Securities and Exchange Commission v. Nadel et al

Filing 1311

DECLARATION of Burton W. Wiand re 1310 Verified MOTION for miscellaneous relief, specifically to Enforce Constructive Trust through Turnover of Real Property, or in the Alternative, through Foreclosure of the Receiver's Equitable Lien by Burton W. Wiand. (Attachments: # 1 Exhibit A - Doc 29 Order granting partial motion for summary judgment, # 2 Exhibit B - Final Judgment, # 3 Exhibit C - BK Case Doc 39 Order Granting Motion to Confirm Termination or Absence of Stay or Alternatively Relief From the Automatic Stay, # 4 Exhibit D - AQ Doc 115 Motion to transfer, # 5 Exhibit E - AQ Doc 182 ORDER granting 115 Motion to transfer; granting 117 Motion to transfer, # 6 Exhibit F - AQ Doc 184 Turnover Order, # 7 Exhibit G - 1 (pages 1-25) - AQ Doc 258 MOTION for confirmation of sale of Realty - with exhibits, # 8 Exhibit G - 2 (pages 25-50) - AQ Doc 258 MOTION for confirmation of sale of Realty - with exhibits-2, # 9 Exhibit G - 3 (pages 51-101) - AQ Doc 258 MOTION for confirmation of sale of Realty - with exhibits-2, # 10 Exhibit H - AQ Doc 263 FINAL JUDGMENT CONFIRMING RECEIVER'S SALE OF REALTY, # 11 Exhibit I - Hudgins Doc 264 Order Approving Sale of Real Propert)(Lamont, Michael)

IFile 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 8 of No.1 01301 Page #81 2682

Uniform Residential Appraisal Report

File# 10130

This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit;
including a unit in a planned unit development (PUO). This report form is not designed to report an appraisal of a
manufactured home or a unit in a condominium or cooperative project.
This appraisal report is subject to the following scope of work. intended use. intended user, definition of market value,
statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended
use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may
expand the scope of work to include any additional research or analysis necessary based on the complexity of 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 of work for this appraisal is defined by the complexity of this appraisal assignment and the
reporting requirements of this appraisal report form, including the following definition of market value, statement of
assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual
inspection of the interior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of 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 of this appraisal report is for the lender/client to evaluate the property that is the
subject of this appraisal for a mortgage finance transaction.

INTENDED USER: The intended user of 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 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 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 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.
• 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 of 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 offered 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 of the financing or concession but the dollar amount of 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 of a legal nature that affect either the property being appraised or the title
to it, except for information that he or she became aware of 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 of the improvements.
The sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination
of 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 of 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 of 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 of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or
she became aware of during the research involved in performing the appraisal. Unless otherwise stated in this appraisal
report. the appraiser has 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 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 of environmental hazards, this appraisal report must not be considered as
an environmental assessment of 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 of the sub,ect property will
be performed in a professional manner.

Freddie Mac Form 70 March 2005

Page 4 of 6
Form 1004

'TOTAL for Windows' appraisal software by a la mode. inc.

Fannie Mae Form 1004 March 2005
1·800·ALAMODE

IFile 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 9 of No 101301 Page #91 2683

Uniform Residential Appraisal Report

File# 10130

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 of work requirements stated in
this appraisal report.
2. I performed a complete visual inspection of the interior and exterior areas of the subject property. I reported the condition
of the improvements in factual. specific terms. I identified and reported the physical deficiencies that could affect the
livability. soundness, or structural integrity of the property.

3. I performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal
Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in
place at the time this appraisal report was prepared.
4. I developed my opinion of the market value of the real property that is the subject of 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 offering for
sale of the subject property in the twelve months prior to the effective date of this appraisal. and the prior sales of the subject
property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report.
6. I researched, verified, analyzed. and reported on the prior sales of the comparable sales for a minimum of one year prior
to the date of sale of 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 of combining a land sale with the contract purchase price of 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.
10. 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 of the subject property.

11. I have knowledge and experience in appraising this type of property In this market area.
12. I am aware of, 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 fumished 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 of the subject property to adverse influences in the development of my opinion of market value. I
have noted in this appraisal report any adverse conditions (such as, but not limited to, needed repairs, deterioration, the
presence of hazardous wastes, toxic substances, adverse environmental conditions. etc.) observed during the inspection of the
subject property or that I became aware of during the research Involved In performing this appraisal. I have considered these
adverse conditions in my analysiS of the property value. and have reported on the effect of the conditions on the value and
marketability of the subject property.
15. I have not knowingly withheld any Significant information from this appraisal report and. to the best of 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 professional 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 of 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 andlor opinion of market value in this appraisal report on the race. color. religion. sex. age, marital
status, handicap. familial status. or national origin of either the prospective owners or occupants of the subject property or of the
present owners or occupants of the properties in the vicinity of the subject property or on any other basis prohibited by law.
18. My employment andlor 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 of
any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of 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 of this appraisal
or the preparation of 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.
20. 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 70 March 2005

Page 5 of 6
Form 1004 - 'TOTAL for Windows' appraisal software by ala mode, Inc.

Fannie Mae Form 1004 March 2005
1·800·ALAMODE

Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 10IFile No 18 PageID 2684
of 101301 Page #101

Uniform Residential A

File# 10130

21. The lender/client may disclose or distribute thrs appraisal report -o: the borrower; another lender at the request of the
t
borrower; the mortgagee or Its successors and assigns; mortgage insurers; government sponsored enterprises; other
secondary market participants; data collection or reporting services; professional appraisal organizations; any department.
agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions; without having to
obtain the appraiser's or supervisory appralser'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).
22. I am aware that any disclosure or distribution of 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 of the Uniform Standards of Professional Appraisal Practice
that pertain to disclosure or distribution by me.

23. The borrower, another lender at the request of 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
of any mortgage finance transaction that involves anyone or more of these parties.
24. If this appraisal report was transmitted as an ~electronlc 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 of this
appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and
valid as If a paper version of this appraisal report were delivered containing my original hand written signature.
N

25. Any intentional or negligent misrepresentatlon(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 of Title 16, United States
Code, Section 1001. 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 of 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 Ihis appraisal report Is either a sub-contractor or an employee of the supervisory appraiser (or the
appraisal firm). is QualifIed to perform this appraisal, and is acceptable 10 perform this appraisal under the applicable state law.
4. This appraisal report complies with the Uniform Standards of Professional Appraisal Practice that were adopted and
promulgated by the Appraisal Standards Board of 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 of Ihis
appraisal report containing a copy or representation of my Signature, the appraisal report shall be as effective, enforceable and
valid as If a paper version of this appraisal report were delivered containing my original hand written signature.

SUPERVISORY APPRAISER (ONLY IF REQUIRED)

Slgnatu~II~~=i=li~~~~~~===

Name
Compa
Compa .... 'a.lll-;• .
BRASST

ISAL SERVICES

[e-mail]

Date of Signature and Report ~Ju:::.Iy 2::.:7"''..:.
... " 20=_1:...::0'_____________
Effective Date of Appraisal -=0..:..:71=23::../:..:20~1..=.0 _ _ _ _ _ _ _ __
State Certification # .:..,; 04:....:...-_ _ _ _ _ _ _ _ _ __
A4:..:..7"-'
or State License #
or Other (describe) ________ State # _ _ _ __
State ""' C_____________________
N""'
Expiration Date of Certification or License ....:;,06='=30:;.;.,;/2::;,;:0:....;,1...;".1_ __
ADDRESS OF PROPERTY APPRAISED
165 KNOLL TOP RD
ROBBINSVILLE , NC 28771
APPRAISED VALUE OF SUBJECT PROPERTY S 158000
LENDER/CliENT
Name
Company Name SHuns & BOWEN lLP
Company Address 3000 SOUTH ORANGE AVENUE, STE 1000,
ORLANDS FL 32601
Email Address

Freddie Mac Form 70 March 2005

Signature
Name _____________________________________
Company Name
Company Address
Telephone Number
Email Address
Date of Signature
State Certification #
or State License #
State _________________________________
Expiration Date of Certification or License
SUBJECT PROPERTY

o Did not inspect subject property
rJ Did inspect exterior of subject property from street
Date of Inspection
Old inspect interior and exterior of subject property
Date of Inspection
COMPARABLE SALES

o

n

Did not inspect exterior of comparable sales from street
Did inspect exterior of comparable sales from street
Date of Inspection

Page 6 of 6
Form 1004

"TOTAL for Windows' appraisal software by a la mode. Inc

Fannie Mae Form 1004 March 2005
1-800-AlAMOOE

Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 11IFile No.1 01301 Page # 111 2685
of 18 PageID
Supplemental Addendum

Borrower/Client NA
Prooertv Address 165 KNOLL TOP RD
Cilv ROBBINSVILLE
Lender SHuns & BOWEN LLP

Countv GRAHAM

File No

State NC

10130

lin Code 28771

THE SUBJECT IS RATED AN AVERAGE TO GOOD QUALITY HOME THAT IS LOCATED IN GRAHAM COUNTY. THE
HOME IS LOCATED IN STECOAH VIEWS SUBDIVISION.
THE LOT THE HOME IS SITUATED ON IS A VERY STEEP SLOPE AND BOUNDS THE PAVED SUBDIVISION ROAD IN
THE BACK OF THE HOME. THE CUT ABOVE THE HOME IS ERODING WITH EARTH I MOVING DOWN THE SLOPE AND
RESTING AGAINST THE FOUNDATION WALL OF THE HOME. THE CUT BELOW THE HOME IS ALSO ERODING. THE
CONCRETE PATIO SLAB ON THE FRONT OF THE HOME IS BEGINNING TO MOVE AWAY FROM THE HOME.
THE HOME IS IDENTIFIED AS A TWO STORY STRUCTURE BY THE LISTING REAL ESTATE OFFICE AS WELL AS IN
AN ENGINEERING REPORT RECEIVED THAT SHOWED AN INSPECTION OF THE PROPERTY ON MAY 19, 2009. THE
HOME IS DESIGNED WITH THE MAIN LIVING AREA ON THE SECOND LEVEL. THIS FLOOR PLAN IS TYPICAL OF
HOMES WITH FINISHED BASEMENTS. FOR THE PURPOSES OF THIS APPRAISAL, THE HOME WILL BE IDENTIFIED AS
A ONE STORY HOME WITH A FINISHED BASEMENT.
THE ENGINEERING REPORT FURNISHED INDICATES A POSSIBLE SOLUTION AS SOIL NAILING. IN THE APPRAISER'S
OPINION, THIS WOULD NOT SOLVE THE ENTIRE PROBLEM.
ON THE DATE OF MY PERSONAL INSPECTION, DAVID C. ANDERSON, A LICENSED GENERAL CONTRACTOR, AS
WELL AS STATE-CERTIFIED APPRAISER VISITED THE PROPERTY AS WELL. THE FOLLOWING METHODS OF
CORRECTING THE PROBLEM WERE DETERMINED TO BE THE MOST EFFECTIVE WAY OF SOLVING THE PROBLEM.
THE SUPPORT COLUMNS THAT ARE CURRENTLY SUPPORTING THE DECK MUST BE REMOVED AFTER TEMPORARY
SUPPORT FOR THE DECK IS ERECTED. THE PATIO MUST BE REMOVED AND A FOUNDATINON WALL POURED ON A
FOOTING IN THE FRONT OF THE HOME. THIS FOOTING AND WALL MUST BE CONSTRUCTED ON SOLID EARTH. THE
AREA IN FRONT OF THE HOME MUST BE HAND DUG FOR THE FOOTING AND WALL. THE SUPPORT COLUMNS FOR
THE DECK WOULD THEN BE REPLACED AND REST ON TOP OF THE NEW WALL. THE DECK WILL BE
CANTELEVERED BEYOND THE SUPPORT COLUMNS. THE RETAINING WALL WOULD BE 75 FEET LONG TO
ENCOMPASS AN AREA BEYOND THE FOOT PRINT OF THE HOME.
IN THE REAR OF THE HOME, ANOTHER RETAINING WALL 75 FEET IN LENGTH MUST BE ERECTED. THIS WALL
SHOULD BE A MINIMUM OF 8' ABOVE THE GROUND, AND APPROXIMATELY 5' FROM THE HOME. THE AREA BEHIND
THE WALL WOULD THEN BE BACKFILLED. THIS WOULD CREATE A CUT FROM THE ROAD TO THE WALL OF A MUCH
LESSER ANGLE, THEREBY ALLOWING SEEDING AND STABILIZING THE SOIL TO BE MORE EFFECTIVE. DUE TO THE
NEAR VERTICAL SLOPE, THE ANGLE MUST BE REDUCED AND MADE STABLE TO PREVENT THE PAVED
SUBDIVISION ROAD FROM FAILING.
BOTH WALLS WOULD REQUIRE THE PROPER DRAINAGE INSTALLED AS WELL.
BASED ON RESEARCH OF COST SOURCES, THE WORK LISTED ABOVE WOULD COST APPROXIMATELY $85,000.
THIS WOULD BE THE BASIS FOR THE COST TO CURE THE PROBLEMS FOR THE SITE. THIS FIGURE IS USED AS AN
ADJUSTMENT WHEN COMPARING THE HOME TO COMPARABLE SALES OF PROPERTIES WITHOUT SITE ISSUES. IT
SHOULD BE NOTED THAT THIS APPRAISAL REPORT REQUIRED DELIVERY TO THE CLIENT IN A SHORT PERIOD OF
TIME. THE ANALYSIS OF THE SITE AND CONCLUSIONS FOR REPAIR OF THE SITE PRODUCED THE COST TO CURE.
ANY STIGMA THE PROPERTY HAS ACQUIRED BECAUSE OF THE SITE PROBLEMS COULD ALSO HAVE AN AFFECT
ON CURRENT MARKET VALUE.

Form TADD

'TOTAL for Windows' appraisal softt'lare by a la mode. Inc

1·800·ALAMODE

Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 12IFile No 18 PageID 2686
of 101301 Page #121
Subject Photo Page
Borrower/Client NA
Prooertv Address 165 KNOLL TOP RO
City ROBBINSVILLE
Lender SHUnS & BOWEN LLP

County GRAHAM

State NC

lio Code 28771

Subject Front
165 KNOLL TOP RD
Sales Price
140,000
Gross Living Area
1,408
Total Rooms
6

Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age

3
2
AVERAGE
GOOD/MTN
1.52AC+IAVG/GD
5A5E

Subject Rear

Subject Street

Form PICPIXSR - 'TOTAL for Windows' appraisal software by a la mode, inc. - 1-800-ALAMODE

Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 13IFile No18 PageID 2687
of 101301 Page #13/
PHOTOGRAPH ADDENDUM
NA
Borrower/C6ent
165 KNOLL TOP RD
ProoertY Address
ROBBINSVILLE
City

Lender

County GRAHAM

Slale

lio Code

NC

SHUlTS & BOWEN LLP

CUT BEHIND HOUSE

CUT BEHIND HOUSE

PATIO AT FRONT OF HOME

Form GPICPlX - 'TOTAllor Windows' appraisal software by a la mode. inc

1-8QQ-AlAMODE

28771

Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 14IFile NQ 18 PageID 2688
of 101301 Page #141
PHOTOGRAPH ADDENDUM
NA
BQrrQwer/Client
165 KNOLL TOP RD
Prooertv Address
ROBBINSVILLE
City
SHUTTS & BOWEN LLP
Lender

County GRAHAM

State

NC

lio Code

28771

CRACK IN PATIO IN FRONT OF HOME

DRIVEWAY CAVING IN NEAR WELL
THIS WAS A RESULT OF THE PIPES
FREEZING AND BURSTING AND THE
GROUND ERODING AROUND THE WELL.

Form GPICPIX - "TOTAL for Windows· appraisal software by a la mode. inc.

1·800·ALAMODE

Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 15IFile No18 PageID 2689
of 101301 page #151
Comparable Photo Page
Borrower/Client NA
ProDertv Address 165 KNOLL TOP RD
Citv ROBBINSVILLE
Lender SHUTTS & BOWEN LLP

Countv GRAHAM

State NC

l ie Code 28771

Comparable 1
80 CRABAPPLE LN
ProX. to Subject
2401 miles
Sale Price
249,500
Gross Living Area 1,404
Total Rooms
5
Total Bedrooms
2
Total Bathrooms
2
Location
GOOD
View
GOOD/MTN
Site
0.74AC+/Quality
AVG/GD
Age
6A3E

Comparable 2
195 HOLLY BERRY BRANCH
Prox. to Subject
24.36 miles
Sale Price
235,000
Gross Living Area 1,232
Total Rooms
4

Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age

1
1.5
GOOD
GOOD/MTN
1.08AC+/AVG/GD
5A3E

Comparable 3
450 BEACON HILL
Prox. to Subject
26.88 miles
Sale Price
259,000
Gross Living Area 1,584
Total Rooms
5
Total Bedrooms
2
Total Bathrooms
2
Location
GOOD
View
GOOD/MTN
S
ite
11 2AC+/Quality
AVG/GD
A
ge
3A 2E

Form PfCPIX.CR - 'TOTAL for Windows' appraisal software by a la mode. inC. - 1·800·AlAMODE

Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 16IFile No 18 PageID 2690
of 101301 Page #161
Location Map
Borrower/Client NA
Property Address 165 KNOLL TOP RD
City ROBBINSVILLE
Lender SHUnS & BOWEN LLP

I

County GRAHAM

Zip Code 28771

Slate NC

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Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 18IFile No 18 PageID 2692
of 101301 Page #181

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indows' appraisal software by a la mode, inc, - 1-800-ALAMODE

Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 Page 1 of 18 PageID 2693
Client
Property Address
City
Appraiser

Shutts & Bowen LLP
165 Knoll Too Rd.
Robbinsville
Jonathan Smith

File No. G-07-436-2010
State NC

County Graham

Zip Code 28771

TABLE OF CONTENTS

Lener of Transmittal .............................................................................................................. .......................................................................................... .
USPAP Identification ............................................................................................... .................................... ,....................
,....,........................
GP Residential ., .... ,", ....... ,", ......... ,.. ,.. ,.,.................... ,.................................................. ...............,., ......................................................... ,....... '........ ,
General Text Addendum .......................................................................................... ........ .................. ,........................................... ............................. ,....
Subject Photos ................................. ,.............. ,.... ,"" ........ ,..................... ,.................. ,... ,........... .... ,"' .......... ,...................................................................
Subject Photos Interior ......................................................................................................................................................................... ,.... ........................
Subject Photos .................................................................................. ....................... ........................................... .............. ............................ .......... ......
Comparable Photos 1·3 ....................................................................................................................................................................................................
Building Sketch (Page· 1) ........... ......................................................... .............. .................................................... ...........................................................
Building Sketch (Page· 2) ...... ..... ............................ ................... .............. ........... ......................................... ......... .......... ..... ........ ...... ..... ......... .................
Location Map ...... ..... .... ..... ............. ...... ..... ...... ................ ............ ........ ......... ..... ......... ......... .................. ........... .......... ..... ......... ............................ .............
Deed Book # 281 Pg. # 179 ................................................................................................................................................................................. ,..........
Deed Book # 281 Pg. # 180 .................................................................................... ........................................................................................................
Deed Book # 281 Pg. # 181 ......................................................................................................................................................................................
Deed Book # 261 Pg. # 182 ............................................................................................................................................................................................
Invoice ................................................................................................................................................................................................................... ,.........

2

3
6

7
8
9
10
11
12

13
14
15
16
17
18

EXHIBIT

I
Form TOCP - 'WinTOTAL' appraisal software by a la mode,

Inc. -

'·800·ALAMOOE

COMPOSITE
"B" (cont.)

IMain Fjle No G-OZ-436-20101 Page #11
Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 Page 2 of 18 PageID 2694

client I Shutts & Bowen. LLP
PO Box 4956 Orlando. FL 32802

Re: Property:
Borrower:
File No.:

165 Knoll Top Rd.
Robbinsville. NC 28771
nla
G-07-436-2010

In accordance with your request. I have appraised the above referenced property. The report of that appraisal is
attached.
The purpose of this appraisal is to estimate the market value of the property described in this appraisal report. as
improved. in unencumbered fee simple title of ownership.
This report is based on a physical analysis of the site and improvements. a locational analysis of the neighborhood and
city. and an economic analysis of the market for properties such as the subject. The appraisal was developed and the
report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice.
The value conclusions reported are as of the effective date stated in the body of the report and contingent upon the
certification and limiting conditions attached.
It has been a pleasure to assist you. Please do not hesitate to contact me if i can be of additional service to you.

s;nc.""Y'~

Jonathan Smith

[Main File No. G-07 436-20101 Page #21
Case 6:07-cv-00608-ACC-DAB Document 258-3(828)Filed 08/11/10 Page 3 of 18 PageID 2695
ABC Realty Services
419-4979
Client
Property Address
CityAppraiser

File No. G-07 -436-2010

Shutts & Bowen LLP
165 Knoll Top Rd.
RobbInsville
Jonathan Smith

County Graham

State NC

Zip Code 28771

APPRAISAL AND REPORT IDENTIFICATION
This Appraisal Report Is one of the following types:

rJ

Self ContaIned

o Summary
o Restricted Use

(A written report prepared under Standards Rule 2-2(a) ,persuant to the Scope of Work, as disclosed elsewhere in this report.)
(A written report prepared under Standards Rule 2-2(b) ,persuant to the Scope of Work, as disclosed elsewhere in this report.)
(A written report prepared under Standards Rule 2-2(c), persuant to the Scope of Work, as disclosed elsewhere in this report,
restricted to the stated intended use by the specified client or intended usee)

Comments on Standards Rule 2-3
I certify that, to the best of my knowledge and beNel:
-the statements of fact contained in this report are true and correct.
- the reported ana~ses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
-I have no (or the specified) present or prospective interest in the property that is the subject of this report and no (or the specified) personal interest with respect to the parties
involved.
- I have no bias with respect to the 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 developing or reporting predetermined resuns.
- 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 aHainment of a stipulated res un, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
- my analyses, opinions, and conclusions were developed, and this report has been prepared. in conformity with the Uniform Standards of Professional Appraisal Practice.
- I have (or have not) made a personal inspection of the property that is the subject of this report. Of more than one person signs this certification, the certification must clearly
specify whic h individuals did and which individuals did not make a personal inspection of the appraised property.)
- no one provided significant real property appraisal assistance to the person signing this certification. (H there are exceptions. the name of each individual providing significant
real property appraisal assistance must be stated.)

Comments on Appraisal and Report Identification
Note any USPAP related Issues requiring disclosure and any state mandated requirements:
SCOPE OF WORK:

This appraisal assignment requires the development and reporting of an opinion of current market value of the subject property which is
identified as 165 Knoll Top Rd. Robbinsville NC beino further identified as Graham County tax parcel # 6602.00-00-5040B3. A search of the
very limited local real estate market for recent sales of similar properties is to be completed and the appropriate adjustments made to the
sales prices of those comparable sales in order to arrive at a credible reflection of subiect value. All conditions issues or features which would
impact market value are to be considered and properly weiohted in determinino value.
The cost approach to value is considered but is not aiven areat consideration as it shown to have diminished weiaht to value especiallY in the
current market conditions. The income approach is not considered as the subiect is not an income producina property.

APPRAISER:

Signature
Name Jonathan Smith
Date Signed: 07/30/2010
State Certificabon #
or State License # A5926
State N<::
. Date of Certlflcalion
EIfoctrve Date of Appraisal

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07/2212010

SUPERVISORY APPRAISER (only If required):

Signature
Name
Date Signed:
State Certification #:
or State License #
State:
Date of CertIfication or License:
SUperviSory Appraiser Inspection of Subject
l_~ Old Not
lJ Exterior-only from slreet

Form 1006 - 'Win TOTAL' appraisal software by a la mode, inC

'·800-ALAMODE

LJ

InterIOr and Extenor

IMajn File 4 of 18 PageID
ABC Realty Services [phone]
Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 Page No. G-07-436-20101 Page #31 2696
G-07-436-2010
RESIDENTIAL APPRAISAL SUMMARY REPORT
File-No.: G-07-436-2010
Property Address: 165 Knoll Top Rd.
.... County: Graham
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City: Robbinsville
State: NC
Zip Code: 28771
Legal DeSCription: see deed
Assessor's Parcel #: 6602.00-00-5040B3
Tax Year: 2010
R.E. Taxes: $ 1 062.56
Special Assessments: $ nla
Borrower (if applicable: nla
Current Owner of Record:
MWH Investments LLC
Occupant: [ ] Owner
[ ] Tenant
L><:! Vacant
] Manufactured Housing
Project Type:
[ ] PUD [J Condominium [ Cooperative I2<J Other (describe) Residential Development HOA: $ $100
L><:! per year [J per month
Market Area Name: Stecoah Township
Map Reference: 6602.00
Census Tract: 980100
The purpose of this appraisal is to develop an opinion of: ~ Market Value as defined). or L J other type of value (describe)
This report reflects the following value (if not Current. see comments):
L><:! Current (the Inspection Date is the Effective Date)
[ ] Retrospective
[ ] Prospective
Approaches developed for this appraisal: I2<J Sales Comparison Approach I2<J Cost Approach [J Income Approach (See Reconciliation Comments and Scope of Work)
Property Rights Appraised: L><:! Fee Simple [J Leasehold [ ] Leased Fee [J Other (describe)
Intended Use: This report is for the exclusive use of the named client to show current market value.

~ Intended User(s} (by name or type):

Client
Client:
Shutts & Bowen LLP
Address: 300 South Orange Avenue Suite 1000 Orlando FL 32801
Appraiser: Jonathan Smith
Address: P.O. Box 627 Robbinsville, NC 28771
Location:
Urban
Suburban ~ Rural
Predominant
One-Unit Housing
Present Land Use
Change in Land Use
Buitt up:
0 Over 75% (gJ 25-75% 0 Under 25%
Occupancy
PRICE
AGE
One-Unit
22 % (gJ Not Likely
Growth rate:
0 Rapid
0 Stable
(gJ Slow
(gJ Owner 98
$(000)
(yrs) 2-4 Unit
1 % 0 Likely • 0 In Process •
Property values: 0 Increasing 0 Stable
I2<J Declining
0 Tenant 2
45
Low new MuHi-Unit
0 % • To: - - - - - - - 1
Demand/supply: 0 Shortage
0 In Balance ~ Over Supply (gJ Vacant (0-5%) 295 High 85 Comm'l
2%
Marketing time: 0 Under 3 Mos. 0 3-6 Mos. ~ Over 6 Mos. 0 Vacant (>5%)
185 Pred 30
VacvPub
75 %
Market Area Boundaries. Description, and Market Conditions (including support for the above characteristics and trends):
Market activity IS slOWing With limited
movement in both 1st and 2nd home sales. A market time of 6+ months is normal, supply is greater than demand. No special financing or
concessions are needed with mortgage money available to qualified buyers. Sellers are feeling pressure to reduce listing prices. Days on
market have increased.

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1- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1

Dimensions: see plat
Site Area: 1.527 acres
Zoning Classification: -'-'n=-o..:::zo;::.:n..:.:;in..:.;;gL-.._ _ _ _ _ _ _-::--:--::---::-_ _=-:--~ Description: -,-,n.=..o-=z:::::;onc:.;i:..:.;nga..--::--:--:-_=--:---:---:=:;-:-:---:-_I
Zoning Compliance: [ Legal 0 Legal nonconforming (grandfathered)
] Illegal r8J No zoning
Are CC&Rs applicable? 0 Yes 0 No r8J Unknown
Have the documents been reviewed? 0 Yes r8J No Ground Rent (if applicable $
/
Highest & Best Use as improved: (gJ Present use, or 0 Other use (explain) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Actual Use as of Effective Date:
Z Summary of Highest &Best Use:

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~

Single Family Residential
Use as appraised in this report: ..::S:.:..F.:..;R'--_ _ _ _ _ _ _ _ _ _ _-i
Subject is located on a residential site, and highest and best use would be a single family residential use.

l ----------------------------------------------------------------------------------------- I

Off-site Improvements

Type
Public Private Topography slopina to steep
Street
. =a:: . sP::.:.h:=ao,:.lt_________ []
(gJ Size
1.527 acres
Q Gas
0 ~ propane/typical
Curb/Gutter -,-,n:::.;on~e,--________ ~
0 Shape
triangle
~ Water
0 ~ private well/ typical Sidewalk ..:.;n.=..on:..:.:e"--_______ (gJ 0 Drainage
appears adeauate
Lng Range Mtlvalley
en' Sanitary Sewer 0
~ septic/typical
Street Lights none
~ 00 View
Storm SewerD
!LI,J none
Allev
none
!LI,J
Other site elements: (gJ Inside Lot [ Corner Lot
] Cui de Sac [J Underground Utilities [J Other (describe)
FEMA Spec'l Flood Hazard Area l J Yes .k?$J No FEMA Flood Zone X
FEMA Map # 3700569200J
FEMA Map Date 2118/2009
Site Comments: ..:::s.:::.ee:::...:::att:.:.:a::.:c~h:::.;ed=--_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I
Utilities

IU ElectriCity

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Provider/Description

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General Description
# of Units
_1____ 0 Acc.Unit
# of Stories 1 w/basement
Type (gJ Det. 0 Att. 0
Design (Style) chalet
(gJ Existing 0 Proposed 0 Und.Cons.
Actual Age (Vrs.) 5
Effective Age (Vrs.) 5
Interior Description
Floors
carpetltile!woodlavQ
Walls
drwaVpaneVavg
TrimtROIsh
wd! paint f avg
8ath Floor
tllelavg
Bath Wainscot drywaH iavg
Doors
paneVavg

Exterior Description
Foundation
concrete/avg
Exterior Walls
loa siding / aVQ
Roof Surface
comp shinales /
Gutters & Dwnspts. aluminum/fair
Window Type
wood/insulated/a
Storm/Screens
screens/avg

Foundation
Basement
Slab.,L
yle:=s'--_ _-l Area Sq. Ft.
Crawl Space none
%Anished
Basement yes
Ceiling
Sump Pump [J
WaDs
Dampness ~
Floor
Settlement X
Outside Entry
Infestation none observed
Amenities
Arepiace(s) #
1
Woodstove(s) #
Patio
396 sf
Deck
396 sf
Porch
Fence
Pool

U None Heating FcW rmAir
_ _--....:1......
1:..:.7-=1'JType
HPump
____1;...::0-"i0Fuei
. : .e:.,:;le. : .ct""ri. : .c_ _-t
. : ;d.:. o. ;.;ryw..=,a;.;. .11--t~~-------i
paneVdrywail COOling
tile
Central .:. .:X______--t
yes
Other

Appliances
Attic 0 None
Car Storage
[J None
Refrigerator ~ Stairs
0
Garage # of cars ( 4 Tot.)
Range/Oven t:><J Drop Stair [J
Attach
Disposal
I2<J Scuttle ~
Detach
Dishwasher txJ Doorway r-]
8n. ·In
FarvHood
C Floor [J
Carport
Microwave C< Heated
[.1
Dnveway _3_
Washer/Dryer [J Firnshed l
Surtace
asphalt
Anished area above grade contains'
6 Rooms
3 Bedrooms
2 8ath(s)
1,419 Square Feet of Gross liVing Area Above Grade
Additional features:
Subject interior would be considered typICal In the focal market with upgrade features such hardwood and ceramiC floors,
vaulted ceilinas aranite tops and tiled bathrooms
Describe the condition 01 the property (including phYSical. functional and extemal obsolescence): A visual Inspection of the Intenor of the improvements revealed
ongoing damage which appears to be caused by water IntruSion, from both guttering In disrepair and what appears to be water seepage at the
rear of the basement where the exterior grade IS above grade of finished floor Extenor wood surfaces also show water damage

crulRESIDENTIAL

CopyrlQhtfl:l 20071Jy ala fTlOde. IIlC IhlS form may be reproduced unmodified Wltnout wrilten penmsslOn. however. ala rnode. l11e rnust be dcknOWledgM and cred4ed

Form GPRES2

'Win TOTAL' appraisal software by a la mode inc.

1·800-ALAMOOE

31?OO7

[MaIO File 5 of 18 01 Page #41
Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 Page No G-O? 436-201PageID 2697
G-07-436-2010
RESIDENTIAL APPRAISAL SUMMARY REPORT
File No' G-07436-2010
.
My research [J did l?5J did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal.
deed records
.1 sl Prio! Subject Salerrra~e~__ Analysis of sale/lransfer history and/or any current agreement of sale/ITsling: nla
~ Date:
no prior sales past 36 mo
0:: Pnce:
nla
III Source(s): deed records
2nd Prior Subject Sale/Transfer
Date:
... Price:
Source(s):
LJ The Sales Comparison Approach was not developed for this appraisal.
SALES COMPARISON APPROACH TO VALUE (if developed)
SUBJECT
COMPARABLE SALE # 1
COMPARABLE SALE # 2
COMPARABLE SALE # 3
FEATURE
Address 165 Knoll Top Rd.
290 Trickling Branch Way
1215 Sam Cove Rd.
40 Lucky Leaf Lane
Murphy, NC 28906
Robbinsville, NC 28771
Murphy, NC 28906
Robbinsville NC 28771
Proximity to Subject
28.55 miles SW
2.15 miles W
28.31 miles SW
$
Sale Price
197000
225500
190,000
140000
J$
1$
1$
$
$
Sale Price/GLA
$
98.66 /SQ.ft. $
130.64 /sQ.ft.1
15573/SQ.ft.1
131.03/sq.ft.1
Data Source(s)
inspection
appraiser files
MLS
MLS
Verification Source(s)
deed records
assessor data
assessor data
assessor data
DESCRIPTION
+ (-) SAdjust.
+(-) $ Adjust.
DESCRIPTION
I- (-) $ Adjust.
DESCRIPTION
VALUE ADJUSTMENTS
DESCRIPTION
Sales or Financing
nla
Bank Owned
+9,850 none
none
Concessions
Date of SalelTime
07106/2010
10/16/09
10/20109
10/28/2009
Rights Appraised
Fee Simple
fee simple
fee simple
fee simple
Location
avg
avg
avg
avg
Site
1.527 acres
1.23 acres
+1485 1.52 acres
+35 .77 acres
+3785
View
Lng Range Mtlvalle wooded/ mt
Ig rng mtlvalley
wooded 1 valley
Design (Style)
chalet
chalet
chalet
ranch
Quality of Construction avg
avg
avg
avg
Age
4
+50003
-1000
5
-500 15
Condition
fair
avg
-10000
-10000 abvavg
-15000 avg
Above Grade
Total IBdrms I Baths
Total IBdrmsl Baths
Total IBdrms I Baths
+3500 Total I Bdrmsl Baths
Room Count
-2500 7 I 3 I 2
-1000
6 I 3 I 2
6 I 2 I 3
7 I 3 I 2.5
Gross Living Area
1419sq.ft.
1 508 sq.ft.
1448 sq.ft.
1 450 sq.ft.
-4895
-1595
-1 705
Basement & Rnished
1,172 Sq.Ft.
1,008 Sq. Ft.
+6,888 1024 Sq. Ft.
+6,216 1,008 Sq. Ft.
+6,888
Rooms Below Grade
100%
100%
+5040
100%
0%
Functional Utility
avg
avg
avg
avg
Heating/Cooling
HPump/cent
HPump/cent
HPump/cent
HPump/Cent
% Energy Efficient Hems
typical
typical
Ityoical
typical
~ Garage/Carport
Gar/SQIIBltin
none
+2500
+2500 Obl/OetlCpt
none
~ Porc/VPatio/Deck
deck/patio
deck/patio
porch/deck
deck 1 patio
no
-55000 no
~ adverse s~e/ conditions ves 1 see att.
-55000 no
-55000
~. Data Source(s):

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8 Adjusted Sale Price
(/) of Comparables

[J+

~ Summary of Sales Comparison Approach

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1$

-48672

1$
See attached addenda.

[]+

148,328

~ -

1$

-60344

[J + ~ - 1$

-50492

Is

165,156

/$

139508

(/)

......

Indicated Value by Sales Comparison Approach S

~RESIDENTIAL

151,500

cuPvrll,lN'" (007 by • la mOde.

Form GPRES2

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H.IS lorm may be reproauced unr100rlied I'IIlhoul ,,'llIen perr"ISSlOn, j'owever, a fa moue, illC n'us! lie a<.knowledged

"Win TOTAL' appraisal software by a la mode. Inc

1800·ALAMODE

dna crea'ed

12007

IMaln File 6 of 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 Page No G·07-436-20101 Page #51 2698
G-07 -436-2010
RESIDENTIAL APPRAISAL SUMMARY REPORT
File No' G-07-436-2010
..
L J The Cost Approach was not developed for this appraisal.
COST APPROACH TO VALUE (if developed)
Provide adequate information for repHcation of lhe foHowing cost figures and calculations.
Support for the opinion of site value (summary of comparable land sales or other methods for estimating site value):
current listings and the most recent vacant lot sales within the extended local market.

Site value is determined

b~ anal~ing

OPINION OF SITE VALUE.
ESTIMATED LJ REPRODUCTION OR [><J REPLACEMENT COST NEW
DWELLING
1,419 Sq.Ft. @$
Source of cost data: National Cost Datal Local Contractors
92.78 ......
1 172 SQ.Ft. @$
o Quality rating from cost service: avo
Effective date of cost data: 09/01/09
48.92
Comments on Cost Approach (gross living area calculations, depreciation, etc.):
Sq.Ft.@$
Sq.Ft.@$
......
~ National cost data used as cost estimate source, being heavil~ weighted
Sq.Ft.@$
....
t; b~ local buildiQ9 costs as Qrovided b:r: local contractors. Site value is
.... -based on coun!y tax office vacant l2arcel sales rel20rt and current
Garage/Carport
247 Sq.Ft. @ $
18.40. .
listings. Ph:r:sical del2reciation is calculated b:r: the age/life technigue.
Total Estimate of Cost-New
Less
Physical
IFunctional IExternal
Depreciation
161211
I
Depreciated Cost of Improvements
--.
"As-is" Value of Site Improvements ..... ........ ........ ..- .......... ...
%

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Estimated Remaining Economic Life (if required):
55 Years INDICATED VALUE BY COST APPROACH
INCOME APPROACH TO VALUE (if developed
~ The Income Approach was not developed for this appraisal.
=$
Estimated Monthly Market Rent $
X Gross Rent Multiplier
Summary of Income Approach (including support for market rent and GRM):

%

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=$
=$
=$
=$
=$
=$
=$
=$
=$

24500
131655
57334

4545
193534

=$(
=$
=$
=$
=$

16121
177413
15000

=$

216,913

Indicated Value by Income Approach

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PROJECT INFORMATION FOR PUDs (if applicable)
Legal Name of Project:
Describe common elements and recreational facilities:

L J The Subject is part of a Planned Unit Development.

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,
Indicated Value by: Sales Comparison Approach $ 151 500
Cost Approach (if developed) $ 216 913
Income Approach (if developed) $
Final Reconciliation The sales coml2arison al2l2roach to value is considered to be the most accurate measure of value in the subject market. Sale
#2 is most heavi!y weighted in the value conclusion of this rel20rt as it reguired the smaller gross adjustment.
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This appraisal is made t:8J "as is", 0 subject to completion per plans and specifications on the basis of a Hypothetical Condition that the improvements have been
0 subject to the following repairs or aHerations on the basis of a Hypothetical Condition that the repairs or aHerations have been completed, 0 subject to
the foHowing required inspection based on the Extraordinary Assumption that the condition or deficiency does not require aHeration or repair:

Bcompleted,
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] This report is also subject to other Hypothetical Conditions and/or Extraordinary Assumptions as specified in the attached addenda.
Based on the degree of inspection of the subject property, as indicated below, defined Scope of Work, Statement of Assumptions and limiting Conditions,
and Appraiser's Certifications. my (our) Opinion of the Market Value (or other specified value type). as defined herein. of the real property that Is lhe subject
of this report Is: $
151,500
,as of:
07/2212010
,which is the effective date of this appraisal.
If indicated above, this Opinion of Value Is subject to Hypothetical Conditions and/or Extraordinary Assumptions included in this report. See attached addenda.
~ A frue and complete copy of this report contains ---1JL pages, including exhibits which are considered an integral part of the report. This appraisal report may not be
w properly understood without reference to the information contained in the complete report.
Attached Exhibits:
r;;<J Photograph Addenda
t:8J
~ Limiting CondJCertifica!ions ~ Narrative Addendum
r<J Sketch Addendum
~ rgJ Scope of Work
Map Addenda
rgJ Cost Addendum
[J Flood Addendum
Additional Sales
Manut. House Addendum
C]
Hypothetical Conditions
Extraordinarv Assumotions
0
0
Client Contact: Michael L. Gore
Client Name:
Shutts & Bowen, LLP
Address: 300 South Orange Avenue SUite 1000 Orlando FL 32801
E-Mail: mgore@shuttscom

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APPRAISER

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Appraiser Name: Jonathan Smith
:r J,. .t' ~
Company ABC Realty Services
~E~~~/
Fax: (8
Phone: [phone]
9
E-Mail: [e-mail]
Date of Report (Signature): v JVt&.
License or Certlficalion #. A5926
State~
Designdbon
licensed
.of Llc;
Expiration
ur lo 8fllllC illiun
6/30/2011
rgJ Intenor & Exterior
[J Extenor Only [J None
Inspection of Sublect
Date of Inspection
07/22/2010

rru1 RESIDENTIAL

SUPERVISORY APPRAISER (if required)
or CO-APPRAISER (If applicable)

SUperviSory or
Co-Appraiser Name
Company:
Phone:
Fax:
E·Mail:
Date of Report (Signature)
License or CertlflCtltion #
DeSignation
Explralion Date of License or Certification
Inspection of SublOCt
Interior & Exterior
Date of Inspecnon

State

r1 Extenor Only

[] None

CopyrlghtfC ,OO71Jy ala fll()de.lnc ThIS form may De ,eproauced unfll()dl1ted M1 huull'mnen pennrsslOn however, a Ia '"Ode.If1C must De acknowledged ar.d uedRed

Form GPRES2 -- 'Win TOTAL' appraisal software by a la mode. inc

'·800·ALAMODE

3/2007

IMain File 7 of 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 Page No. G-OZ-436-20101 Page #61 2699

General Text Addendum
Client
Shutts & Bowen LLP
Property Address 165 Knoll Top Rd.
City
Robbinsville
Appraiser
Jonathan Smith

File No G-OZ-436-2010

State NC

County Graham

Zip Code 28771

Comments To Site Conditions

UPON ACCEPTANCE OF THIS APPRAISAL ASSIGNMENT THE APPRAISER WAS PROVIDED WITH A COpy OF THE
COURT ORDER WHICH PLACES THE SUBJECT PROPERTY IN RECEIVERSHIP AS WELL AS A COPY OF AN
ENGINEERS REPORT WHICH DETAILS A VISIT TO THE SUBJECT SITE THAT EXPLAINS NOTED ADVERSE ISSUES AND
THE POTENTIAL FOR SLOPE FAILURE A T THE SITE. THE REPORT NOTES SETTLEMENT IN AN EXTERIOR CONCRETE
PATIO. SETTLEMENT IN THE DRIVEWAY PAVEMENT IN THE AREA OF THE PRIVATE WELL. AS WELL AS A CUT SLOPE
WHICH SHOWS SIGNS OF EROSION AT THE REAR OF THE DWELLING.
WHEN ARRIVING A T THE SUBJECT PROPERTY THESE CONDITIONS ARE REA OIL Y IDENTIFIABLE AS THE
INSPECTION PROGRESSES. THE CONCRETE SLAB PA TlO AT THE FRONT OF THE DWELLING IS LOCATED VERY
CLOSE TO THE NEAR VERTICAL SLOPE AND IS PULLING AWA Y FROM THE STRUCTURE AS IT APPEARS TO BE
LOCATED ON FILL. THE ASPHAL T PAVEMENT HAS A RATHER LARGE CRACK WHICH RUNS MOST OF THE LENGTH
OF THE PARKING AREA AND PARALLEL WITH THE SLOPE. THIS CRACK APPEARS TO RUN EXTREMEL Y NEAR THE
PRIVATE WELL AND RAISES THE QUESTION OF THE WELL BEING COMPROMISED AND THE POSSIBLE INFIL TRA TlON
OF GROUND WATER. THE CUT SLOPE AT THE REAR OF THE DWELLING SHOWS SIGNS OF EROSION WITH
SEDIMENT BEING DEPOSITED AGAINST THE REAR EXTERIOR OF THE BUILDING. ALSO, THE WOOD SURFACES ON
THE EXTERIOR OF THE DWELLING SHOW DECA Y WHICH APPEARS TO BE CAUSED BY FAUL TY GUTTERING AND
INADEQUATE DRAINAGE.
AN INSPECTION OF THE INTERIOR OF THE DWELLING REVEALS AN UPSCALE INTERIOR FINISH IN AVERAGE
CONDITION WITH NO DAMAGE NOTED WITH THE EXCEPTION OF STAINING OF THE INTERIOR WALLS FROM WHA T
APPEARS TO BE WATER INFIL TRA TlON DUE TO THE CONDITIONS NOTED ABOVE. THIS CONDITION WAS NOT
EXTENSIVE ON THE DA TE OF INSPECTION BUT WILL NEED TO BE DEAL T WITH RA THER QUICKL Y TO AVOID
FURTHER DAMAGE AND LOSS OF VALUE.
DUE TO THE FACT THA T THERE ARE NO RECENT SALES OF COMPARABLE PROPERTIES WITH ISSUES SIMILAR TO
THE SUBJECT, A DOLLAR AMOUNT ADJUSTMENT CAN NOT BE ACHIEVED THROUGH THE USE OF SALES
COMPARISON. AS SUCH WE ARE FORCED TO USE ACTUAL COST ESTIMA TES TO ARRIVE A T AN ADJUSTMENT
WHICH MIGHT REFLECT UPON SUBJECT VALUE. WITH THE BENEFIT OF INPUT FROM A LOCAL BUILDER AND
GRADING CONTRACTOR AN ESTIMA TED COST TO CURE IS DEVELOPED AND THE ADJUSTMENTS IN THE SALES
COMPARISON GRID ARE BASED ON THAT ESTIMATE. WITH THE UNDERSTANDING THA T THE TYPICAL EDUCA TED
BUYER ACTING IN THEIR OWN BEST INTERESTS WOULD MOST LlKEL Y PURSUE INPUT FROM THOSE IN THE LOCAL
MARKET WITH EXPERTISE IN SLOPE MANAGEMENT TO DEVELOP A COST TO CURE ESTIMA TE IN ORDER TO ARRIVE
AT AN OFFER TO PURCHASE, THE ADJUSTMENTS MADE TO THE COMPARABLE SALES ARE CONSIDERED TO BEST
REFLECT HOW THE LOCAL MARKET WOULD REACT TO THE ADVERSE SITE CONDITIONS.
IT SHOULD BE NOTED THAT THE NUMBERS USED FOR ADJUSTMENT ARE ONL Y ESTIMATES AND SHOULD BE
VIEWED AS SUCH.

• GP Residential: Sales Comparison Approach - Summary of Sales Comparison Approach
The subject property is located near Robbinsville in Graham County, an extremely rural county in Southwestem North Carolina
where approximately 75% of the land area is vacant in the form of National Forest and The Great Smoky Mountain National
Park forms portions of the northem border. Comparable sales in this market are typically few and good comparables may not
exist. The comparables chosen for this report are considered to be the best currently available and to be a good reflection of
subject value when adjustments are made. It is understood that adjustment percentages are considera.ble, however this is
considered more the rule rather than exceptIon in this very limited market. Adjustments are explained as follows:
Closed sale # 1 is given a positive adjustment to reflect a motivated bank owned sale.
All closed sales are adjusted for differing site area.
An comparables are adjusted for differing age based on the market preception that 'newer is better'.
All sales are given negative adjustments to reflect superior condition.
All comparables are adjusted for differing above grade gross living area and/or bedroom/bathroom count.
All sales are adjusted for differing below grade area and finish.
Sales #'s 1 and 3 are adjusted for superior car storage.
All sales are given negative adjustments to reflect likely market reaction to adverse site conditions noted.
General Assumptions
It is assumed that all information received from others regarding subject and comparables to be true and correct. It is also
assumed that subject is structurally sound, in compliance with a/l pertinent codes. and that all systems are functioning properly
and as designed. Should any of these conditions not be met the value conclusion of this report could be adversely affected. The
appraiser performed only a visual inspection of the accessible areas of the property. and this report cannot be relied upon to
disclose any hidden conditions and/or any defects in the property. The appraiser is not an engineer. and is therefore qualified
only to conduct an onsite inspection to a degree sufficient to gain enough information to complete an appraisal report
• URAR. Intended Use / Intended User
The Intended User of this appraisal report is the named client. The Intended Use is to evaluate the property that IS the subject of
th,s appraisal for use by the court appointed receiver, subject to the stated Scope of Work. purpose of the appraisal. reporting
requirements of the appraisal report form. and Definition of Market Value. No additional Intended Users are identified by the
appraiser. In compliance With USPAP this report may not be transferred to another party by the appraiser. USPAP also states
that the only changes which can be made to this report would be to correct errors once It has been submitted to the client.
ADDITIONALL Y IT IS THE EXPRESSED INTENT THA T THIS REPORT NOT BE USED TO DETERMINE INSURABLE
INTEREST AND THOSE WHO CHOOSE TO DO SO A T THEIR OWN RISK!

I certIfy. as the appraiser. that I have complied WIth the Home Va/uatlon Code of Conduct

In

all aspects of the appraIsal process.

torm TAOO - 'WinTQrAL' appraisal software by a la mode, IOC. - 1-80O-ALAMOOE

IMain File No. G-OZ-436-20101 Page #zl
Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 Page 8 of 18 PageID 2700

Subject Photos
Client
Property Address
City
Appraiser

Shutts & Bowen LLP
165 Knoll Top Rd.
Robbinsville
Jonathan Smith

County Graham

Siale NC

Zip Code 28771

Subject Front
165 Knoll Top Rd.
Sales Price
140,000
Gross Living Area
1,419
Total Rooms
6
Total Bedrooms
3
Total Bathrooms
2
Location
avg
View
Lng Range MUvalley
Site
1.527 acres
Quality
avg
Age
5

Subject Rear

Subject Street

Form PICPIXSR - 'Win TOTAL' appraisal software by a la mode. Inc

1-800·ALAMODE

IMain File 9 of 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 Page No G-07436-20101 Page #81 2701

Subject Photos Interior
Client

Shutts & Bowen LLP
Property Address 165 Knoll Top Rd.
Cit}'
Robbinsville
~raiser
Jonathan Smith

County Graham

Slate NC

Z Code 28771
ip

Subject Interior
165 Knoll Top Rd .
Sales Price
140,000
Gross Living Area
1.4 19
Total Rooms
6
Total Bedrooms
Total Bathrooms
2
avg
Location
View
Lng Range MUvalley
Site
1.527 acres
Quality
avg
Age
5

Subject Interior

Subject Interior

Form P
ICPIX.SI - 'W
inTOTAL' appraisal software by a la m
ode. inc

HOO· A
LAMODE

IMain 10 of 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 PageFile No 0-07-436-20101 Page #91 2702

Subject Photo Page
Client
Property Address
Ci!y
Appraiser

Shutts & Bowen LLP
165 KnoH Top Rd.
Robbinsville
Jonathan Smith

County Graham

State NC

Zip Code 28771

Subject Parking / Damage
165 Knoll Top Rd

Sales Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age

140,000
1,419

6
3
2
avg
Lng Range MUvalley
1.527 acres
avg
5

Water" Settlement Damage

Water Damage I Decay

fonn PICPIXSR

"Win TOTAL • appraisal software by a la mode.

IflC-

1-800-ALAMODE

IMajn F No of 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 Pageile11G-Ol -436-20101 Page # 101 2703

Comparable Photos 1-3
Client
ProDertv Address
Cilv
Aooraiser

Shutts & Bowen LLP
165 KnoH Top Rd:
Robbinsville
Jonathan Smith

County Graham

State NC

l io Code 28771

Comparable 1
290 Trickling Branch Way
Prox. to Subjecl
28.55 miles SW
Sales Price
197,000
1,508
Gross Living Area
Tolal Rooms
6
Tolal Bedrooms
2
Total Bathrooms
3

avg
woodedl mt
1.23 acres
avg
4

Location
View
Site
Quality
Age

Comparable 2
1215 Sam Cove Rd.
Prox. to Subject
2.15 miles W
Sales Price
225,500
Gross Living Area
1.448

Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Sile
Quality
Age

7

3
2
avg
wooded I valley
1.52 acres
avg
15

Comparable 3
40 Lucky Leaf Lane
Prox. to Subject
28 .31 miles SW
Sales Price
190,000
Gross Living Area
1.450
7
Total Rooms
Total Bedrooms
3
Total Bathrooms
2.5

Localion
View

S
ite
Quality

Age

Form PICPIXCR - 'W
inTOTAl' appraisal software by a la mode. inC.

-

1-80O-AlAMOD
E

avg
Ig rng m!lvalley
77 acres
avg
3

IMain File No of 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 Page 12G-OZ-436-20101 Page # 111 2704

Building Sketch
Client

Shutts & Bowen LLP

ProperlY Address 165 Knoll TOD Rd.

rCifY

State NC

County Grahani

Rciooinsville
Jonathan Smith

Apllraiser

zrpCOOIl 28771

52. Sit
33. Sit

19ft

Bath

1 Co, Altloc .... ~

(247 Sq"l
Den
Bedroom

FI,.tFIoot'
11418.56 Sq Itl

••••••• t I Fin .......
(1171.56 Sq

Itl

15.51t

==
==
=
~

15.SIt

u.lqAlee
Tot.I u.1et Alee (RottmIed):

1418.6 Sq It
141. Set ft

.......... AIee
COfICrebl Pado
1 Car Attached
Ilasement I FIniShed
Wood Oed

1171.6 Sq It
)<)6 Sq tt

Am FIoof

Sq It
247 Sq tt

)<)6

Form SKT.BIdSkl- "Win TOTAL' appraisal software by a la mode, Inc - 1-800-AlAMODf

19ft
Offic •

1551t
IS.51t

COllcr." Pitta
(396 Sq Itl

WoodOec.
(396Sq Itl

19ft

IMain File No. G-OZ-436-2o101 Page #121
Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 Page 13 of 18 PageID 2705

Building Sketch
Client
Property Address
City
Appraiser

Shutts & Bowen LLP
165 Knoll Top Rd.
Robbinsville
Jonathan Smith

County Graham

Stale NC

Zip Code 28771

Ares C.kulstions Summary
Living Ares

c.kulstlon Details

First Floor

1418.6 Sq It

Total Living Ares (Rounded):
Non-living Ares
Concrete Patio

52.5)( 24
21.5)( 6
0.5)( 21.5)( 2.75

=

=
=

1260
129
29.5625

1419 5q ft
10)( 15.5
155
=
10)( 15.5
155
=
0.5)( 21.5)( 2.75 = 29.5625
21.5 )( 1.25
= 26.875
0.5 )( 10.75 )( 2.75 = 14.78125
0.5 )( 10.75 )( 2.75 = 14.78125

396 Sq It

1 Car Attached

13 )( 19

Basement I Anlshed

396 Sq It

Wood Deck

Form SKT BIdSkl

'WinTOTAL' appraisal software by a la mode, Inc

1-BOO-ALAMODE

247

=
=
=

=

435.5
577.5
129
29.5625

10)( 15.5
10)( 15.5
0.5)( 21.5)( 2.75
21.5 )( 1.25
0.5 )( 10.75)( 2.75
0.5 )( 10.75 )( 2.75

1171.6 Sq It

=

33.5)( 13
52.5)( 11
21.5)( 6
0.5 )( 21.5 )( 2.75

247 Sq It

155
=
155
=
29.5625
=
= 26.875
= 14.78125
= 14.78125

Case 6:07-cv-00608-ACC-DAB Document 258-3 Filed 08/11/10 Page No G-07 -436-20101 Page # 131 2706
IMain File 14 of 18 PageID
Location Map
Client
Property Address
C
ity
Appraiser

Shutts & Bowen LLP
165 Knoll Top Rd.
Robbinsville
Jonathan Smith

County Graham

State NC

Form MAP.LOC - 'Win T
OTAL' appraisal software by a la mode. inc . - 1-80(}'ALAMODE

Zip Code 28771