Residential Appraisal for HUD’s CWCOT Program

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Residential Appraisal for HUD’s CWCOT Program

Valuation Management Group recently became aware of a HUD program called Claim Without Conveyance of Title (CWCOT), and we wanted to inform our readers.

The CWCOT program encourages 3rd parties to purchase homes at foreclosure sales by allowing bids less than the total debt owed on a property. The objective of this program is to decrease the number of homes in the HUD inventory through conveyance. Properties in all 50 states and the District of Columbia are eligible. However properties with surchargeable damage are not eligible for the program (i.e. fire damage, flood, earthquake, tornado, hurricane, boiler explosion or mortgagee neglect).   The loan must be actively FHA insured.

The appraisal must be completed by an FHA approved appraiser. Verification of the appraiser’s FHA approval can be found utilizing the following link:

The appraisal must be completed “AS IS,” and an interior and exterior inspection should be performed. However, should interior access not be possible then an exterior only appraisal will be accepted. It is important to note that the purpose of the appraisal is to determine market value for the foreclosing property; therefore, FHA minimum property requirements are not needed for the purpose of CWCOT appraisals.

AMV’s and BPO’s are not acceptable. Only appraisals completed by FHA approved appraisers will be accepted. Appraisals are valid for 120 days.

The CWCOT program was originally implemented in 1987.   The most recent mortgagee letter was effective as of February 1st 2015. Current CWCOT requirements can be found in Mortgagee Letter 2014-24.

Valuation Management Group is a national, full service appraisal management service company that manages the appraisal process for financial institutions, banks, mortgage bankers and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary.

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