Removal of 2 Stoves, 2 Refrigerators Appraisal Woes

Sonia Figueroa
Sonia Figueroa
Published on December 11, 2018

They say social media doesn’t work for creating relationships online and successfully getting them to meet you offline. So what does this have to do with 2 stoves and 2 refrigerators, right?

On a super cold snowy day in Chicago I was at the park periscoping (livestream mobile app) showing how much snow we were getting and how quickly it was accumulating I then finished up and headed to my car. I remember sitting in my car for a minute taking a breather and I got a call from a lady and she said “Hi is this Sonia? I said, yes, how can I help you“. She then proceeded to tell me how she just finished watching a youtube video in which I was talking about down payment assistance.

The process

We talked about the different programs that there are at this time which there are two from the State Of Illinois but each bank has their own incentives for down payment programs. We talked for about an hour and then I suggested she speak to a lender that concentrated on those type of programs. She said alright and a week later we started looking at condos.

Sue is a single lady and her boyfriend would accompany us to the showings he dabbled in flipping houses in Philadelphia for a little bit. At first she wanted a condo because it was low maintenance and she wanted to be near lake Michigan. Then we looked at some rehabbed single family homes because she thought she would get a better bang for her buck but found out that it was out of her budget due to the areas she was looking. As they say location, location, location. After a couple of months looking at single family properties her boyfriend Sal told her that it would be best for her to get a 2-Unit building so she can get some rental income and be able to afford a higher mortgage payment. She agreed.

We ended looking into foreclosures since she had a limited budget, it helped out that she had a conventional loan because FHA tends to be stricter when it comes to having the utilities on for the appraisal.

Here we are on live on periscope going through some foreclosures.


Sue ended up buying a homepath property and received $6,447 in closing costs, I walk you through it in the video below. I apologize as it is a bit long because I am also talking to the audience on periscope. If you get annoyed by the video you can also read up on what Homepath is here or you can also go to the homepath website directly.

2 Stove & 2 Refrigerators

Here is where the 2 stoves and 2 refrigerators come into play. Sue bought a single family home that use to be zoned as a 2-unit. When you walk into the home it has 3 floors and each floor looks like an apartment. When you get a loan for a home the bank will send out an appraiser to appraise the value of what the home is really worth. So if the appraiser sees that there are stove and refrigerators on each floor then the property zoning type becomes questionable because it will appear to be a rental income property vs. a single family home. The value has to be determined based upon a single family NOT a 2-Unit building. So being that this home is a foreclosure then the bank (seller) would have to take out the stoves and refrigerator and close up the gas lines to bring it back into its normal state of being a single family home otherwise Sue cannot get the loan.

The appraiser noted on his report that there were 2 stoves and 2 refrigerators one on each level indicating that this is a 2-unit home. The bank quickly had the contractor remove them and the appraiser came back out to the home to re-appraise the property. The value came in fine and Sue was able to continue with her loan.

So when you are buying a foreclosure please make sure you know what you are getting into. A couple of things to watch out for

  • Don’t expect disclosures
  • Prepare to see homes stripped bare
  • Don’t expect the bank to give you credits or fix things
  • The bank will have its own processes

This is Sue and Sue with their new home, oh the arrow is pointing to their roach cleaner lol.

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