Form DCVR_LT "WinTOTAL" appraisal software by a la mode, inc ALAMODE

Transcription

1 File No. WRT-006(R) rev 2 W. Roy Tolson Asset Appraisal Group P.O. Box Phoenix, Arizona (602) voice roytolson@cox.net February 8, 20 Mr. Mark Figley, MAI KeyBank National Association 1675 Broadway, Ste. 400 Denver, Colorado re: KEYW and Dear Mr. Figley: At your request, a Summary Appraisal Report has been prepared for the above assignment. The purpose of this appraisal is to develop an opinion of the as is market value of the fee simple interest in the subject property, as of date of visual inspection. The subject property was viewed on February 6, 20 which represent the effective dates of the valuations. This report has been prepared in compliance with: the Uniform Standards of Professional Appraisal Practice (effective date January 1, 20) of the Appraisal Foundation; Title XI of the Federal Financial Institution s Reform, Recovery, and Enforcement Act (FIRREA); and KeyBank National Association Appraisal Guidelines. After considering all facts available, subject to the underlying assumptions and limiting conditions included, it is concluded the "as is" market value of the fee simple interest in the subject property as of the effective date is 60,000. The preceding as Is market value is predicated upon an exposure period and marketing time of three to six months, and assume the property is adequately marketed at prices commensurate with the respective opinions of value. As in the case of any narrative report, the reader s attention is directed to the underlying Limiting Conditions and Assumptions which are included with the report. This letter, in and of itself, is not an appraisal and only summarizes the value conclusion reached after analyzing the data contained in the accompanying narrative report. Respectfully submitted, W. Roy Tolson, SRA State of Arizona Certified General Real Estate Appraiser #30959 EXTRAORDINARY ASSUMPTIONS The "as is" market value is based on the following extraordinary assumptions: (1) market indicators related to the economy's performance are mixed, and forecasts vary widely about what lies ahead. Continued effects of the housing slowdown, increases in unemployment, failure of financial institutions, population flows, and loss of wages will continue to adversely affect real estate values. Unfortunately, lags in data reporting, and how analysts look at recent changes cloud interpretation of these measures and won't reveal a market change until six months after its occurrence. Significant reduction in population, income, wages and jobs could adversely affect the opinion of value. (2) Access to the subject property was denied, as such, an interior of the property was not conducted; therefore, this report is conditional upon the condition of the property being typical of the market for its age, and quality of construction. Notably, the subject property appears to be occupied from the cars parked in the driveway. Form DCVR_LT "WinTOTAL" appraisal software by a la mode, inc ALAMODE

2 W. Roy Tolson Client File #: KEYW Appraisal File #: WRT-006(R) rev 2 Summary Appraisal Report Residential Appraisal Company: Asset Appraisal Group Address: P.O. Box 45496, Phoenix, Arizona Form 0.03 Phone: Fax: Website: roytolson@cox.net Appraiser: W. Roy Tolson Co-Appraiser: AI Membership (if any): SRA MAI SRPA Associate Member AI Membership (if any): SRA MAI SRPA Associate Member Professional Affiliation: Phoenix Board of Realtors Professional Affiliation: roytolson@cox.net Client: Keybank National Association Contact: Mark Figley, MAI Address: 1675 Broadway #400, Denver, CO Phone: Fax: Mark_T_Figley@KeyBank.com SUBJECT PROPERTY IDENTIFICATION Address: 3707 West Quail Avenue City: Glendale County: Maricopa State: AZ ZIP: Legal Description: Lot 368 JADE PARK NORTH UNIT THREE, according to Book 148 of Maps, page 480, records of Maricopa County, Arizona ( and ) (Phoenix with a Glendale mailing address) Tax Parcel #: RE Taxes: Tax Year: 2009 Use of the Real Estate As of the Date of Value: Manufactured Home Use of the Real Estate Reflected in the Appraisal: Manufactured Home Opinion of highest and best use (if required): As legally permitted under current PAD zoning district SUBJECT PROPERTY HISTORY Owner of Record: Kassandra Kaye Melick-Hare Description and analysis of sales within 3 years (minimum) prior to effective date of value: See addendum... Description and analysis of agreements of sale (contracts), listings, and options: prior listings of the subject property in the prior 36 months. A search of the MLS did not provide an indication of any current or RECONCILIATIONS AND CONCLUSIONS Indication of Value by Sales Comparison Approach 60,000 Indication of Value by Cost Approach Indication of Value by Income Approach Final Reconciliation of the Methods and Approaches to Value: The research data revealed limited recent closed sales within the subject market area similar to the subject; the data used is considered of sufficient quality and quantity for analysis of the subject property. The sales used in the analyses for development of an opinion of value are suitable and considered applicable due to location, livable area, quality of construction, and close of escrow dates. The Sales Comparison Approach reveals an adjusted range of 29,400 to 70,900 and an "as is" market value opinion of 60,000. The subject's reported market value falls within the range of observed property values for the identified market area. Opinion of Value as of: 02/06/20 60,000 The above opinion is subject to: Hypothetical Conditions and/or Extraordinary Assumptions cited on the following page. * NOTICE: The Appraisal Institute publishes this form for use by appraisers where the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work product not called for in this form. The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis or any other work product provided by the individual appraiser(s). AI Reports AI-0.03 Summary Appraisal Report Residential Appraisal Institute 2008, All Rights Reserved December 2008 Form AI03 "WinTOTAL" appraisal software by a la mode, inc ALAMODE

3 Client: Keybank National Association Client File #: KEYW Subject Property: 3707 West Quail Avenue, Glendale, AZ Appraisal File #: WRT-006(R) rev 2 ASSIGNMENT PARAMETERS Intended User(s): Intended Use: KeyBank National Association Support for Financing Decisions This report is not intended by the appraiser for any other use or by any other user. Type of Value: Market Value Effective Date of Value: 02/06/20 Interest Appraised: Fee Simple Leasehold Other Hypothetical Conditions: (A hypothetical condition is that which is contrary to what exists, but is asserted by the appraiser for the purpose of analysis. Any hypothetical condition may affect the assignment results.) Extraordinary Assumptions: (An extraordinary assumption is directly related to a specific assignment and presumes uncertain information to be factual. If found to be false this assumption could alter the appraiser s opinions or conclusions. Any extraordinary assumption may affect the assignment results.) See addendum for extraordinary assumptions. In accordance with Standard Rule 2-2(b) of the Uniform Standard of Professional Appraisal Practice (USPAP), this is a summary appraisal report. SCOPE OF WORK Definition: The scope of work is the type and extent of research and analysis in an assignment. Scope of work includes the extent to which the property is identified, the extent to which tangible property is inspected, the type and extent of data research, and the type and extent of analysis applied to arrive at credible opinions or conclusions. The specific scope of work for this assignment is identified below and throughout this report. Scope of Subject Property Inspection/Data Sources Utilized Approaches to Value Developed Appraiser Cost Approach: Property Inspection: Yes No Is necessary for credible results and is developed in this analysis Date of Inspection: 02/06/20 Is not necessary for credible results; not developed in this analysis Is not necessary for credible results but is developed in this analysis Describe scope of Property Inspection, Source of Area Calculations and Data Sources Consulted: Access to the property under study was denied and only a street viewing was conducted. Area of the subject was taken from Sales Comparison Approach: Maricopa County Assessor records. Is necessary for credible results and is developed in this analysis Is not necessary for credible results; not developed in this analysis Co-Appraiser Is not necessary for credible results but is developed in this analysis Property Inspection: Yes No Date of Inspection: Income Approach: Describe scope of Property Inspection, Source of Area Calculations and Data Sources Consulted: Is necessary for credible results and is developed in this analysis Is not necessary for credible results; not developed in this analysis Is not necessary for credible results but is developed in this analysis Additional Scope of Work Comments: The improvement description and evaluation provided in this appraisal are based on the historical public records, and street viewing; the improvement size employed as the basis for appraisal is that obtained from public records. The reported value conclusion assumes there to be no hidden or unapparent structural defects of or damage to the improvements unless otherwise stated in this report. The documentation necessary to arrive at the market value is considered in this appraisal report. Only the Sales Comparison approach has been developed in this appraisal. According to public records, the subject was built in 1974 manufactured home) with an actual age of 36 years; due to the subjective nature of physical depreciation and the lack of subdivision lots similar to the subject for analysis, a cost approach is deemed unreliable. As the subject property is located in a market area which is predominantly owner-occupied, the research data provided insufficient rental data to develop an Income Approach. The appraisal conducted is considered to be complete in scope, and it is communicated in a summary format. Significant Real Property Appraisal Assistance: Disclose Name(s) and contribution: * NOTICE: The Appraisal Institute publishes this form for use by appraisers where the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work product not called for in this form. The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis or any other work product provided by the individual appraiser(s). AI Reports AI-0.03 Summary Appraisal Report Residential Appraisal Institute 2008, All Rights Reserved December 2008 Form AI03 "WinTOTAL" appraisal software by a la mode, inc ALAMODE

4 Client: Keybank National Association Client File #: KEYW Subject Property: 3707 West Quail Avenue, Glendale, AZ Appraisal File #: WRT-006(R) rev 2 MARKET AREA ANALYSIS Urban Suburban Rural Built Up Under 25% 25-75% Over 75% Growth Rapid Stable Slow Supply & Demand Shortage In Balance Over Supply Value Trend Increasing Stable Decreasing Typical Marketing Time Under 3 Months 3-6 Months Over 6 Months Single Family Profile Land Use Price 25,000 Low 1 Family 75 % Commercial % 85,000 High 50 Condo % Vacant % 55,000 Predominant 40 Multifamily % Parks 25 % Name: North Unit Three PUD Condo HOA: / Amenities: Market area description and characteristics: Market conditions of the subject neighborhood, community and subdivision generally mirror the greater Phoenix metropolitan market, of which it is a part. The subject market area is currently experiencing slow growth with supply of residential improvements in over-supply as indicated by home foreclosure and declining property values. Seller concessions of up to 3% of sales price is typically offered in the resale market. Due in part to recent failures and closing of local mortgage companies and financial institutions, third-party institutional financing has become unsettled causing higher underwriting guidelines for new homebuyers; however, loans remain attractive, at market rates, to qualified borrowers. Based on data reported by MLS for resale property, marketing times of 3-6 months are typical for competing properties. An exposure period of 3-6 months is assumed in this report. SITE ANALYSIS Dimensions: 83.97' x 120' x 88.50' x 120' Area: 9,917 Sq.Ft. View: Shape: Near Rectangular Drainage: Assumed to be engineered correctly Utility: Good Site ity/conformity To Zoning/Deed Restriction Size: View: Smaller than Typical Favorable Typical Typical Larger than Typical Less than Favorable Utilities Electric Public Other Gas Public Other Water Public Other Sewer Public Other Septic Zoning: PAD, Phoenix Covenants, Condition & Restrictions Yes No Unknown Legal No zoning Documents Reviewed Legal, non-conforming Yes No Illegal Ground Rent / Off Site Improvements Street Public Private concrete roll curb Alley Public Private Sidewalk Public Private Street Lights Public Private Site description and characteristics: The appraiser was not provided a title report for purposes of this report. Upon the appraisers' visual inspection, no adverse easements or encroachments were observed. The subject lot is typical in size for the subdivision. The site is at street grade and considered level. As vacant land, the subject may be improved with residential improvements. The subject is a manufactured home subdivision lot with surrounding manufactured home uses similar to the subject. There appears to be only utility easements and building set back requirements, that do not adversely affect development of the lot. HIGHEST AND BEST USE ANALYSIS Present Use Proposed Use Other Summary of highest and best use analysis: Highest and Best Use is defined as that reasonable and probable use that will support the highest present value, as defined, as of the effective date of the appraisal. When an appraisal is communicated by means of a form report, the highest and best use of the property is implicit in the type of form report used. Based on the subject s physical and locational characteristics, as well as zoning, the most logical use of the subject site would be for residential development. * NOTICE: The Appraisal Institute publishes this form for use by appraisers where the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work product not called for in this form. The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis or any other work product provided by the individual appraiser(s). AI Reports AI-0.03 Summary Appraisal Report Residential Appraisal Institute 2008, All Rights Reserved December 2008 Form AI03 "WinTOTAL" appraisal software by a la mode, inc ALAMODE

5 Client: Keybank National Association Client File #: KEYW Subject Property: 3707 West Quail Avenue, Glendale, AZ Appraisal File #: WRT-006(R) rev 2 IMPROVEMENTS ANALYSIS General Design: Manufactured No. of Units: 1 No. of Stories: 1 Actual : 11 Effective : 11 Existing Under Construction Proposed Attached Detached Manufactured Modular Other: Only a street viewing was conducted Exterior Elements Roofing: Asphalt shingle Siding: Siding Windows: Aluminium Patio Deck Porch Covered entry Pool Fence Mixed Other: Only a street viewing was conducted; therefore only the front of the subject was viewed. Interior Elements Flooring: Unknown Walls: Painted drywall Fireplace # appears wood burning Kitchen: Refrigerator Range Oven Fan/Hood Microwave Dishwasher Countertops: Other: No interior inspection was conducted; as such, it is assumed that all typical appliances are installed and operable Foundation Crawl Space Slab Basement Other: Attic Scuttle Drop Stair Stairway Finished Mechanicals HVAC: FWA Fuel: Gas Air Conditioning: Refrigeration Car Storage Driveway Concrete Garage Carport Finished Other Elements Above Grade Gross Living Area (GLA) Living Dining Kitchen Den Family Rec. Bdrms # Baths Utility Other Area Sq. Ft. Level 1 Level 2 Finished area above grade contains: Bedroom(s): Bath(s): GLA: 1,568 Summarize Above Grade Improvements: The subject consists of Average Quality manufactured home improvements; number and details of the rooms was not included in public records. 1,568 Below Grade Area or Other Area Living Dining Kitchen Den Family Rec. Bdrms # Baths Utility % Finished Area Sq. Ft. Below Grade Other Area Summarize below grade and/or other area improvements: Discuss physical depreciation and functional or external obsolescence: As noted, only an exterior street viewing was conducted, therefore it is assumed that the subject has been maintained to neighborhood standards since original construction; and the floor plan functional. The subject appears to suffer from external obsolescence due in part to declining market values of the overall Phoenix metropolitan area and a national and state economy. Discuss style, quality, condition, size, and value of improvements including conformity to market area: The subject is Average Quality construction. It appears from public records and visual inspection, that the livable area of the subject, design, finish and quality of construction conforms to the surrounding neighborhood. * NOTICE: The Appraisal Institute publishes this form for use by appraisers where the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work product not called for in this form. The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis or any other work product provided by the individual appraiser(s). AI Reports AI-0.03 Summary Appraisal Report Residential Appraisal Institute 2008, All Rights Reserved December 2008 Form AI03 "WinTOTAL" appraisal software by a la mode, inc ALAMODE

6 Client: Keybank National Association Client File #: KEYW Subject Property: 3707 West Quail Avenue, Glendale, AZ Appraisal File #: WRT-006(R) rev 2 SALES COMPARISON APPROACH ITEM SUBJECT COMPARISON 1 COMPARISON 2 COMPARISON 3 Address 3707 West Quail Avenue 3525 West Abraham Lane 36 West Salter Drive 3538 West Monona Drive Glendale, AZ Glendale, AZ Glendale, AZ Glendale, AZ Proximity to Subject Data Source/ Verification 0.28 miles NE MLS MCR miles NE MLS MCR miles E MLS MCR Original List Price 88,900 84, ,900 Final List Price 82,500 65,000 89,900 Sale Price 82,000 60,000 70,000 Sale Price % of Original List % 92.2 % 71.4 % 60.9 % Sale Price % of Final List % 99.4 % 92.3 % 77.9 % Closing Date Days On Market Price/Gross Living Area 03/18/ /31/ /27/ DESCRIPTION DESCRIPTION +(-) Adjustment DESCRIPTION +(-) Adjustment DESCRIPTION +(-) Adjustment Financing Type Concessions Contract Date Cov. Loan 80,514 known 03/03/2009 Cov. Loan 60,000 known -13,500 05/28/2009 Cash known -7,200 08/21/2009-5,250 Site Size Site Views/Appeal Design and Appeal Quality of Construction Condition Above Grade Bedrooms 9,917 Sq.Ft. Manf./Average Average 11 Average Bedrooms 9,856 s.f. Manf./Average 21 Superior Bedrooms 2 9,670 s.f. Manf./Average +,000 -,000 Bedrooms 2 9,406 s.f. Manf./Average Bedrooms 3 Above Grade Baths Baths Baths 2 Baths 2 Baths 2 Gross Living Area 1,568 Sq.Ft. 1,392 Sq.Ft. +4,400 1,204 Sq.Ft. +9,0 1,456 Sq.Ft. +2,800 Below Grade Area Below Grade Finish Other Area Functional Utility Heating/Cooling Car Storage Good FWA/Refrig Off street FWA/Refrig FWA/Refrig 1-car garage -2,000 Off street FWA/Refrig Off street Net Adjustment (total) + -11,0 + 1, ,450 Net Adj % Net Adj. 3.2 % Net Adj. 3.5 % Adjusted Sale Price Gross Adj % 70,900 Gross Adj % 61,900 Gross Adj % 67,550 Prior Transfer /01/08;price 98,500; mortgage public records indicate no transfers Subsequent transfer 8/26/ /15/09 bank related 67,500 History 99,250; sale appears related in prior 12 months appears related (MCR ) (MCR ) Comments and reconciliation of the sales comparison approach: Each of the comparable sales is located within the subject market area with similar influences. The comparable sales data presented in the Sales Comparison Approach were researched through the local Multiple Listing Service (MLS), and have been verified as closed through the use of published county records. The description of each of the comparable sales is based on data reported by MLS, public records, an exterior street viewing and is assumed to be accurate. Any adjustments applied to the sales for features or characteristics which differ from those of the subject are based on the appraiser's observation of the market and their professional judgment. Prior Transfers: The transfer date reflected for each of the comparables is the recordation date of transfer. Finance concessions are not reflected in the affidavit of value or a part of public records. Indication of Value by Sales Comparison Approach 60,000 * NOTICE: The Appraisal Institute publishes this form for use by appraisers where the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work product not called for in this form. The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis or any other work product provided by the individual appraiser(s). AI Reports AI-0.03 Summary Appraisal Report Residential Appraisal Institute 2008, All Rights Reserved December 2008 Form AI03 "WinTOTAL" appraisal software by a la mode, inc ALAMODE

7 ADDITIONAL COMPARABLE SALES Client: Keybank National Association Client File #: KEYW Subject Property: 3707 West Quail Avenue, Glendale, AZ Appraisal File #: WRT-006(R) rev 2 SALES COMPARISON APPROACH ITEM SUBJECT COMPARISON 4 COMPARISON 5 COMPARISON 6 Address 3707 West Quail Avenue 3532 West Monona Drive 3808 West Abraham Lane Glendale, AZ Glendale, AZ Glendale, AZ Proximity to Subject Data Source/ Verification 0.22 miles E MLS MCR miles N MLS MCR Original List Price 89,000 54,000 Final List Price 39,000 43,200 Sale Price 25,000 43,200 Sale Price % of Original List % 28.1 % 80.0 % % Sale Price % of Final List % 64.1 % 0.0 % % Closing Date Days On Market 11/30/ Active Listing 89 Price/Gross Living Area DESCRIPTION DESCRIPTION +(-) Adjustment DESCRIPTION +(-) Adjustment DESCRIPTION +(-) Adjustment Financing Type Concessions Contract Date Site Size Site Views/Appeal Design and Appeal Quality of Construction Condition 9,917 Sq.Ft. Manf./Average Average 11 Average Cash known 11/23/2009 9,531 s.f. Manf./Average 17 Cash known Active Listing 9,576 s.f. Manf./Average +3, ,500 Above Grade Bedrooms Bedrooms Bedrooms 3 Bedrooms 3 Bedrooms Above Grade Baths Baths Baths 2 Baths 2 Baths Gross Living Area 1,568 Sq.Ft. 1,512 Sq.Ft. +1,400 1,404 Sq.Ft. +4,0 Sq.Ft. Below Grade Area Below Grade Finish Other Living Area Functional Utility Heating/Cooling Car Storage Good FWA/Refrig Off street FWA/Refrig Off street FWA/Refrig 2-car carport -4,000 Net Adjustment (total) + 4, ,600 + Net Adj % Net Adj. 8.3 % Net Adj. % Adjusted Sale Price Gross Adj % 29,400 Gross Adj % 46,800 Gross Adj. % Prior Transfer /01/08;price 98,500; mortgage 03/11/09 bank related 65,700 09/24/09 & 02/13/09 Bank related History 99,250; sale appears related (MCR ) (MCR & ) Comments: Notably, Comparable 5 is an active listing and presented as indicator of current market conditions; least weight is given to Comparable 4 a bank related sale typically priced for a "quick sale" and a short marketing period. Adjustment Percentage Guideline Comment: Individual and accumulated adjustment percentages may exceed guidelines due in part to the limited number of transactions similar to the subject, current (declining) market conditions and physical characteristics including: age, livable area, and bath count. Additionally, individual and accumulated percentage adjustments can be adversely affected by lower sales prices and typical costs associated with differences in physical characteristics. * NOTICE: The Appraisal Institute publishes this form for use by appraisers where the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work product not called for in this form. The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis or any other work product provided by the individual appraiser(s). AI Reports AI-0.03 Summary Appraisal Report Residential Appraisal Institute 2008, All Rights Reserved December 2008 Form AI03.(AC) "WinTOTAL" appraisal software by a la mode, inc ALAMODE

8 Client: Keybank National Association Client File #: KEYW Subject Property: 3707 West Quail Avenue, Glendale, AZ Appraisal File #: WRT-006(R) rev 2 STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is subject to the following assumptions and limiting conditions: This report is prepared using forms developed and copyrighted by the Appraisal Institute. However, the content, analyses, and opinions set forth in this report are the sole product of the appraiser. The Appraisal Institute is not liable for any of the content, analyses, or opinions set forth herein. No responsibility is assumed for matters legal in character or nature. No opinion is rendered as to title, which is assumed to be good and marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, having responsible ownership and competent management. I have examined the property described herein exclusively for the purposes of identification and description of the real property. The objective of our data collection is to develop an opinion of the highest and best use of the subject property and make meaningful comparisons in the valuation of the property. The appraiser s observations and reporting of the subject improvements are for the appraisal process and valuation purposes only and should not be considered as a warranty of any component of the property. This appraisal assumes (unless otherwise specifically stated) that the subject is structurally sound and all components are in working condition. I will not be required to give testimony or appear in court because of having made an appraisal of the property in question, unless specific arrangements to do so have been made in advance, or as otherwise required by law. I have noted in this appraisal report any significant adverse conditions (such as needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) discovered during the data collection process in performing the appraisal. Unless otherwise stated in this appraisal report, we have no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and have assumed that there are no such conditions and make no guarantees or warranties, express or implied. We 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 I am not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable public and/or private sources that I believe to be true and correct. I will not disclose the contents of this appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, and/or applicable federal, state or local laws. The Client is the party or parties who engage an appraiser (by employment or contract) in a specific assignment. A party receiving a copy of this report from the client does not, as a consequence, become a party to the appraiser-client relationship. Any person who receives a copy of this appraisal report as a consequence of disclosure requirements that apply to an appraiser s client, does not become an intended user of this report unless the client specifically identified them at the time of the assignment. The appraiser's written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. A true and complete copy of this report contains 13 pages including exhibits which are considered an integral part of the report. The appraisal report may not be properly understood without access to the entire report. If this valuation conclusion is subject to satisfactory completion, repairs, or alterations, it is assumed that the improvements will be completed competently and without significant deviation. VALUE DEFINITION Market Value Definition (below) Alternate Value Definition (attached) MARKET VALUE is defined as 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 and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of 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 acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of 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. Source: The Dictionary of Real Estate Appraisal, 4th ed., Appraisal Institute * NOTICE: The Appraisal Institute publishes this form for use by appraisers where the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work product not called for in this form. The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis or any other work product provided by the individual appraiser(s). AI Reports AI Assumptions and Limiting Conditions/Certification Appraisal Institute 2008, All Rights Reserved December 2008 Form AI9003 "WinTOTAL" appraisal software by a la mode, inc ALAMODE

9 Client: Keybank National Association Client File #: KEYW Subject Property: 3707 West Quail Avenue, Glendale, AZ Appraisal File #: WRT-006(R) rev 2 APPRAISER CERTIFICATION I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analysis, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analysis, opinions, and conclusions. I have no present (unless specified below) or prospective interest in the property that is the subject of this report, and I have no (unless specified below) personal interest with respect to the parties involved. I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment. My engagement in this assignment was not contingent upon the developing or reporting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the use of this appraisal. My analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. Individuals who have provided significant real property appraisal assistance are named below. The specific tasks performed by those named are outlined in the Scope of Work section of this report. Name(s) As previously identified in the Scope Of Work section of this report, the signer(s) of this report certify to the inspection of the property that is the subject of this report as follows: Property inspected by Appraiser Yes No Property inspected by Co-Appraiser Yes No SUPPLEMENTAL CERTIFICATION STATEMENT I certify that, to the best of my knowledge and belief: If a signed copy of this report has been transmitted electronically, the digital signatures used in this report were taken from original signatures furnished by the appraiser(s). The software program utilized in this report provides a security feature that protects the integrity of the appraiser(s) signature by a password protection system and the appraiser has sole personalized control of the affixing signature. I have not completed any work or assignments in the prior 36 months on the subject property. ADDITIONAL CERTIFICATION FOR APPRAISAL INSTITUTE MEMBERS Appraisal Institute Member Certify: The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. Designated Appraisal Institute Member Certify: As of the date of this report, I have / have not completed the continuing education program of the Appraisal Institute. APPRAISER: Signature Name W. Roy Tolson Report Date Trainee 02/08/20 Licensed Certified Residential Certified General License # State AZ Expiration Date 3/31/2011 Designated Appraisal Institute Member Certify: As of the date of this report, I have / have not completed the continuing education program of the Appraisal Institute. CO-APPRAISER: Signature Name Report Date Trainee Licensed Certified Residential Certified General License # State Expiration Date * NOTICE: The Appraisal Institute publishes this form for use by appraisers where the appraiser deems use of the form appropriate. Depending on the assignment, the appraiser may need to provide additional data, analysis and work product not called for in this form. The Appraisal Institute plays no role in completing the form and disclaims any responsibility for the data, analysis or any other work product provided by the individual appraiser(s). AI Reports AI Assumptions and Limiting Conditions/Certification Appraisal Institute 2008, All Rights Reserved December 2008 Form AI9003 "WinTOTAL" appraisal software by a la mode, inc ALAMODE

10 Supplemental Addendum File No. WRT-006(R) rev 2 Client Keybank National Association Property Address City 3707 West Quail Avenue Glendale County Maricopa State AZ Zip Code Borrower PURPOSE AND INTENDED USE OF THE APPRAISAL The purpose of this appraisal is to develop an opinion of the "as is" market and a "disposition" value of the fee simple interest in the subject property for OREO/Pre-Foreclosure. The intended use of this report is for support for financing decisions and its intended user is the client KeyBank National Association. The reported conclusion reflects the value of the real estate only; no items of personalty were included in the valuation analysis. This appraisal has been prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP), the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), as well as the additional appraisal requirements, if any, of the client. In addition, I certify that, to the best of my knowledge and belief, the reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. SCOPE OF THE APPRAISAL The scope of the appraisal requires compliance with the Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Appraisal Institute. The standards contain rules that must be followed and specific guidelines that deal with the procedures to be followed in developing an appraisal, analysis, or opinion. These uniform standards set the requirements to communicate the appraisers' analysis, opinions, and conclusions in a manner that will be meaningful and not misleading in the marketplace. The scope of the assignment further requires compliance with the client's requirements in the order provided to the appraiser. Only the Sales Comparison approach has been developed in this appraisal. The Cost and Income Approaches are considered inapplicable. The subject property data such as size, location, and zoning are considered. The appraisal is based on the information gathered by the appraiser from public records, other identified sources, viewing of the neighborhood, the sources and data are considered reliable. When conflicting information was provided, the source deemed most reliable has been used. The data is used to consider the highest and best use of the subject property and to conclude an opinion of the market value. Data believed to be unreliable was not included in the report nor used as a basis for the value conclusion. A summary appraisal report on the subject property has been prepared. The documentation necessary to arrive at the market value is considered in this appraisal report. The appraiser has conducted only an exterior "drive-by" viewing of the subject property; no physical measurement of the subject nor interior visual inspection was conducted. The improvement size estimate reported in this appraisal is based on public tax records. Additional descriptive data for the property is derived from the appraiser's visual street assessment of the property. The description and evaluation provided in this appraisal are based on the information provided by the third-party sources cited and the appraiser's observations, but are not intended to take the place of a professional structural building inspection. The reported value conclusion assumes there to be no hidden or unapparent structural defects of or damage to the improvements unless otherwise stated in this report. The appraiser lacks the knowledge and experience with respect to the detection and measurement of hazardous substances. Therefore, this assignment does not cover the presence or absence of such substances as discussed in the Underlying Assumptions addendum. However, any visual or obviously known hazardous substances affecting the property will be reported and an indication of is impact on value will be discussed. SUBJECT PROPERTY HISTORY The transfer date reflected by the Maricopa County Recorder is the recordation date of transfer. Finance concessions are not reflected in the affidavit of value or a part of public records. The research data revealed three transfers in the prior 36 months that appear related : (1) /01/08 (MCR ) transfer from Terrence E. Barr (seller) to Kassandra Kaye Melick-Hare (buyer) for 98,500 with a 99,250 mortgage; (2) 07/25/2007 (MCR ) between Kassandra Hare (seller) and Terrence E. Barr (buyer) no information on the sales price/no new mortgage; (3) 01/04/07 (MCR ) Terrence Barr (seller) and Kassandra Hare (buyer) no information on the sales price/no new mortgage. No other transfers were noted. PROPERTY TAX COMMENT According to the Maricopa County Treasure, the 2008 real property taxes in the amount of are delinquent and payable by certified fund. Additionally, the 2009 real property taxes in the amount of are due. FLOOD RATE MAP According to Flood Insurance Rate Map Number 04013C1195F, dated September 30, 2005, prepared by the Federal Emergency Management ncy, the site is located in Zone X500. The subjects flood rate map of Zone X500 is not considered a special flood hazard area and flood insurance is not typically required. Form TADD_LT "WinTOTAL" appraisal software by a la mode, inc ALAMODE

11 Supplemental Addendum File No. WRT-006(R) rev 2 Client Keybank National Association Property Address City 3707 West Quail Avenue Glendale County Maricopa State AZ Zip Code Borrower MARKET COMMENT The subject neighborhood appears to exhibit a typical percentage of decline with a number of REO sales that are indicative of declining property values. Third-party institutional financing is more difficult with the cancellation of loan programs and closure of mortgage. The instability of financial markets continues to adversely affect the current market. Bank related sales In today s real estate market, the type of homebuyers involved in the sales is important; an owner occupied sale must be weighed against an investor sale in providing a opinion of value. For nearly all real estate sellers, including lenders that have foreclosed, there is a common issue: Who are the buyers for the subject and who will pay the highest price? In most markets, buyers work with real estate professionals in researching their alternatives and then make a decision to buy based on the current options available. If buyers are attempting to buy homes for themselves or their families, the alternative of purchasing a foreclosed or REO (real estate owned) property may not be possible to time constraints, schools, employment and other reasonable factors. Foreclosed property may be the lowest priced, but there may be many buyers-real estate investors that are willing to purchase a property, and invest time and money to make it profitable. Other questions include (1) would the typical owner-occupant buyer have enough cash for a down payment and to cover repairs and replacements, (2) how long will it take complete the repairs, (3) have all replacements and repairs been identified, and (4) what finance options are available to me. Regardless of whether a property is purchased for occupancy or investment, the concept of buying property to make a profit versus buying property to occupy it should be recognized by all and therefore considered when analyzing the market. Current listings have been given considerable weight in the subject analysis in considering adjustments to sales selected and presented in this report. Current listings indicate and support a declining market and therefore lender related sales are not adjusted and considered to reflect current market conditions. COMMENTS ON SALES COMPARISON APPROACH The initial comparable sale search focused on sales with transaction dates within the prior 3 months, pending sales, active listings located within the subject subdivision; furthermore, a GLA range of 1,400 to 1,800 square feet and manufactured home design. The initial search resulted in limited transactions requiring a longer search period (one year) providing recent sales, pending and active listing presented for analyses. The sales considered the most representative of the subject and provide a reasonable estimate of market appeal and marketability of the subject property have been included in the Sales Comparison Approach. Any adjustments applied to the sales for features or characteristics which differ from those of the subject are based on the appraiser's observation of the market and their professional judgment. A downward time adjustment a has been applied to Comparables 1, 2 and 3 for declining market conditions determined for the subject property from 1.0% to 2.0% per month applied at 1.5% for each month from contract date to effective date of the appraisal. Public records indicate the subject was built in 1999 with an actual age of 11 years; an adjustment is deemed necessary for differences in age and has been applied accordingly. Each of the sales are smaller than the subject, an adjustment has been made for differences in livable area using an incremental market supported adjustment of per square foot for differences. Comparables 1 and 5 are improved with covered parking requiring a downward adjustment. Additional adjustments applied to the sales, if any, are considered to be self-explanatory. Reconciliation - Secondary weight has been given to Comparable 4 as the sale is bank related typically at prices reflective of sharp reductions for limited marketing time, cash sale and condition warranties; Comparable 5 is an active listing and given considerable weight in the final weighted reconciliation. Comparables 1, 2 and 3 are given equal weight. Therefore, a weighted average provides an indication of value of 60,000 using the sales comparison approach. MARKETING TIME AND EXPOSURE TIME FOR THE SUBJECT PROPERTY Exposure period is typically a function of asking price and marketing techniques. A reasonable exposure time of three months for the subject property utilizing market conditions pertinent to the appraisal assignment. The estimate for exposure period for the subject property has been based on actual exposure periods employed in the approaches contained in the report. A reasonable marketing time of three months for the subject property utilizing market conditions pertinent to the appraisal assignment. EXTRAORDINARY ASSUMPTIONS The "as is" market value is based on the following extraordinary assumptions: (1) market indicators related to the economy's performance are mixed, and forecasts vary widely about what lies ahead. Continued effects of the housing slowdown, increases in unemployment, failure of financial institutions, population flows, and loss of wages will continue to adversely affect real estate values. Unfortunately, lags in data reporting, and how analysts look at recent changes cloud interpretation of these measures and won't reveal a market change until six months after its occurrence. Significant reduction in population, income, wages and jobs could adversely affect the opinion of value. (2) Access to the subject property was denied, as such, an interior of the property was not conducted; therefore, this report is conditional upon the condition of the property being typical of the market for its age, and quality of construction. Notably, the subject property appears to be occupied from the cars parked in the driveway. Form TADD_LT "WinTOTAL" appraisal software by a la mode, inc ALAMODE

12 Subject Photo Page Client Keybank National Association Property Address City 3707 West Quail Avenue Glendale County Maricopa State AZ Zip Code Borrower Front View 3707 West Quail Avenue Sales Price Gross Living Area 1,568 Total Rooms 8 Total Bedrooms Total Bathrooms View Site 9,917 Sq.Ft. Quality Average 11 Looking southeast Front View Looking southwest Street View Looking east - subject to right in photograph Form LPICPIX.DSS_LTR "WinTOTAL" appraisal software by a la mode, inc ALAMODE

13 Flood Map Client Keybank National Association Property Address City 3707 West Quail Avenue Glendale County Maricopa State AZ Zip Code Borrower Form MAP_LT.FLOOD "WinTOTAL" appraisal software by a la mode, inc ALAMODE

14 Comparable Sales Map Client Keybank National Association Property Address City 3707 West Quail Avenue Glendale County Maricopa State AZ Zip Code Borrower Form MAP_LT.LOC "WinTOTAL" appraisal software by a la mode, inc ALAMODE

15 Comparable Photo Page Client Keybank National Association Property Address City 3707 West Quail Avenue Glendale County Maricopa State AZ Zip Code Borrower Comparable West Abraham Lane Prox. to Subject 0.28 miles NE Sales Price 82,000 Gross Living Area 1,392 Total Rooms Total Bedrooms 2 Total Bathrooms 2 View Site 9,856 s.f. Quality 21 Comparable 2 36 West Salter Drive Prox. to Subject 0.29 miles NE Sales Price 60,000 Gross Living Area 1,204 Total Rooms Total Bedrooms 2 Total Bathrooms 2 View Site 9,670 s.f. Quality Comparable West Monona Drive Prox. to Subject 0.21 miles E Sales Price 70,000 Gross Living Area 1,456 Total Rooms Total Bedrooms 3 Total Bathrooms 2 View Site 9,406 s.f. Quality Form LPICPIX.DS%_LTR "WinTOTAL" appraisal software by a la mode, inc ALAMODE

16 Comparable Photo Page Client Keybank National Association Property Address City 3707 West Quail Avenue Glendale County Maricopa State AZ Zip Code Borrower Comparable West Monona Drive Prox. to Subject 0.22 miles E Sales Price 25,000 Gross Living Area 1,512 Total Rooms Total Bedrooms 3 Total Bathrooms 2 View Site 9,531 s.f. Quality 17 Comparable West Abraham Lane Prox. to Subject 0.15 miles N Sales Price 43,200 Gross Living Area 1,404 Total Rooms Total Bedrooms 3 Total Bathrooms 2 View Site 9,576 s.f. Quality 18 Prox. to Subject Sales Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms View Site Quality Comparable 6 Form LPICPIX.DS%_LTR "WinTOTAL" appraisal software by a la mode, inc ALAMODE