APPRAISAL REPORT Lazy Hollow Ln Unit C Austell, GA PREPARED FOR

Transcription

1 APPRAISAL REPORT OF 493 Lazy Hollow Ln Unit C Austell, 316 PREPARED FOR FHA HomeTelos - 2A 1283 Murfreesboro Pike Suite 2 Nashville, TN AS OF 9/28/211 PREPARED BY Robyn Kemp 275 Hawk Trace Marietta, 366

2 NEIGHBORHOOD CONTRACT SUBJECT Individual Condominium Unit Appraisal Report The purpose this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion the market value the subject property. Unit # City Austell Zip Code C 316 Property Address 493 Lazy Hollow Ln Owner Public Record HUD County Cobb Borrower Deed Book Pg 218 Legal Description Dist: 19, LL: 116, 1156,129, Lot: 3, Unit: C Tax Year R.E. Taxes Assessor's Parcel No Project Name Sweetwater Valley Condominiums Phase # 1 8D7 Map Reference Census Tract Tenant X Vacant HOA 16 Occupant Owner Special Assessments per year X per month Property Rights Appraised X Fee Simple Leasehold Other (describe) Purchase Transaction Refinance Transaction X Other (describe) Assignment Type Department HUD REO Appraisal Lender/Client HomeTelos - 2A Address 1283 Murfreesboro Pike Suite 2, Nashville, TN Is the subject property currently fered for sale or has it been fered for sale in the twelve months prior to the effective date this appraisal? X Yes No Report data source(s) used, ferings price(s), and date(s). MLS# ; FMLS # LP1,935, LD 7/8/211, DOM 84 I did did not analyze the contract for sale for the subject purchase transaction. Explain the results the analysis the contract for sale or why the analysis was not performed. Contract Price Date Contract Is the property seller the owner public record? X Yes No Data Source(s) Public Records Is there any financial assistance (loan charges, sale concessions, gift or down payment assistance, etc.) to be paid by any party on behalf the borrower? Yes No If Yes, report the total dollar amount and describe the items to be paid. Note: Race and the racial composition the neighborhood are not appraisal factors. Neighborhood Characteristics Condominium Unit Housing Trends X Suburban Urban Rural Increasing X Stable Location Property Values X In Balance Built-Up Shortage Over 75% X 25-75% Under 25% Demand/Supply X Stable Growth Rapid Slow Marketing Time Under 3 mths X 3-6 mths Neighborhood Boundaries North--Powder Springs Rd SW;South--Thorton RD, East--I-2 Condominium Housing Over Supply Over 6 mths PRICE AGE () (yrs) Low 7 1 High Pred Present Land Use % One-Unit 85 % 2-4 Unit % Multi-Family 3 % Commercial 2 % Other Vacant 1 % West--Charles James Pkwy Neighborhood Description The neighborhood is comprised average to good homes in fair to good maintenance. A broad selection employment opportunities provide a generally stable economic base. The area also benefits from a productive blend land uses as well as an efficient assimilation a variety household incomes. PROJECT SITE Market Conditions (including support for the above conclusions) A twelve month analysis indicates property values are stable, the absorption rate is stable and market supply is in the typical ranges with a 5-6 month supply. Topography Mostly Level Size Density 9.+/-Acres 9.3+/-Units per Acre Zoning Description Residential Specific Zoning Classification Condominium Zoning Compliance X Legal Legal Nonconforming - Do the zoning regulations permit rebuilding to current density? X Yes No Zoning Illegal (describe) Is the highest and best use subject property as improved (or as proposed per plans and specifications) the present use? X Yes View Units/Fair No No If No, describe. Utilities Public Other (describe) Public Other (describe) Off-site Improvements--Type Public Private X X Electricity X Water Street Asphalt X X Gas Sanitary Sewer Alley N/A X 12/16/28 FEMA Special Flood Hazard Area Yes X No FEMA Flood Zone FEMA Map # FEMA Map Date Are the utilities and/or f-site improvements typical for the market area? X Yes No If No, describe. Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? Yes X No If Yes, describe. PROJECT INFORMATION No adverse conditions were observed, improvements appear to be outside a flood hazard area but rely on survey for insurance decisions. Data source(s) for project information MLS/FMLS Project Description Detached X Row or Townhouse Garden Mid-Rise High-Rise Other (describe) General Description General Description Subject Phase If Project Completed If Project Incomplete # Stories Two Exterior Walls Frame-Avg # Units # Planned Phases 84 # Phases 1 # Elevators Ro Surface Shingles-Avg # Units Completed 84 # Units 84 # o f Planned Units # Units For Sale # Units for Sale X Existing 1 # Units for Sale 1 Proposed Total # Parking 168+/Under Construction Ratio (spaces/units) 2:1 # Units Sold 84 # Units Sold 84 # Units Sold Year Built Type Garage/Open # Units Rented % # Units Rented 5% # Units Rented Effective Age 6 Guest Parking Adequate # Owner Occupied Units 92% # Owner Occupied Units 92% # Owner Occupied Units Project Primary Occupancy X Principal Residence Second Home or Recreational Tenant Yes X No Is the developer/builder in control the Homeowners' Association (HOA)? Homeowners' Association Developer X Management Agent - Provide name management company. Management Group Lueder, Larkin, Hunter Does any single entity (the same individual, investor group, corporation, etc.) own more than 1% the total units in the project? Was the project created by the conversion an existing building(s) into a condominium? Yes X No If Yes, describe Yes X No If Yes, describe the original use and the date conversion. Are the units, common elements, and recreation facilities complete (including any planned rehabilitation for a condominium conversion)? X Yes Is there any commercial space in the project? No If No, describe Yes X No If Yes, describe and indicate the overall percentage the commercial space. Freddie Mac Form 465 March 25 Fannie Mae Form 173 March 25 1 Produced by ClickFORMS Stware

3 Individual Condominium Unit Appraisal Report Describe the condition the project and quality construction. The complex is comprised generally quality materials and workmanship. No physical PROJECT INFORMATION deficiencies were observed (other than normal wear and diminished utility). No functional or economic obsolescence was observed. Describe the common elements and recreational facilities. Pool, Tennis Courts and Common Grounds are maintained. Are any common elements leased to or by the Homeowners' Association? Is the project subject to ground rent? Yes X No If Yes, describe the rental terms and options. Yes X No If Yes, Are the parking facilities adequate for the project size and type? X Yes per year (describe terms and conditions) No If No, describe and comment on the effect on value and marketability. PROJECT ALYSIS I did X did not analyze the condominium project budget for the current year. Explain the results the analysis the budget (adequacy fees, reserves, etc.), or why the analysis was not performed. Not provided. Are there any other fees (other than regular HOA charges) for the use the project facilities? Yes X No If Yes, report the charges and describe. Compared to other competitive projects similar quality and design, the subject unit charge appears High X Average Low If High or Low, describe Are there any special or unusual characteristics the project (based on the condominium documents, HOA meetings, or other information) known to the appraiser? Yes X No If Yes, describe and explain the effect on value and marketability. 16 Unit Charge per month X 12 = Utilities included in the unit monthly assessment per year. Annual assessment charge per year per square feet gross living area = 1 1,92 None Heat Air Conditioning Electricity Gas Water Sewer Cable X Other (describe) UNIT DESCRIPTION Bldg and Liab Insurance, Exterior & Grounds Maintenance, Garbage Pick-Up, Pest control/termite Bond/ Mgmt Fee/Reserve Fund General Description Interior materials/condition Amenities Appliances Car Storage Floor # Floors Sub/Tile-Avg Refrigerator None 1st/2nd Fireplace(s) # X Garage # Levels Two Walls Drywall-Avg Range/Oven Covered Open Woodstove(s) # X Deck/Patio Patio X Disp Heating Type FWA Fuel Gas Trim/Finish Pd/Wood-Avg Microwave # Cars 1 X Dishwasher Individual AC Bath Wainscot Fiber Glass-Avg Porch/Balcony Assigned X Owned X Central AC Other (describe) Doors 6-Panel-Avg Other Washer/Dryer Parking Space # Rooms Bedrooms Square Feet Gross Living Area Above Grade Bath(s) 1353 Finished area above grade contains: Are the heating and cooling for the individual units separately metered? X Yes No If No, describe and comment on compatibility to other projects in the market area. Additional features (special energy efficient items, etc.) C-Fans Describe the condition the property (including needed repairs, deterioration, renovations, remodeling, etc.). The subject needs Flooring replacement and is considered to be in average condition. The subject's improvements are comprised generally average quality materials and workmanship. No physical deficiencies were observed (other than normal wear and diminished utility). Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity the property? Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? X Yes PRIOR SALE HISTORY I X did Yes X No If Yes, describe No If No, describe did not research the sale or transfer history the subject property and comparable sales. If not, explain My research X did did not reveal any prior sales or transfers the subject property for the three years prior to the effective date this appraisal. Data source(s) MLS, FMLS, Redlink, Realist, GSCCCA My research X did did not reveal any prior sales or transfers the comparable sales for the year prior to the date sale the comparable sale. Data source(s) MLS, FMLS, Redlink, Realist, GSCCCA Report the results the research and analysis the prior sale or transfer history the subject property and comparable sales (report additional prior sales on page 3). ITEM SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 6/15/21 5/12/211 3/2/211 1/19/211 Date Prior Sale/Transfer 35,6 Foreclosure 46,85 Foreclosure 16,9 Foreclosure 64,2 Foreclosure Price Prior Sale/Transfer Bk Pg 218 Bk Pg 1312 Bk Pg 128 Bk Pg 1427 Data Source(s) 9/29/211 9/29/211 9/29/211 9/29/211 Effective Date Data Source(s) Analysis prior sale or transfer history the subject property and comparable sales Per available data sources, no prior sales or listings were noted for the subject nor the comparable sales within the past 36 months other than stated. Subject Sold 6/3/28 SP 77, Bk 1462 Pg 3338 Warranty Deed Freddie Mac Form 465 March 25 Produced by ClickFORMS Stware Fannie Mae Form 173 March 25 2

4 SALES COMPARISON ALYSIS Individual Condominium Unit Appraisal Report 3 18, 38,. There are comparable properties currently fered for sale in the subject neighborhood ranging in price from to 3 17,,. There are comparable sales in the subject neighborhood within the past twelve months ranging in sale price from to FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # Surrey Ln SW # Whitewater Ct # V 182 Ashborough Rd SE # F Address 493 Lazy Hollow Ln, # C Austell, 316 Marietta, 38 Austell, 316 Marietta, 367 and Unit # Project Name and Sweetwater Valley Condominiums Bellmeade Commons Sweetwater Valley Condominiums Ashborough Village Phase Proximity to Subject 7 miles NE.8 miles SE 1.1 miles NE Sale Price 17,15 17,35, sq. ft. sq. ft. sq. ft. sq. ft Sale Price/Gross Liv. Area Data Source(s) MLS # DOM 65 MLS # DOM 63 MLS # DOM 89 Verification Source(s) MLS, FMLS, Realist MLS, FMLS, Realist MLS, FMLS, Realist DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION VALUE ADJUSTMENTS +(-) Adjustment +(-) Adjustment +(-) Adjustment Sale or Financing CNV/REO CNV/REO CNV/REO Concessions SCD SCD SCD Date Sale/Time 7/14/211 6/1/211 8/4/211 Location Suburban Suburban Suburban Suburban Fee Simple Fee Simple Fee Simple Fee Simple Leasehold/Fee Simple HOA Mo. Assessment Common Elements HOA HOA HOA HOA and Rec. Facilities Pool/Tennis Courts Pool/Tennis Courts Pool/Tennis Courts Pool/Tennis Courts Floor Location 1st/2nd 1st/2nd 1st/2nd 1st/2nd View Units/Fair Units/Average -1,5 Units/Average -1,5 Units/Average -1,5 Design (Style) Townhouse Townhouse Townhouse Townhouse Quality Construction Frame-Avg Frame-Avg Frame-Avg Frame-Avg Actual Age Condition Average Average Average Average Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Room Count , , Gross Living Area sq. ft. sq. ft. sq. ft. sq. ft ,78 +1, 1,413 1,343 Basement & Finished Slab Slab Slab Slab Rooms Below Grade N/A N/A N/A N/A Functional Utility Average Average Average Average Heating/Cooling FWA/CAC FWA/CAC FWA/CAC FWA/CAC Energy Efficient Items Standard Standard Standard Standard Garage/Carport 1 Blt-In Grg 1 Det Grg 1 Blt-In None +1, Porch/Patio/Deck Patio Porch Patio Patio X + 1, Net Adjustment (Total) Adjusted Sale Price Net Adj: 6% Comparables Gross Adj : 23% 18,15 Summary Sales Comparison Analysis. See Summary and Comments + X Net Adj: -3% Gross Adj: 14% -5 16,85 + X Net Adj: -2% Gross Adj: 11% -5 21,5 17, INCOME APPROACH TO VALUE (not required by Fannie Mae) N/A N/A N/A Estimated monthly Market Rent X Gross Rent Multiplier = Indicated Value by Income Approach (optional) Summary Income Approach (including support for market rent and GRM). Summary Income Approach (Including support for market rent and GRM). INCOME Indicated Value by Sales Comparison Approach The covenants allow for no more the 1% these units to be rented; therefore, income is not a motivation to purchase in this neighborhood and the income approach is not applicable. Indicated Value by: Sales Comparison Approach 17, Income Approach (if developed) N/A RECONCILIATION The sales comparison approach is considered the most reliable indicator value and is the only approach applicable to this appraisal. This appraisal is made X "as is," subject to completion per plans and specifications on the basis a hypothetical condition that the improvements have been subject to completed, subject to the following repairs or alterations on the basis a hypothetical condition that the repairs or alterations have been completed, or the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair. This report was prepared as an 'as is' report. Based on a complete visual inspection the interior and exterior areas the subject property, defined scope work, statement assumptions and limiting conditions, and appraiser's certification, my (our) opinion the market value, as defined, the real property that is the subject this report is 17, 9/28/211 as, which is the date inspection and the effective date this appraisal. Freddie Mac Form 465 March 25 Fannie Mae Form 173 March 25 Produced by ClickFORMS Stware

5 Summary and Comments This is a six month appraisal, the opinion value is slightly lower than the previous appraised value, but higher than the current listing price. The local market conditions are stable, but values have not increased. The comparables used in the prior report were appropriate for the time frame in which the report was completed. The Subject is listed for 1,935, LD 7/8/211. MPR differential due to flooring requirements implemented by the client. It was necessary to extend comparable sale search beyond the typical ranges due to lack townhome style condominiums with HOA fees and amenities. The typical townhomes in the subject's market area are not condominiums, and are in townhome communities with minimal or no fees. The subject and comparable sales are in similar subdivisions, Cobb Co school districts and market areas. Market reaction did not warrant bedroom adjustments to comparable sales. Comparable Sale # 1 is located in excess 1 mile and crosses main roads, yet remains in the subject's market area. Comparable Sale # 3 is located in excess 1 mile and crosses main roads, yet remains in the subject's market area. Comparable Sale # 2 is the most similar to the subject property and was given the most weight during the reconciliation process. Opinion value lower than sales prices but within adjusted sales prices. Buyer Incentives: It is typical in this market for sellers to pay closing cost or other related fees associated with a mortgage transaction, as an added incentive to purchase the property. Normal range is 3% to 4%. Produced by ClickFORMS Stware

6 Uniform Residential Appraisal Report This report form is designed to report an appraisal a one-unit property or a one-unit property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal a manufactured home or a unit in a condominium or cooperative project. This appraisal report is subject to the following scope work, intended use, intended user, definition market value, statement assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope work to include any additional research or analysis necessary based on the complexity this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser's continuing education or membership in an appraisal organization, are permitted. SCOPE OF WORK: The scope work for this appraisal is defined by the complexity this appraisal assignment and the reporting requirements this appraisal report form, including the following definition market value, statement assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual inspection the interior and exterior areas the subject property, (2) inspect the neighborhood, (3) inspect each the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report. INTENDED USE: The intended use this appraisal report is for the lender/client to evaluate the property that is the subject this appraisal for a mortgage finance transaction. INTENDED USER: The intended user this appraisal report is the lender/client. DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation a sale as a specified date and the passing title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms cash in U. S. dollars or in terms financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms fered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost the financing or concession but the dollar amount any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser's certification in this report is subject to the following assumptions and limiting conditions: 1. The appraiser will not be responsible for matters a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title. 2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions the improvements. The sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence hazardous wastes, toxic substances, etc.) observed during the inspection the subject property or that he or she became aware during the research involved in performing this appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge any hidden or unapparent physical deficiencies or adverse conditions the property (such as, but not limited to, needed repairs, deterioration, the presence hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field environmental hazards, this appraisal report must not be considered as an environmental assessment the property. 6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations the subject property will be performed in a pressional manner. Freddie Mac Form 7 March 25 Produced by ClickFORMS Stware Fannie Mae Form 14 March 25 5

7 Uniform Residential Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I have, at a minimum, developed and reported this appraisal in accordance with the scope work requirements stated in this appraisal report. 2. I performed a complete visual inspection the interior and exterior areas the subject property. I reported the condition the improvements in factual, specific terms. I identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity the property. 3. I performed this appraisal in accordance with the requirements the Uniform Standards Pressional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 4. I developed my opinion the market value the real property that is the subject this report based on the sales comparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approach for this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not develop them, unless otherwise indicated in this report. 5. I researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any fering for sale the subject property in the twelve months prior to the effective date this appraisal, and the prior sales the subject property for a minimum three years prior to the effective date this appraisal, unless otherwise indicated in this report. 6. I researched, verified, analyzed, and reported on the prior sales the comparable sales for a minimum one year prior to the date sale the comparable sale, unless otherwise indicated in this report. 7. I selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. I have not used comparable sales that were the result combining a land sale with the contract purchase price a home that has been built or will be built on the land. 9. I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales. 1. I verified, from a disinterested source, all information in this report that was provided by parties who have a financial interest in the sale or financing the subject property. 11. I have knowledge and experience in appraising this type property in this market area. 12. I am aware, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records and other such data sources for the area in which the property is located. 13. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable sources that I believe to be true and correct. 14. I have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject property, and the proximity the subject property to adverse influences in the development my opinion market value. I have noted in this appraisal report any adverse conditions (such as, but not limited to, needed repairs, deterioration, the presence hazardous wastes, toxic substances, adverse environmental conditions, etc.) observed during the inspection the subject property or that I became aware during the research involved in performing this appraisal. I have considered these adverse conditions in my analysis the property value, and have reported on the effect the conditions on the value and marketability the subject property. 15. I have not knowingly withheld any significant information from this appraisal report and, to the best my knowledge, all statements and information in this appraisal report are true and correct. 16. I stated in this appraisal report my own personal, unbiased, and pressional analysis, opinions, and conclusions, which are subject only to the assumptions and limiting conditions in this appraisal report. 17. I have no present or prospective interest in the property that is the subject this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or opinion market value in this appraisal report on the race, color, religion, sex, age, marital status, handicap, familial status, or national origin either the prospective owners or occupants the subject property or the present owners or occupants the properties in the vicinity the subject property or on any other basis prohibited by law. 18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause any party, or the attainment a specific result or occurrence a specific subsequent event (such as approval a pending mortgage loan application). 19. I personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If I relied on significant real property appraisal assistance from any individual or individuals in the performance this appraisal or the preparation this appraisal report, I have named such individual(s) and disclosed the specific tasks performed in this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and I will take no responsibility for it. 2. I identified the lender/client in this appraisal report who is the individual, organization, or agent for the organization that ordered and will receive this appraisal report. Freddie Mac Form 7 March 25 Fannie Mae Form 14 March 25 Produced by ClickFORMS Stware

8 Uniform Residential Appraisal Report 21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request the borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other secondary market participants; data collection or reporting services; pressional appraisal organizations; any department, agency, or instrumentality the United s; and any state, the District Columbia, or other jurisdictions; without having to obtain the appraiser s or supervisory appraiser s (if applicable) consent. Such consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media).. I am aware that any disclosure or distribution this appraisal report by me or the lender/client may be subject to certain laws and regulations. Further, I am also subject to the provisions the Uniform Standards Pressional Appraisal Practice that pertain to disclosure or distribution by me. 23. The borrower, another lender at the request the borrower, the mortgagee or its successors and assigns, mortgage insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part any mortgage finance transaction that involves any one or more these parties. 24. If this appraisal report was transmitted as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission this appraisal report containing a copy or representation my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version this appraisal report were delivered containing my original hand written signature. 25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions Title 18, United s Code, Section 11, et seq., or similar state laws. SUPERVISORY APPRAISER'S CERTIFICATION: The Supervisory Appraiser certifies and agrees that: 1. I directly supervised the appraiser for this appraisal assignment, have read the appraisal report, and agree with the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification. 2. I accept full responsibility for the contents this appraisal report including, but not limited to, the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification. 3. The appraiser identified in this appraisal report is either a sub-contractor or an employee the supervisory appraiser (or the appraisal firm), is qualified to perform this appraisal, and is acceptable to perform this appraisal under the applicable state law. 4. This appraisal report complies with the Uniform Standards Pressional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 5. If this appraisal report was transmitted as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission this appraisal report containing a copy or representation my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version this appraisal report were delivered containing my original hand written signature. APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature Name Robyn Echols Kemp Company Name Company Address 275 Hawk Trace Marietta, 366 Telephone Number Address robynek@bellsouth.net Date Signature and Report 9/29/211 Effective Date Appraisal 9/28/211 Certification # or License # CR or Other (describe) # Expiration Date Certification or License 4/3/212 Signature Name Company Name Company Address Telephone Number Address Date Signature Certification # or License # Expiration Date Certification or License SUBJECT PROPERTY ADDRESS OF PROPERTY APPRAISED 493 Lazy Hollow Ln Austell, 316 APPRAISED VALUE OF SUBJECT PROPERTY 17, LENDER/CLIENT Name FHA Company Name HomeTelos - 2A Company Address 1283 Murfreesboro Pike Nashville, TN Address Did not inspect subject property Did inspect exterior subject property from street Date Inspection Did inspect interior and exterior subject property Date Inspection COMPARABLE SALES Did not inspect exterior comparable sales from street Did inspect exterior comparable sales from street Date Inspection Freddie Mac Form 7 March 25 Produced by ClickFORMS Stware Fannie Mae Form 14 March 25 7

9 COMMENT ADDENDUM Borrower Property Address 493 Lazy Hollow Ln City Austell County Lender/Client HomeTelos - 2A Zip Code Cobb 316 Address 1283 Murfreesboro Pike Suite 2, Nashville, TN A Property Condition Inspection was completed by the PCR inspector on ( 3/31/211 ). The property condition report (PCR) was provided to the appraiser by the Client and is included with this appraisal. The report has been retained by the appraiser and is a part the appraiser's work file. The Mechanical Systems were not checked for functionality by the appraiser, however, a visual inspection was preformed. PCR report indicated that all systems were listed in satisfactory condition unless otherwise noted below. If this is proved to be false, the appraiser has the right to change opinion or estimated value this report. "All properties built prior to 1978 will require a lead base paint inspection and possible stabilization if FHA Financing is used'. Insurable With Repair Escrow: The subject property can be sold as insured with repair escrow because the cost repairs necessary to meet FHA's Minimum Property Requirements are estimated to be 5 or less. This complex appears maintained. The subject is in average condition, the complex in general is in average condition. The Remaining Economic Life ( based on the Observed Condition Method ) is 54 years with an effective age 6 years. The intended use for an REO appraisal is to estimate the "as is" Market Value the property in order to provide a basis for determining the listing price the property for marketing purposes. "The intended user a REO appraisal is the Asset Manager, the lender (under certain circumstances) and HUD/FHA." Utilization REO Sales: REO Sales will be utilized only when such sales are deemed to be the best available for the market area and they meet all the following criteria: 1. Located in the subject neighborhood or within reasonable proximity. 2. Comparable property subject to reasonable adjustment. 3. Sold with a willing buyer and seller. 4. Exposed to the market for a reasonable period. Georgia Real Estate Classifications and Regulation Act- My Analysis, opinions, and conclusions were developed, and this report has been prepared in conformity with the Georgia Real Estate Appraiser Classifications and Regulation Act and the rules and regulations the Georgia Real Estate Appraisers Board. [Real Estate Appraiser Classification and Regulation Act paragraph (1) (M) as amended August 1,26.] I certify, as the appraiser, that I have complied with the Home Valuation Code Conduct in all aspects the appraisal process. Legal Description and Parcel ID # Verified Thru GSCCA.org Produced by ClickFORMS Stware

10 MPR Addendum Produced by ClickFORMS Stware

11 The purpose this addendum is to provide the lender/client with a clear and accurate understanding the market trends and conditions prevalent in the subject neighborhood. This is a required addendum for all appraisal reports with an effective date on or after April 1, 29. Property Address City ZIP Code 493 Lazy Hollow Ln Austell 316 Borrower Instructions: The appraiser must use the information required on this form as the basis for his/her conclusions and must provide support for those conclusions, regarding housing trends and overall market conditions as reported in the Neighborhood section the appraisal report form. The appraiser must fill in all the information to the extent it is available and reliable and must provide analysis as indicated below. If any required data is unavailable or is considered unreliable, the appraiser must provide an explanation. It is recognized that not all data sources will be able to provide data for the shaded areas below; if it is available, however, the appraiser must include that data in the analysis. If data sources provide all the required information as an average instead the median, the appraiser should report the available figure and identify it as an average. Sales and listings must be properties that compete with the subject property, determined by applying the criteria that would be used by a prospective buyer the subject property. The appraiser must explain any anomalies in the data, such as seasonal markets, new construction, foreclosures, etc. Prior 7-12 Months Prior 4-6 Months Current - 3 Months Overall Trend Inventory Analysis Total # Comparable Sales (Settled) Increasing X Stable Absorption Rate (Total Sales/Months) Increasing X Stable Total # Comparable Active Listings X Stable Increasing Months Housing Supply (Total Listings/Ab. Rate) X Stable Increasing Prior 7-12 Months Prior 4-6 Months Current - 3 Months Overall Trend Median Sales & List Price, DOM, Sale/List % Median Comparable Sales Price Stable 21, 27, 27, X Increasing Median Comparable Sales Days on Market Stable X Increasing Median Comparable List Price Stable 55, 25, 45, X Increasing Median Comparable Listing Days on Market Stable X Increasing Median Sale Price as % List Price Increasing X Stable 82.% 88.% 89.% Seller-(developer, builder, etc,) paid financial assistance prevalent? No X Stable Increasing X Yes Explain in detail seller concessions trends for the past 12 months (e.g. seller contributions increased from 3% to 5%, increasing use buydowns, closing costs condo fees, options, etc.) MARKET RESEARCH & ALYSIS Market Conditions Addendum to the Appraisal Report Case No. Typical financing in this market requires seller participation 5%, the mortgage amount ( 5 points) or less. These seller concessions are generally comprised discount points and/or closing costs which have demonstrated little to no measurable impact on price. The frequency with which seller concessions are required in transactions tends to decrease as transaction price increases with the majority sales under 35, involving some seller participation in transaction costs. A review seller concessions for the previous 12 months continues to show that seller concessions appear in transactions randomly and sporadically. Are foreclosure sales (REO sales) a factor in the market? X Yes No If yes, explain (including the trends in listings and sales foreclosed properties). According to FMLS and MLS records there have been foreclosures sold in the past 12 months and foreclosures are currently 'active' listed in the subject's market area. Any effect on market value caused by foreclosure activity is reflected in the sales prices the comparable sales. While foreclosure activity is a factor in the market, it is but one factor. It is likely that market conditions will improve when employment and mortgage lending have stabilized; and the federal government allows market forces to changing levels price and economic activity. Cite data sources for above information. MLS Pro Summarize the above information as support for your conclusions in the Neighborhood section the appraisal report form. If you used any additional information, such as an analysis pending sales, and/or expired and withdrawn listings, to formulate your conclusions, provide both an explanation and support for your conclusions. CONDO/CO.OP PROJECTS All sales represented above are not comparable sales (properties similar age, size, style, design and condition) Comparable sales are noted on the top page 2. The analysis above represents ALL sales in the subject's market area. A twelve month analysis indicates property values are stable, the absorption rate is stable and market supply is in the typical ranges with a 5-6 month supply. If the subject is a unit in a condominium or cooperative project, complete the following: Project Name: Sweetwater Valley Condominiums Subject Project Data Prior 7-12 Months Prior 4-6 Months Current - 3 Months Overall Trend Total # Comparable Sales (Settled) Increasing Stable Absorption Rate (Total Sales/Months) Increasing Stable Total # Active Comparable Listings Stable Increasing Months Unit Supply (Total Listings/Ab. Rate) Stable Increasing Are foreclosures sales (REO sales) a factor in the project? No If yes, indicate the number REO listings and explain the trends in listings and sales X Yes foreclosed properties. According to FMLS and MLS records there have been foreclosures sold in the past 12 months and foreclosures are currently 'active' listed in the subject's market area. Any effect on market value caused by foreclosure activity is reflected in the sales prices the comparable sales. While foreclosure activity is a factor in the market, it is but one factor. It is likely that market conditions will improve when employment and mortgage lending have stabilized; and the federal government allows market forces to changing levels price and economic activity. Summarize the above trends and address the impact on the subject unit and project. Due to lack sales in the subject immediate market area appraiser was unable to access adequate viable data to analyze subject's complex. APPRAISER Signature Appraiser Name Company Name Company Address License/Certification # Address Freddie Mac Form 71 March 29 Signature Supervisor Name Company Name Company Address 275 Hawk Trace, Marietta, 366 License/Certification # CR Address robynek@bellsouth.net Produced by ClickFORMS Stware Robyn Echols Kemp Fannie Mae Form 14MC March 29 1

12 SUBJECT PHOTO ADDENDUM Borrower 493 Lazy Hollow Ln Property Address City Austell County HomeTelos - 2A Lender/Client Cobb Address 316 Zip Code 1283 Murfreesboro Pike Suite 2, Nashville, TN FRONT OF SUBJECT PROPERTY 493 Lazy Hollow Ln Date Taken 9/29/211 REAR OF SUBJECT PROPERTY Robyn Kemp Photographer/Appraiser Date Taken 9/29/211 STREET SCENE Robyn Kemp Photographer/Appraiser Date Taken 9/29/211 Produced by ClickFORMS Stware

13 Borrower Property Address 493 Lazy Hollow Ln City Austell County Lender/Client HomeTelos - 2A Zip Code Cobb 316 Address 1283 Murfreesboro Pike Suite 2, Nashville, TN AC Unit Furnace Garage Electric Panel /Water Heater Kitchen Half Bath Produced by ClickFORMS Stware

14 Borrower Property Address 493 Lazy Hollow Ln City Austell County Lender/Client HomeTelos - 2A Living Room Missing Flooring MPR Zip Code Cobb 316 Address 1283 Murfreesboro Pike Suite 2, Nashville, TN Bedroom Missing Carpet Common Bathroom Bedroom Missing Carpet Master Bathroom Master Bedroom Produced by ClickFORMS Stware MPR MPR Missing Carpet MPR 13

15 Borrower Property Address 493 Lazy Hollow Ln City Austell County Lender/Client HomeTelos - 2A Missing Flooring at common areas Attic Zip Code Cobb 316 Address 1283 Murfreesboro Pike Suite 2, Nashville, TN MPR Laundry Area Street address at front door Produced by ClickFORMS Stware

16 COMPARABLES Borrower 493 Lazy Hollow Ln Property Address City Austell County Lender/Client HomeTelos - 2A Cobb 316 Zip Code Address 1283 Murfreesboro Pike Suite 2, Nashville, TN COMPARABLE SALE # 135 Surrey Ln SW # 12 Marietta, 38 1 COMPARABLE SALE # 2743 Whitewater Ct # V Austell, COMPARABLE SALE # 182 Ashborough Rd SE # F Marietta, 367 Produced by ClickFORMS Stware

17 SKETCH ADDENDUM Borrower Property Address 493 Lazy Hollow Ln City Austell County Lender/Client HomeTelos - 2A Zip Code Cobb 316 Address 1283 Murfreesboro Pike Suite 2, Nashville, TN Master Bedroom 6 Liv ing Room Master Bath /2 Bath First Floor Area: Second Floor Area: 777 Bath Room 3 11 Kitchen 1 Blt-In Grg Area: 253 Bedroom 13 W/D B/Nook 8 Bedroom Patio 8 11 Calc ula tio n S um m a ry B1 D2 B3 D1 B2 A1 C1 Gran d Tot a l Li v i ng Area Ga rag e A rea Po rc h A re a Pa ti o/ Dec k A re a M is c. Area Ba s em ent A rea St orage A rea Lot Area D et a il Li v i ng Area Li v i ng Area First Floor 576. First Floor 576. Second Floor 777. B1: 3. X 11. = 33. Tot al Liv ing A re a B2: 11. X 3. = 33. Ga rag e A rea B3: 17. X 3. = 51. Attached Garage 253. Second Floor 777. Tot al Garage Area 253. D1: 13. X 14. = 182. Pa ti o/ Dec k A re a D2: 35. X 17. = 595. Patio 8. Tot al Liv ing A re a Tot al Pat i o/d ec k Area 8. Ga rag e A rea Attached Garage 253. A1: 23. X 11. = 253. Tot al Garage Area 253. Pa ti o/ Dec k A re a Patio 8. C1: 8. X 1. = 8. Tot al Pat i o/d ec k Area Produced by ClickFORMS Stware

18 LOCATION MAP ADDENDUM Borrower Property Address 493 Lazy Hollow Ln City Austell County Lender/Client HomeTelos - 2A Zip Code Cobb 316 Address 1283 Murfreesboro Pike Suite 2, Nashville, TN Produced by ClickFORMS Stware

19 Flood Map SUBJECT Produced by ClickFORMS Stware

20 ENVIRONMENTAL COMPLIANCE RECORD SINGLE FAMILY PROPERTY DISPOSITION FHA CASE NUMBER: PROPERTY ADDRESS: 493 Lazy Hollow Ln, Austell, 316 SOURCE DOCUMENTATION COMPLIANCE FINDINGS 1. HISTORIC PRESERVATION Property is X is not listed on the National Register Historic Places. Property is X is not located in an Historic District. Checked National Register Historic Places. Checked National Register Historic Places. Note: An appropriate deed restriction will be required if property meets either the foregoing conditions. 2. FLOODPLAIN Property is X is not located within the 1-year floodplain (Zones A and V). Panel #: X Map #: Date Map: 12/16/28 Note: Flood insurance may be required. 3. AIRPORT RUNWAY CLEAR ZONES (24 CFR 51D) Property is X is not located within boundary runway clear zone. If "yes", Has the airport operator declined to acquire the property? yes no A signed notice is required. (24 CFR Part 51D) Property not within 3, feet the runway clear zone. 4. SUMMARY Additional actions are X are not required on the basis the findings above. If additional actions are required, describe them in an attachment. Instructions for Completion Environmental Compliance Record Environmental Compliance. Single Family Property Disposition is subject to the environmental policy and procedures shown at 24 CFR Part 5.2, where applicable. An Environmental Compliance Record must be completed for each acquired property prior to listing for sale and the results considered in the development the terms and condition the sale. The Contractor shall use the format contained in Exhibit 4, attachments B-1. Preparing the Compliance Record. To document the reuslts compliance findings, use copies the appropriate floodplain and airport runway maps, and the National Register Historic Places, in order to identify those properties that are subject to these three requirements. instructions for completing the compliance findings on the Environmental Compliance Record are: 1. Historic Preservation. The National Register Historic Places identifies specific properties and historic districts which are subject to historic preservation requirements. If a HUD-Owned Property is listed on the register, or the district in which it is located is listed a, deed restriction must be prepared. Consult with counsel for approriate language to be included in the deed. 2. Floodplain. Based on the floodplain map, properties located in Special Flood Hazards Areas (SFHA) which are being sold with HUD-insured mortgages or with buydowns or cash rebates, are required to have flood insurance. At the time assignment a case to the closing agent, the closing agent must be alerted to this requirement and must ensure that the purchaser obtains flood insurance. Such insurance may be purchased from any state licensed agent. If a property is located in a SFHA in a community which is suspended from or is not participating in the National Flood Insurance Program, the property must be fered on an uninsured basis and without a buydown or cash rebate. Listing advertisements must disclose such properties. 3. Airport Runway Clear Zones. Based on airport clear zone maps, properties located within the runway clear zone must be fered to the airport operator before the public listing. Property will be sold to the airport in accordance with the policy on sales to local governments described in Exhibit 2. A decision by the airport operator not to purchase must be documented in the file, preferably in the form a letter from the airport operator. In the absence such a letter, a note to the file documenting the verbal response by the airport operator is sufficient. Bidders on properties located in runway clear zones must provide a signed Notice to Prospective Buyers Properties Located in Runway Clear Zones and Clear Zones (see Exhibit 4, Attachment B-2). In those few jurisdictions which have properties in runway clear zones, Selling Brokers must be provided with copies this notice and be advised that it must be included when submitting a bid on a property which is located in a runway clear zone. Listing for Sale. Any property which is subject to these historic, floodplain, or airport clear zone requirements must be so identified when listing the property for sale. NOTE: OTHER ENVIRONMENTAL STATUTES, EXECUTIVE ORDERS AND AUTHORITIES The remaining statutes and authorities cited at 24 CFR 5.4 do not require compliance because they are not relevant to property disposition actions which do not involve new construction. Preparer: Title: Appraiser Date: 9/29/211 Title: Date: Robyn Echols Kemp Supervisor: 19

21 Appraiser License Certificate Produced by ClickFORMS Stware

22 USPAP COMPLIANCE ADDENDUM Borrower/Client Address 493 Lazy Hollow Ln City Austell Lender/Client HomeTelos - 2A County Cobb Unit No. C Zip Code 316 APPRAISAL AND REPORT IDENTIFICATION This Appraisal Report is one the following types: Self Contained (A written report prepared under Standards Rule 2-2(a), pursuant to the Scope Work, as disclosed elsewhere in this report.) (A written report prepared under Standards Rule 2-2(b), pursuant to the Scope Work, as disclosed elsewhere in this report.) X Summary Restricted Use (A written report prepared under Standards Rule 2-2(c), pursuant to the Scope Work, as disclosed elsewhere in this report, restricted to the stated intended use by the specified client or intended user.) COMMENTS ON THE STANDARDS RULE 2-3 I certify that, to the best my knowledge and belief:. The statements fact contained in this report are true and correct.. The report analyses, opinions, and conclusions are limited only by the reported assumptions and are my personal, impartial, and unbiased pressional analyses, opinions, and conclusions.. I have no (or the specified) present or prospective interest in the property that is the subject this report and no (or specified) personal interest with respect to the parties involved.. I have no bias with respect to the property that is the subject this report or the parties involved with this assignment.. My engagement in this assignment was not contingent upon developing or reporting predetermined results.. My compensation for completing this assignment is not contingent upon the development or reporting a predetermined value or direction in value that favors the cause the client, the amount the value opinion, the attainment a stipulated result, or the occurrence a subsequent event directly related to the intended use this appraisal.. My analyses, opinions, and conclusions were developed and this report has been prepared, in conformity with the Uniform Standards Pressional Appraisal Practice.. I X have or have not made a personal inspection the property that is the subject this report.. No one provided significant real property appraisal assistance to the person signing this certification. (If there are exceptions, the name each individual providing significant real property appraisal assistance is stated elsewhere in this report. COMMENTS ON APPRAISAL AND REPORT IDENTIFICATION Note any USPAP related issues requiring disclosure and any mandated requirements: Note any USPAP related issues requiring disclosure and any mandated requirements: None MARKETING TIME AND EXPOSURE TIME FOR THE SUBJECT PROPERTY A reasonable marketing time for the subject property is day(s) utilizing market conditions pertinent to the appraisal assignment. day(s). X A reasonable exposure time for the subject property is 3-9 APPRAISER Signature Name Robyn Echols Kemp Date Signature 9/29/211 Certification # or License # CR Expiration Date Certification or License 4/3/212 Effective Date Appraisal 9/28/211 SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature Name Date Signature Certification # or License # Expiration Date Certification or License Supervisory Appraiser Inspection Subject Property: Did Not Exterior Only from street Interior and Exterior USPAP Compliance Addendum 7/6 Produced by ClickFORMS Stware

23 Property Condition Report Produced by ClickFORMS Stware