requestor from the responsibility of paying the
> appraiser's fee. Continuous situations of delayed payments from a
> certain requestor will result in VA authorizing prepayment of
> appraisal fees from that requestor.

What Impact Will A Delayed or Cancelled Appraisal Have On The Servicer?

> VA will not adjust the interest cutoff date for any delayed or
> cancelled appraisal that was not caused by VA. Please contact the Loan
> Administration Department if you have any questions at 800-827-0336.

William F. Dallmann

Loan Guaranty Officer