source:
  type: guide
  id: va-m26-7-ch11-t20
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 20 — Liquidation
    Appraisals
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 20 — Liquidation
    Appraisals.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch11-t20-full
  canonical_id: va-m26-7-ch11-t20-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 20 — Liquidation
    Appraisals
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 20 — Liquidation
      Appraisals
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: faa7d8c84a0580f3
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:960cb068c0b142cd1bb4a0e38f29c6c5b725d24095781b92c663a83e9fd36263
    paragraph_quote: '20. Liquidation Appraisals Change Date February 22, 2019 • This
      Chapter has been revised in its entirety. a. Requested by the Servicer When
      a VA-guaranteed loan is in default, a liquidation appraisal should be requested
      by the servicer no later than 30 days prior to the estimated or scheduled sale
      date. b. Timeliness Standard The timeliness requirement for liquidation appraisals
      is 5 business days (see Chapter 10, Section 7 of this handbook). c. Servicer
      to Assist Appraiser in Obtaining Access to the Property Servicers are required
      to assist the appraiser in obtaining access to the interior of the property
      and should provide: • for occupied properties, the name and telephone number
      of the current or last known occupant, or • for vacant properties, the location
      of the keys to the property or contact information for a person who can promptly
      provide the appraiser with access to the interior of the property. d. Occupied
      Property Access Attempts If the property is occupied, the appraiser must gain
      access to the interior, unless: • the owner or occupant has permanently refused
      the appraiser’s request for access, • the appraiser considers access to present
      a legitimate hazard, • at least one attempt to visit the property and two or
      more calls, on different days and times to increase the likelihood of reaching
      the occupant, have not resulted in access, or • the appraiser has made three
      appointments, all of which have been broken. Continued on next page VA Pamphlet
      26-7, Revised Chapter 11: Appraisal Report 11-29 20. Liquidation Appraisals,
      continued e. Vacant Property Access Attempts If the property is vacant, the
      appraiser must gain access to the interior, unless: • jurisdictional law prohibits
      the lender from gaining or assisting in gaining access to the property, and
      the RLC has waived such access, • on a case-by-case basis, the RLC has waived
      access after considering other valid extenuating circumstances (such as, the
      owner’s personal effects remain in a vacant property causing legitimate concern
      about exposure to litigation), or • the RLC has approved a request to waive
      the servicer’s responsibility to assist the appraiser in obtaining access. f.
      Requirements if No Access Gained If interior access is not gained, the appraiser
      must: • make reasonable efforts to verify the interior condition by the best
      available means, for example, information from listings of the property on the
      market, or property assessment records, and • make reasonable assumptions about
      the interior condition as well as any potential MPR and cosmetic repairs. g.
      No Borrower to be Named on the Appraisal Since there is no borrower on a liquidation
      appraisal, the appraiser must insert “n/a” in the “Borrower” field. Continued
      on next page VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 11-30 20.
      Liquidation Appraisals, continued h. As-is value The fee appraiser’s value estimate
      for all liquidation appraisals will be for the subject property in its “as is”
      condition. VA liquidation appraisals are prepared under the same definition
      of market value as origination appraisals, not a discounted or forced sale value.
      Consequently, a property which needs no repairs should appraise for the same
      value on a liquidation appraisal and an origination appraisal. i. Liquidation
      Addendum An addendum to the liquidation appraisal must be provided with the
      following information: • whether the property is occupied or vacant, • whether
      or not access to the interior was gained, • if access was not gained, details
      of attempts to gain access must be provided in accordance with item d or e above,
      • if the property is vacant, whether or not the property was secure, • any repairs
      urgently needed, such as securing the dwelling or securing a swimming pool,
      • information about three current listings or pending sales, including the length
      of time on the market, the current listing price, any known price changes, and
      a short statement describing how each property compares to the subject property,
      and • an itemized list of any MPR repair items and any cosmetic items that affect
      the marketability of the property, with the estimated cost and the estimated
      contributory value of each item. The total contributory value of all repairs
      listed should be considered by the appraiser when making condition adjustments
      on the market data grid since liquidation appraisals are completed “as is”.
      VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 11-31'
  judgment: false
