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Topic 5. Processing Procedures
a. Property Eligibility
The subject property must be secured by a Department of Veterans Affairs (VA) guaranteed loan that is proceeding toward liquidation.
b. Appraisal Request
Servicers will request the appraisal in The Appraisal System (TAS) by completing VA Form 26-1805, VA Request for Determination of Reasonable Value. TAS will automatically notify the assigned appraiser via e-mail when the liquidation appraisal assignment is made.
Servicers may authorize parties to order appraisals on their behalf (i.e., law firms). Those parties must register in the Veterans Information Portal (VIP) under their own name as an "Other Requestor."
If the age... Then...
is acting on behalf of an approved Servicer Appraisal Processing Program (SAPP) servicer and is authorized by that servicer,
he or she may request VA SAPP appraisals.
requests an appraisal, he or she must use his or her own log-in identification
(ID) to request appraisals. An appraisal cannot be requested unless the sponsoring servicer is known at the time of the request.
Note: In requesting an appraisal, the authorized agent is making the required certifications on behalf of the sponsoring servicer.
receives notification the completed liquidation appraisal report has been uploaded in E-Appraisal,
he or she must notify the sponsoring servicer or their Staff Appraisal Reviewer (SAR) that the appraisal was uploaded in E-Appraisal.
Note: When making the request, be sure to provide accurate information on the location of the keys to a vacant property in item 24 of VA Form 26-1805, VA Request for Determination of Reasonable Value, as well as the telephone number of the party requesting the liquidation appraisal in item 40. This may require additional instructions from servicers when referring cases to foreclosing attorneys, if the attorneys are the parties ordering the liquidation appraisals.
c. Access to Property by Appraiser
VA requires fee appraisers to gain access to vacant properties when performing VA liquidation appraisals in order to determine accurate values. If the fee appraiser is unable to gain access to a vacant property, the appraiser should use the contact information provided in item 40 of VA Form 26-
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1805, VA Request for Determination of Reasonable Value. Servicers’ timely responses to any telephone inquiries help to limit delays in completion of appraisals for those cases where an appraiser encounters problems accessing the vacant property.
If the appraiser still cannot gain access, he or she must document the actions taken to obtain access to the subject vacant property in an e-mail to the Construction & Valuation (C&V) section of jurisdiction. C&V will then forward the appraiser’s email to the Regional Loan Center’s Loan Administration Officer, who will forward it to the appropriate servicer personnel.
Time delays caused by an appraiser’s inability to access a property can result in postponed liquidation sales. Because such delays are beyond the control of the appraiser, C&V "stops the clock" on the appraiser’s timeliness requirements until access is obtained. However, in most cases, VA does not view delays as beyond the control of the servicer, and therefore the servicer may suffer curtailment of interest on the loan if a sale cannot be completed timely due to delays in the appraiser obtaining access to a property.
d. Liquidation Appraisal Requirements
For details about VA liquidation appraisal requirements, see section 13 of chapter 11.
e. Submitting Cases to VA for Processing
If a SAR is reluctant to issue the Notice of Value (NOV) due to the difficulty or complexity of the case, the SAR may request that the VA Regional Loan Center (RLC) of jurisdiction issue the NOV.