Got a question about appraisels, property and all that good

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

Hey folks,

Anyways here is the current situation:

I own one acre of property that has two houses on it. The 1st home has a 1st and 2nd mortgage on it totaling to about $65k. The 1st home was appraised for $65k last year in June. The 2nd house is free and clear. That house did not get appraised. Both houses are on one legal discription. Is there anyway of maybe reappraising the 1st house but add the 2nd house to it?

Property is located in Michigan.

Guest 0.10 Dollars($)

Both houses will have separate appraisal. The value of the 2nd house cannot be added to that of the first.

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

Ok so your saying if I got the 2nd house appraised I should be able to use that house as collateral if I wanted another loan?

larry · Joined: 27 Jun 2007 Posts: 3321 472.39 Dollars($)

Hi Wildstorm,

As both houses are two different properties, both of them will require different appraisals.

And with the appraisal of your second house, you can get another loan by keeping the same house as collateral. In that case, there should not be any problem in putting the second house as security for getting the new loan.

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

Hey Larry,

Wow cool. I thought maybe I would have to get the property split in half so that the 2nd house has its own legal discription.

larry · Joined: 27 Jun 2007 Posts: 3321 472.39 Dollars($)

Hi Wildstorm,

Welcome back to the forum.

You do not have to split your property to get qualified for a loan. You will get the loan by placing your second home as security.

0.10 Dollars($)

Ok now I'm confused and here's why:

I am told that I do not need to split the property in order to use the 2nd house as collateral. But then I'm told by some lenders, well I think they are mortgage lenders, I found them on craigslist, and they say they can't do anything unless the property is split and the 2nd house has its own legal discription.

One broker, who does FHA loans, was going to set me up with an interrim loan(sort of like a temporary loan) so that way I can get the property split to be able to refinance. I didn't go along with it though because I wasn't sure about the idea.

What I am trying to do is use the equity in the 2nd house to fund my business.

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

By the way, thats me that just posted as a guest. I forgot to log in.

larry · Joined: 27 Jun 2007 Posts: 3321 472.39 Dollars($)

Hi Wildstorm,

Let me explain you clearly.

There should be individual legal description for your houses. If the legal description for the two houses is jointly done, then you may not be able to qualify for a new loan that you wish to take against your second house.

At first you need to go to the County Recorder's office and get the legal description of the houses done individually. Then you need to contact an appraiser and get an appraisal done on your second house. After doing this, you may finally be able to get the loan.

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

"There should be individual legal description for your houses. If the legal description for the two houses is jointly done, then you may not be able to qualify for a new loan that you wish to take against your second house.

At first you need to go to the County Recorder's office and get the legal description of the houses done individually. Then you need to contact an appraiser and get an appraisal done on your second house. After doing this, you may finally be able to get the loan."

Wouldn't this require me to get the property split? They may not do a legal discription of the 2nd home without splitting the property. That'll involve zoning and surveying and all that stuff and I don't have the money to do that. Both houses share one well and I believe they share one septic tank as well.

0.10 Dollars($)

Hi Wildstorm,

I don't think the property needs to be splitted as there are two different houses. Let's see what other says.

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

There should be individual legal description for your houses. If the legal description for the two houses is jointly done, then you may not be able to qualify for a new loan that you wish to take against your second house.

At first you need to go to the County Recorder's office and get the legal description of the houses done individually. Then you need to contact an appraiser and get an appraisal done on your second house. After doing this, you may finally be able to get the loan.

If perchance that I don't have to split the property, how much is it to get a legal discription on the other house?[/i]

Caron · Posted: Fri Aug 24, 2007 10:52 am Post subject: RE: split property for appraisal

Hi Wildstorm,

What i feel and understand is that, if you wish to take a loan against the second house, you will have to conduct an appraisal of that home itself and not the first one. So, if the description of the entire property includes both the houses, there is a possibility that you may have to prepare a separate description for each. You're quite right in thinking that way.

In order to know how much it costs to get the description, you need to approach the County Recorder's office or contact the officials there.

Good luck Smile

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

Hi Wildstorm,

What i feel and understand is that, if you wish to take a loan against the second house, you will have to conduct an appraisal of that home itself and not the first one. So, if the description of the entire property includes both the houses, there is a possibility that you may have to prepare a separate description for each. You're quite right in thinking that way.

In order to know how much it costs to get the description, you need to approach the County Recorder's office or contact the officials there.

Good luck Smile

Yeah thats what I want to do. I looked at my property tax document and under the legal discription, it says:

Take off a strip 2 Rds. wide from E & S sides for a Rd, Then 1 Acre Sq, Cont about 209.5 Sq. Ft. off from SE Cor of SE
1/4 of SE 1/4, Sec 26, T36N, R2W.

???

evolovik26 · Posted: Fri Aug 24, 2007 1:52 pm Post subject:

I saw you post on the other forum about it as well here is how i see it
You have a single lot with 2 houses on it. when you had it initiall appraised appraiser appraised it as a single family dwelling to make the loan work ( that means that the second house was not concidered but made the loan easier as there are some problems assosiated with having 2 houses on one lot. This may have given you a lower value for the property but mae for an easier loan. Now you need more money and here is what you can do:
1. Split the lot into 2 (there will be alot of issues with that beetween you, city you live in, county, lender ect.
2. Apraise your home as is with both houses and see if the value of the property large enough to be a colateral for your new loan as is. ( as this would be a business loa other factors are looked at. ( although they would be in 2nd position and that would cause some issues but it might work )

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