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Do You Know: The Tidewater Process

The VA has recently re-instated a circular on the The VA has recently reinstated a circular on their Tidewater Process. Here’s a quick run down of the key points

It makes sense that VA would revisit this procedure with so many markets seeing rapid appreciation. Rapid appreciation is always a challenge for appraisers as the sales data runs slightly behind the information needed in a frenzied seller’s market, especially in non-disclosure states, such as Texas, where the sales information isn’t a matter of public record.

When prices are going up quickly you have more For Sale By Owner (FSBO) properties to avoid the cost of real estate agent commissions. In non-disclosure states the terms of these FSBO sales aren’t readily available because they aren’t part of public record and aren’t posted in the Multiple Listing Service system used by the real estate agents.

I’ve seen many agents over the years doing detective work and pounding on doors to beg for copies of Settlement Statements from FSBOs to use the data to help the appraisal on their own pending sale.

With only 2 working days to get the additional information to the appraiser, parties have to act fast if they don’t want to end up with a low value and then a drawn-out Request for Reconsideration of Value process.

Also remember that it’s not the appraiser’s responsibility to dig for this information. It needs to be delivered in the proper format with complete validated documentation from whoever provides it.

For more info, read the circular here.

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