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HomeMy WebLinkAbout06-22-06 -l 15056051058 REV-1500 EX (06-05) PA Department of Revenue *' Bureau of Individual Taxes PO BOX 280601 Harrisburg, PA 17128-0601 ENTER DECEDENT INFORMATION BELOW ~~~~ ~~c:~~ty N~~~~. .. Date of Death OFFICIAL USE ONLY County Code Year '" -21"'''1 !'" "06 "" i : File Number INHERITANCE TAX RETURN RESIDENT DECEDENT 10153 Date of Birth i 196-16-9300 01/21/2006 08/13/1923 . ..J Decedent's First Name t~LPH""~=~-,,"~~~:~'____ i Decedenfs Last Name SuffIX ,..-.~.__...-..----------".'-- .. . . I RICE . . . . . . '---_._---_._.__..~---~-_._._------' (If Applicable) Enter Surviving Spouse's Information Below Spouse's ~st Na~~__."_.___",,__,,. "_,,,,__. SuffIX Spouse's First Name r"......-.....---...........-... " 1 PATRICIA i RICE L...._.__._ ... _.. ".__._ -. ..-.....-.--. ......-.. .. Spo~se's Social Secu~ty ~umb.~~_.___...~ THIS RETURN MUST BE FILED IN DUPLICATE WITH THE REGISTER OF WILLS i i ; Ii ...N....__ ._...._......_.. j FILL IN APPROPRIATE OVALS BELOW <a:> 1. Original Retum c::> 2. Supplemental Retum c:::> 3. Remainder Retum (date of death prior to 12-13-82) 5. Federal Estate Tax Return Required c::> 4a. Future Interest Compromise (date of death after 12-12-82) c:::> 7. Decedent Maintained a Living Trust (Attach Copy of Trust) c::> 10. Spousal Poverty Credit (date of death c:::> 11. Election to tax under Sec. 9113(A) between 12-31-91 and 1-1-95) (Attach Sch. 0) CORRESPONDENT _ THIS SECTION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFORMATION SHOULD BE DIRECTED TO: _~.~~~...". ._...."._. .. ,,_ "".. .... ..' .... _...... . ..... . ... ....... ....._. ... __. ...... .~~~r:f.1~I~~p~~~~ .~.~r:f.1.b.~ "........ c:::> 4. Limited Estate c:::> ~ 6. Decedent Died Testate (Attach Copy of Will) 9. Litigation Proceeds Received -'L 8. Total Number of Safe Deposit Boxes c:::> i M..f!!l1l.f3!S~"tg,,:r~XR ..flng .1:r.<;!.g~1;'.~ . ".'!';t;,];! lit ..<;:;.9 L !:'.i":1.t>J"a..I!IEl (I!~"p-II~~I~) . . True t Department Agent ._f.,,(),,:J::.pa tr i ci aM. Rice , Executrix RrSt line of address (717) 240-4504 . ."".. .. ......"."." -..'" .. .".,,".......... ~.,.."""".,," jREGISTER ~":5S USE o~ 1 -j l ; . ....J One West High Street ,".) -" Second line of address P.O. Box 220 l......,' . i .... l _""....,,_.,,_......E~TE fILEP_.".--(;~ f'...:; ..~. City or Post Office ["... .-."... ... ..-.,,--...-.......""........ . . 1 Carlisle L....._.._...~H.._.......__........... .m......... State ZIP Code r . IPA 17013 Correspondent's e-mail address: Under penalties of perjury, I declare that I have examined this retum, including accompanying schedules and statements, and to the best of my knowledge and belief, it Is true, correct and complete. Declaration of preparer other than the personal representative is based on all infonnalion of which preparer has any knowledge. SI~~RSO!" RESPONSIBLE F~NG RE1URN DATE 11 "'..I L.,.J --"'/h ,,~ 1/ ADDRESS '0 S-rOWN OAO SIGNATURE OF PREP R OTHER THAN REPRESEN i'\.T1VE R.o,Je~5 ~ t1 ~J t.( DATE c:J~ Itl/~~ ADDRESS PLEASE USE ORIGINAL FORM ONLY Side 1 15056051058 L 15056051058 MI E MI M ---I -l 15056052059 REV-1500 EX Decedent's Name: RECAPITULATION RALPH E RICE 1. Real estate (Schedule A). . . .. . .. . . . .. . .. . . .. . . .. .. .. .. .. .. . . . .. . . . . .. 1. 2. Stocks and Bonds (Schedule B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2. 3. Closely Held Corporation, Partnership or Sole-Proprietorship (Schedule C) . . . .. 3. 4. Mortgages & Notes Receivable (Schedule D) . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4. 5. Cash, Bank Deposits & Miscellaneous Personal Property (Schedule E) ... . . . .. 5. 6. Jointly Owned Property (Schedule F) c:::> Separate Billing Requested . . . . . .. 6. 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G) c:::> Separate Billing Requested.. . . . . .. 7. 8. Total Gross Assets (total Lines 1-7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8. 9. Funeral Expenses & Administrative Costs (Schedule H). . . . . . . . . . . . . . . . . . . .. 9.' 10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I). . . . . . . . . . . . . . . . 10. 11. Total Deductions (total Lines 9 & 10).. .. . ... . . . . . . . ... .. .. . . . . . . . . . . .. . 11. 12. Net Value of Estate (Line 8 minus Line 11) . . .. .. . .. . . .. .. . . .. . . .. . . . . . .. 12. 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been made (Schedule J) . . . . . . . . . . . . . . . . . . . . . . . . 13. 14. Net Value Subject to Tax (Line 12 minus Line 13) . . . . . . . . . . . . . . . . . . . . . . . . 14. : TAX COMPUTATION. SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2) X .0_ 262,007.94 16. Amount of Line 14 taxable at lineal rate X.O_ 17. Amount of Line 14 taxable at sibling rate X .12 18. Amount of Line 14 taxable at collateral rate X .15 19. TAX DUE.. . . .. . . . . . .. .. .. .. . . . . . .. . . . . . .. . . . . . .. . . . . .. . .. . . . . . . . . 19. 20. FILL IN THE OVAL IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT 15056052059 Side 2 L Decedent's Social Security Number ...."................................................... 1196-16-9300 228,000.00 50,975.70 0.00 0.00 2,742.01 0.00 0.00 281,717.71 262,007.941 , 15. 0.00 16. 17. 18. 0.00 c:::> 150 1(0 ~ 'J/O p~./d - tV' IrPp c~ REV-1500 EX Page 3 Dec~dent's Complete Address: DECEDENTS NAME RALPH E RICE STREET ADDRESS 910 Myerstown Road 153 DECEDENTS SOCIAL SECURITY NUMBER 196-16-9300 CrrY Gardners STATE PA ZIP 17324 Tax Payments and Credits: 1. Tax Due (Page 2 Line 19) 2. CreditslPayments A. Spousal Poverty Credit B. Prior Payments C. Discount (1) 0.00 Total Credits (A + B + C ) (2) 3. InterestlPenalty if applicable D. Interest E. Penalty TotallnterestlPenalty ( D + E ) (3) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Fill in oval on Page 2, Line 20 to request a refund. (4) 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5) A. Enter the interest on the tax due. (5A) B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (5B) 0.00 Make Check Payable to: REGISTER OF WILLS, AGENT PLEASE ANSWER THE FOllOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred;.......................................................................................... D [i] b. retain the right to designate who shall use the property transferred or its income; ............................................ D [i] c. retain a reversionary interest; or.......................................................................................................................... D !il d. receive the promise for life of either payments, benefits or care? ...................................................................... D [i] 2. If death occurred after December 12, 1982, did decedent transfer property w~hin one year of death w~out receiving adequate consideration? .............................................................................................................. D [i] 3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? .............. D [i] 4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which contains a beneficiary designation? ........................................................................................................................ D [i] IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is three (3) percent [72 P.S. ~9116 (a) (1.1) 0)]. For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is zero (0) percent [72 P.S. ~9116 (a) (1.1) (i1)]. The statute does not exemot a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax retum are still applicable even if the surviving spouse is the only beneficiary. For dates of death on or after July 1, 2000: The tax rate imposed on the net value of transfers from a deceased child twenty-one years of age or younger at death to or for the use of a natural parent, an adoptive parent, or a stepparent of the child is zero (0) percent [72 P.S. ~9116{a){1.2)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is four and one-half (4.5) percent, except as noted in 72 P.S. ~9116(1.2) [72 P.S. ~9116{a){1)]. The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is twelve (12) percent [72 P.S. ~9116(a){1.3)].Asibling is defined, under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. REV-1502 EX+ (6-98) *' COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE A REAL ESTATE ESTATE OF RALPH E. RICE FILE NUMBER 21-06-0153 All real property owned solely or as a tenant In common must be reported at fair market value. Fair market value is defined as the price at which property would be exchanged between a willing buyer and a willing seller, neither being compelled to buy or sell, both having reasonable knowledge of the relevant facts. Real property which is jolntly-owned with right of survivorship must be disclosed on Schedule F. ITEM NUMBER 1. DESCRIPTION 892-894 Torway Road, Gardners, PA, Dickinson Township, Cumberland County Deed Book M-28, page 938 (Appraisal attached) VALUE AT DATE OF DEATH 228,000.00 TOTAL (Also enter on line 1, Recapitulation) (If more space is needed, insert additional sheets of the same size) 228,000.00 REV-1503 EX+ (6-98) . COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE B STOCKS & BONDS ESTATE OF RALPH E. RICE FILE NUMBER 21-06-0153 All property jolntty-owned with right of survivorship must be disclosed on Schedule F. ITEM NUMBER 1. DESCRIPTION VALUE AT DATE OF DEATH shs. Manulife Financial Corp. 2' !Dividend-855 shs. Manulife Financial Corp. TOTAL (Also enter on line 2, Recapitulation) (If more space is needed, insert additional sheets of the same size) REV-1508 EX + (6-98) '* COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE E CASH, BANK DEPOSITS, & MISC. PERSONAL PROPERTY ESTATE OF RALPH E. RICE FILE NUMBER 21-06-0153 Include the proceeds of litigation and the date the proceeds were received by the estate. All property jolntly-owned with right of survivorship must be disclosed on Schedule F. ITEM NUMBER DESCRIPTION VALUE AT DATE OF DEATH TOTAL (Also enter on line 5, Recapitulation) (If more space is needed. insert additional sheets of the same size) 1 Knouse Foods 1982 Rev. Fund Redemption 2 'Knouse Foods 1983 Rev. Fund Redemption 3 Knouse Foods 1984 Rev. Fund Redemption 4 Knouse Foods 1985 Rev. Fund Redemption 5 Knouse Foods 1986 Rev. Fund Redemption iKnouse Foods 1987-A Rev. Fund Redemption Knouse Foods 1987-B Rev. Fund Redemption ;Knouse Foods 1988-A Rev. Fund Redemption Knouse Foods 1988-B Rev. Fund Redemption Knouse Foods 1955 Rev. Fund Redemption Knouse Foods 1956 Rev. Fund Redemption 12 Knouse Foods 1957 Rev. Fund Redemption 13 Knouse Foods 1958-1960 Rev. Fund Redemption 14' Knouse Foods 1961-1962 Rev. Fund Redemption 15 Knouse Foods 1963 Rev. Fund Redemption 16. Knouse Foods 1985 Certificate of Equity Redemption Refund. Capital Blue Cross Refund, Westfield Group Insurance AgChoice Farm Credit, preferred refund Commonwealth of PA, peach crop refund REV-1511 EX+ (12-99) '* COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE H FUNERAL EXPENSES & ADMINISTRATIVE COSTS ESTATE OF RALPH E. RICE FILE NUMBER 21-06-0153 Debts of decedent must be reported on Schedule I. ITEM NUMBER A. DESCRIPTION Fl!NERA~ EXPENSES; Dugan Funeral Home, Inc. 1. B. ADMINISTRATIVE COSTS: 1. Personal Representative's Commissions Name of Personal Representative(s) Social Security Number(s)/EIN Number of Personal Representative(s) Street Address City State Year(s) Commission Paid: 2. AttomeyFees Martson, Deardorff, Williams & Otto 3. Family Exemption: (If decedent's address is not the same as claimant's, attach explanation) Claimant Patricia M. Rice Street Address 910 Myerstown Road City Gardners Zip Relationship of Claimant to Decedent Spouse State PA .Zip 17324 4. Probate Fees 5. Accountant's Fees 6. Tax Retum Preparer's Fees 7. M&T Bank, Agent for Patricia M. Rice, Executrix 8 Cumberland Law Journal, advertising Letters Testamentary 9' The Sentinel, advertising Letters Testamentary 10 Steven W. Barrett Real Estate, appraisal fee 11 Closing and Filing Costs AMOUNT 1,500.00 3,500.00 TOTAL (Also enter on line 9, Recapitulation) (If more space is needed, insert additional sheets of the same size) REV-1512 EX+ (12-03) *' COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE I DEBTS OF DECEDENT, MORTGAGE UABIUTlES, & UENS ESTATE OF RALPH E. RICE FILE NUMBER 21-06-0153 Report debts Incurred by the decedent prior to death which remained unpaid as of the date of death, including unrelmbursed medical expenses. ITEM VALUE AT DATE NUMBER DESCRIPTION OF DEATH 1. Lincare, Inc., balance due medical equipment 2 Elmwood Center Medical Assoc., balance due TOTAL (Also enter on line 10, Recapitulation) $ (If more space is needed, insert additional sheets of the same size) 126.70 REV-1513 EX+ (9-00) *' COMMONWEALTH OF PENNSYLVANIA INHERITANCE TAX RETURN RESIDENT DECEDENT SCHEDULE J BENEFICIARIES ESTATE OF RALPH E. RICE NUMBER I 1 NAME AND ADDRESS OF PERSON(S) RECEIVING PROPERTY TAXABLE DISTRIBUTIONS pnclude oulTight spousal dislTibutions. and transfers under l)Els:,911~ @) (1,?)] 'Patricia M. Rice, 910 Myerstown Road, Gardners, PA 17324 RELATIONSHIP TO DECEDENT Do Not List Trustee(s) Spouse FILE NUMBER 21-06-0153 AMOUNT OR SHARE OF ESTATE ENTER DOLLAR AMOUNTS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 18, AS APPROPRIATE, ON REV-1500 COVER SHEET n NON-TAXABLE DISTRIBUTIONS: A. SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT BEING MADE B. CHARITABLE AND GOVERNMENTAL DISTRIBUTIONS TOTAL OF PART 11- ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON LINE 13 OF REV-1500 COVER SHEET (If more space is needed, insert additional sheets of the same size) STEVENW. BARRETT REAL ESTATE AND APPRAISAL SERVICES 124-N. HANOVER STREET, CARLISLE, PA 17013 (717) 243-6646 Fie No. 06-0194 APPRAISAL OF l.OCA'TEl> A--r: 892~94 Torway Road Gardner., PA 17324'""046 FOR: M& T,lnvestmentGroup One West High street Carlisle, PA 17013 -BORROWER-: Ralph E., Jr., RICE Estate -AS~: January 21, 2008 BY.: Stan A. Skowronek Certified Residential Appraiser , . STEVEN W. BARRETT REAL ESTATE AND APPRAISAL SERVICES 124 N. HANOVER STREET, CARLISLE, PA 17013 (717) 243-6646 File No. 06-0194 05/17/2006 M & T, Investment Group One West High Street Carlisle, PA 17013 File Number: 06-0194 In accordance with your request, I have personally inspected and appraised the real property at: 892-894 Torway Road Gardners, PA 17324-9046 The purpose of this appraisal is to develop an opinion of the market value of the subject property, as improved. The property rights appraised are the fee simple interest in the site and improvements. In my opinion, the estimated market value of the property as of January 21,2006 is: $228,000 Two Hundred Twenty-Eight Thousand Dollars The attached report contains the description, analysis and supportive data for the conclusions, final estimate of value, descriptive photographs, limiting conditions and appropriate certifications. Respectfully submitted, ~Q.~\1i~ Stan A. Skowronek Certified Residential Appraiser Property Address 892-894 Torwav Road City Gardners State PA Zip Code 17324-9046 Leaal Description Deed Book M-28 Daae 938 Countv Cumberland Assessor's Parcel No. 08-16-0210-038B Tax Year 05/06 R.E. Taxes $2.814 Special Assessments $ N/A Neiahborhood or Proiect Name Dickinson TownshlD MaD Reference 16-0210 Census Tract 0127.00 .. Borrower RalDh E. Jr. RICE Estate Current Owner Rice RalDh E. Jr. OCCUDant: 11 Owner Ix I Tenant I I Vacant Property riahts appraised IX 1 Fee SimDle ] Leasehold I. Proiect Type I PUD r.1 Condominium HOA$ N/A /Mo. Sales Price $ N/A Date of Sale N/A Desaiption and $ amount of loan charaeslooncessions to be oaid bv sellerN/ A Lender/Client M & T Investment GrouD Address One West Hlah Street Carlisle PA 17013 Aopraiser Stan A. Skowronek Address 124-126 North Hanover St Carlisle. Pa. 17013 Location U Urban [ID Suburban 0 Rural Predominant Sin81e family housing Predominant 2-4 family housing DOver 75% 00 25-75% D Under 25% Single Family PRI E AGE 2-4 Family PRICE AGE Built up Occupancy $ (000) (yrs) Occupancy $ (000) (yrs) Growth rate D Rapid 00 Stable DSlow 00 Owner 95 120 Low New DOwner 120 Low New Property values 00 Increasing D Stable o Declining o Tenant 275 Hiah 100 . 00 Tenant 95 250 Hiah 100 Demand/supply R Shortage 00 In balance o Over supply 00 Vacant (0-5%) Predominant ~ Vacant (0-5%) Predominant Marketina time Under 3 mos. rxl3-6 mos. n Over 6 mos. n Vacant (over 5%) 150 40 Vacant (over 5%\ 150 50 Typical 2-4 family bldg. Type Detached No. stories 2 No. units 2-4 Age 50 yrs. Present land use % Land use change Typical rents $ 450 to $ 850 D Increasing 00 Stable 0 Declining - One family 40% o Not likely o Likely Est. neighborhood apt. vacancy 5% % 0 Increasing 00 Stable o Declining 2-4 family 0% 00 In process to: Rent controls DYes 00 N;-oLikely If yes or likely, describe Multi-family 0% Residential Commercial 0% Vac \ 60% Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood boundaries and characteristics: The subiect is bounded on the north bv Ritner Hwv. on the east bv York Rd. on the south by Myerstown Rd and on the west bv Baltimore Rd. Factors that affect the marketability of the properties in the neighborhood (proximity to employment and amenities, employment stability, appeal to market, etc.): There are no adverse factors to affect marketability of subiect. Diverse stable emDloyment and all sUDDortlng amenities are within easv drivina distance. SMSA 3240 . . . . ~ The following available listings represent the most current, similar, and proximate competitive properties to the subject property in the subject neighborhood. This analysis is intended to evaluate the inventory currently on the market oompeting with the subject property in the subject neighborhood and recent price and marketing time trends affecting the subject property. (Listinas outside the subiect neiahborhood are not considered applicable\. The Iistina comoarables can be the rental or sale comoarables if thev are currentlv for sale. ITEM SUBJECT COMPARABLE LISTING NO.1 COMPARABLE LISTING NO.2 COMPARABLE LISTING NO.3 892-894 Torway Road 204 N. Hanover Street 337 York Road 4 W. Main Street Address Gardners Carlisle Carlisle Walnut Bottom Road Proximitv to subiect 12.1 MI N 0.65 MI WNW 12.2 MI WNW Listing once $ X1Unf. r 1 Furn. $ 199.000 IXIUnf. I I Furn. $ 223 900 rxl Unf. r I Furn. $ 249.900 Approximate GBA 4224 5388 2000 5198 Data source InsD/CHR MLS/Courthse MLS/Courthse ADDDatalCourthse # UnitsIT ot. rrnsJBRlBA 2: 12' 8' 2.00 3: 11 ' 5' 3.00 4' 11' 3' 6.00 3~ 16' 10' 4.50 Approximate vear built 1980 1900 1900 1900 Aorox. days on market N/A 106 149 40 Comparison of listings to subject property: L1stina #1 has more GLAlunits and baths. It has fewer rooms/bedrooms. Listing #2 has less GLA. It has more units and baths. It has fewer rooms/bedrooms. L1stlna #3 has more units/rooms/bedrooms and baths. Market conditions that affect 2-4 family properties in the subject neighborhood (including the above neighborhood indicators of growth rate, property values, demand/supply, and marketing time) and the prevalence and impact in the subject market area regarding loan discounts, interest buydowns and concessions, and identification of trends in listing prices, average days on market and any change over the past year, etc.: Research of recent sales of 2-4 unit properties for the first calendar auarter Indicates an ayerage marketlna time of 120 days. Interest rates are relatively low' therefore few loan concessions are offered. Analysis of the days on the market and consideration of current economic trends Indicates a demand for inyestment orooerties in this orice ranae. Dimensions See leaal descriotion Topography Basicallv Level Site area 1.09 Acres mil Corner Lot 00 No DYes Size TVDical for area Specific zoning classification and description Aaricultural Shape Irreaular Zoning compliance 00 Legal 0 LegalIlCll1CXll1faTr (Grandfathered use) U Illegal U No zoning Drainage Aooears Adequate Highest & best use as improved: 00 Present use 0 Other use (explain) View Ooen country Landscaping Averaae Utilities Public Other Off-site Improvements Type Public Private Driveway Stone Electricity 00 200 & 100 amD Street Macadam 00 0 Apparent easements None Apparent Gas o ProDane Curb/gutter None 0 D Water DWell Sidewalk None D D FEMA Special Flood Hazard Area UYes ~No Sanitary sewer o Seotic Street lights None R R FEMA Zone X Map Date 12/19/1995 Storm sewer n Allev None FEMA Mao No. 421580 0003B Comments (apparent adverse easements, encroachments, special assessments, slide areas, illegal or legal nonconforming zoning, use, etc.): Private water and sanitarY svstems are common to the area and have no adverse affect UDon marketabilitv. . SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 06-0194 Freddie Mac Form 72 10-94 PAGE 1 OF 4 Fannie Mae Form 1025 10-94 Produced using ACt software, BOO.234.sn7 www.aclweb.com . ' SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 06-0194 General description Exterior description (Materials/condition) Foundation Insulation (R-vakJe f kooM1) Unitslbldgs. 2/1 Foundation ConcSlab/Ava Slab Full o Roof Stories 2 Exterior walls BrickNinyl/Ava Crawl space None 00 Ceiling * Type (det./att.) Detached Roof surface Fiberalass/Ava Sump Pump Yes 00 Walls * Design (style) 2 StOry Gutters & dwnspts. Aluminum/Ava Dampness N/A 00 Floor * Existinglproposed Existina Window type Double Huna/Ava Settlement N/A o None Under construction No Slam sash'Saeens Thermal/Avg Infestation N/A Adequacy Average Year Built 1980 Manufactured housing> UYes OONo Basement - % of 1 st floor area Energy efficient Uems: Effective age (yrs.) 5.1 0 >(Complies with the HUD Manufactured Housing Basementli1ish N/A Tvpical for aae and Averaae/Good Condition Construction and Safety Standards.) sMe Units Level(s) Foyer Livino Dinino Kitchen Den Familv rm. Bedrooms # Baths Laundry Other Sa. ft.lunit Total tZJ 1 1&2 1 1 4 1 area 1755 1 1&2 x 1 1 4 1 area 2469 Imorovements contain: 12 Rooms; 8 Bedroom(s); 2 Bath( s); 4,224 Sauare feet of GROSS BUILDING AREA GROSS BUILDING AREA (GBA) IS DEFINED AS THE TOTAL FINISHED AREA (INCLUDING COMMON AREAS) OF THE . IMPROVEMENTS BASED UPON EXTERIOR MEASUREMENTS. . . Surfaces (Materials/condition) Heating Kitchen equip. ( # / unit-cond.) Attic Car Storage No. Cars 0- Floors CarpeWlnvl Type FHA Refiigerator 2/Ava o None Garage . Panel/Drwll Oil/Propane RangeIoven 2/Ava o Stairs 0 Walls Fuel Carport . Trim/finish Wood Condition Ava/Ava Disposal 00 Drop stair Attached 0 . Bath floor Vinyl Dishwasher o Scuttle Detached 0 . Drvwall Fan/hood o Floor 0 Bath wainscot Cooling Adequate Doors Hollow Core Central No Compactor o Heated Inadequate 0 . o Finished 00 Averaae/Good Other None ~ Offstreet Condition N/A Microwave o Unfinished None 0 Fireolacels) # 1 Intercom Condition of the improvements, repairs needed, quality of construction, additional features, modernization, etc.: 1m provements are in averaae/aood condition with no physical or functional inadeauacies noted. Depreciation (physical, functional, and external inadequacies, etc.): There are no physical functional. or external Inadequacies apparent. . I Adverse environmental conditions (such as, but not limited to, ~azardous wastes, ~O.XiC substances, etc.) p.resent in the improvements, on the site, or in ~ the immediate vicinity of the subject property: No adverse environmental conditions are apparent/disclosed. . Jil a I VALUATION ANALYSIS ESTIMATED SITE VALUE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. = $ 38 000 Comments on Cost Approach (such as, source of cost estimate, site value, ESTIMATED REPRODUCTION COST-NEW OF IMPROVEMENTS: square foot calculation and, for HUD and VA, the estimated remaining Sq. Ft. @ $ =$ 0 economic life of the property): Cost Approach deemed a poor Sq. Ft. @ $ =$ indicator of value due to aae of the improvements. Estimated Sq. Ft. @ $ =$ Remainina Economic Life. 45.50 vears Sq. Ft. @ $ =$ Sq. Ft. @ $ =$ =$ . =$ . . =$ . . =$ . =$ · Special Energy Efficient Items =$ Porches, Patios, etc. =$ Total Estimated Cost New. . . . . . . . . . . . . . . . . . . . . . . . . . . . . =$ 0 Physical Functional External Less I I Depreciation =$ 0 Depreciated Value of Improvement~ . . . . . . . . . . . . . . . . . . . . . =$ 0 "As Is" Value of Site Improvement~ . . . . . . . . . . . . . . . . . . . . . . =$ INDICATED VALUE BY COST APPROACH. . . . . . . . . . . . . . . =$ N/A Freddie Mac Form 72 10-94 PAGE 2 OF 4 Produced using ...CI _. 800.234.8727 www..-b.com Fannie Mae Form 1025 10-94 SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT At least three rental comparables should be reported and analyzed in this section. The rental comparables should represent the most current rental information on properties as similar and proximate to the subject property as possible. (This comparison is based on current rental data, therefore, the rental comparables typically are not the same comparables used in the sales comparison analysis.) The appraisal report should assure the reader that the units and properties selected as comparables are comparable to the subject property (both the units and the overall property) and accurately represent the rental market for the subject property (unless otherwise stated within the report). ITEM SUBJECT COMPARABLE RENTAL NO.1 COMPARABLE RENTAL NO.2 COMPARABLE RENTAL NO.3 Add 892-894 Torway Road 501-503 Chestnut Street 612 N. Baltimore Avenue 107 -109 E. Pine Street ress Gardners Mt. Hollv Sorinas Mt. Holly Springs Mt. Hollv Sorinas Proximity to subject 5.8MI N 6.5MI N 5.9MI N Lease dates (W avaiable) Annual Lease Annual Lease Annual Lease Annual Lease Rent survev date 05/16/5006 05/16/5006 05/16/5006 05/16/5006 Data source Owner MLS MLS MLS Rent concessions None None None None No. Units2 f\b. Vac. 0 No. Units2 No. Vac. 1 Yr.Bt: 1900 No. Unils2 No; Vac. 1 Yr.Bt: 1900 No. Unls2 No. Vac. 1 Yr.Bl: 1900 Description of Yr. BIt.: 1980 property - units, 2 StOry 2 StOry 2 StOry 2 StOry design, app~al, Aot. Blda. Aot. Blda. Aot. Blda. Apt. Bldg. age, vacancies, Avg/Good Average Average Averaae and conditions Rm. Count Size Rm. Count Size Total Rm. Count Size Total Rm. Count Size Total Tot Br Ba So.Ft. Tot Br Ba Sa. Ft. MJnthIv Rent Tot Br Ba Sa.Ft. MJnthIv Rent Tot Br Ba Sa.Ft. Mlnthlv Rent Individual 6 4 1 1755 5 3 1 1100 550 4 2 1 1570 800 4 2 1 1250 500 unit 6 4 1 2469 4 2 1 1100 550 4 2 1 714 590 4 2 1 1250 500 breakdown 0 0 None None Water/SewerlTrash None Utilities, Electric furniture, and amenities included in rent No basement Full Basement Full Basement Full Basement . Functional utility, FHA/None FHA/None FHA/None HWBB/None . basement, Garaae · heating/coolinQ, . project amenities, etc. . Analysis of rental data and support for estimated market rents for the individual subject units (including the adjustments used, the adequacy of comparables, rental concessions, etc.) II Rental #1 has less GLA and fewer rooms/bedrooms. It has a basement. Rental #2 has less GLA and fewer rooms/bedrooms. It . has a basement. Rental #3 has less GLA and fewer rooms/bedrooms. It has a basement and a garaae. All comoarable rentals . . are considered to be in averaae condition. . . Subject's rent schedule The rent schedule reconciles the applicable indicated monthly market rents to the appropriate subject unit, and provides the estimated rents for the subject property. The appraiser must review the rent characteristics of the comparable sales to determine whether estimated rents should reflect actual or market rents. For example, if actual rents were available on the sales comparables and used to derive the gross rent multiplier (GRM), actual rents for the subject should be used. If market rents were used to construct the comparables' rents and derive the GRM, market rents should be used. The total gross estimated rent must represent rent characteristics consistent with the sales comparable data used to derive the GRM. The total gross estimated rent is not adjusted for vacancy. LEASES ACTUAL RENTS ESTIMATED RENTS Lease Date No. Per Unit Total Per Unit Total Unit Beain Units Unfurnished Furnished Rents Unfurnished Furnished Rents End Vacant 1 Annual 0 $ 650.00 $ $ 650.00 $ 700.00 $ $ 700.00 1 Annual 0 600.00 600.00 800.00 800.00 2 0 $ 1,250.00 $ 1,500.00 Other monthly income (rtemize) None $ Vacancy: Actual last year Unk % Previous year -2 % Estimated: -2 % $ 900.00 Annually Total gross estimated rent $ 1.500.00 Utilities included in estimated rents: 0 Electric 0 Water 0 Sewer 0 Gas 0 Oil o Trash collection 0 None Comments on the rent schedule, actual rents, estimated rents (especially regarding differences between actual and estimated rents), utilities, etc.: Rents aooear below market for the size of the units and the number of bedrooms. Freddie Mac Form 72 10-94 PAGE 3 OF 4 Produced using ACl softw.... 800.234.8727 www.eclweb.com 06-0194 Fanme Mae Form 1025 10-94 SUMMARY APPRAISAL REPORT SMALL RESIDENTIAL INCOME APPRAISAL REPORT 06-0194 The undersigned has recited three recent sales of properties most similar and proximate to the subject property and has described and analyzed Ihese In this analysis. If there Is a significant variation belween the subject and comparable properties, the analysis Includes a dollar adjustment reflecting the market reaction to those items or an explanation supported by Ihe market data. 11 a slgnlflcanlltem In the comparable pro.perty Is superior to, or more favorable than, the subject property, a minus (.) adjuslment is made, thus reducing the adjusted sales price of the comparable property; If a slgnlllcantltem In Ihe comparable property Is Inferior to, or less favorable than, the sublect oroDerlY, a Dlus 1.1 adlustmentls made, thus Incre..lnD the adlusted Drlce of the comDarable nronertv. 1/1\ Sales Price - Gross Monthlv Rent 1 ITEM I SUBJECT COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 892-894 Torway Road 306 W. King Street 300 S. Hanover Street 129 S. Pitt Street Address Gardners Shiooensbura Carlisle Carlisle Proximitv to subiect 18.9 MI W 11.5 MI N 11.7 MI N Sales price $ N/Arr Unf. T Furn. $ 249 000 X Unf. r Furn. $ 245.500 Unf. I Fum.$ 223 000 Sales orice oer GBA $ 53.98 $ 62.39 $ 76.72 $ 70.44 Gross monthlv rent $ 1 500 $ 2100 $ 2.100 $ 1500 Gross mo. rent mutt. (1) 152.00 118.57 116.90 148.67 Sales price per unit $ 114000 $ 83 000 $ 81 833 $ 0 Sales price per room $ 19.000 $ 19154 $ 17.536 $ 0 Data and/or App.Data MLS MLS Verification Sources Courthouse Courthouse Courthouse ADJUSTMENTS DESCRIPTION DESCRIPTION , + (.) $ Adjustment DESCRIPTION , . (.) $ Adjustmenl DESCRIPTION , + (.) $ Adjustment , Sales or financing Unknown , None,Conv , Unknown , , , , , , , concessions , , , , , , Date of sale/time 01/20/2005 , 7470 OS/28/2004 , 7.365 12/28/2005 , , Location Suburban Suoerior 1-5%) , -12450 Superior 1-5%\ , -12.275 Suoerior (-5%) , , , , -11 150 Leasehold/Fee Simple Fee Simcle Fee Simcle , Fee Simole , Fee Simple , , , , Site 1.09 Ac/Ava .42 Ac/AvCl , .2 Ac/Ava , .06 Ac/Ava , , , View Ocen countrY Residential , Residential , Residential , , , , Design and aooeal 2 StorY/Good 2Stv/3UnitlGood : 2 Story/Good , 2 StorY/Good , , , . Qualitv of construction Averaae Averaae , Averaae , Average , , Age 26 Years 100 Years , 100 Years , 100 Years , . , , , Condition Ava/Good Good(..5%\ , -12 450 Goodl-5%\ , -12.275 Ava/Good , . , , , Gross Buildina Area 4 224 S . ft. 3 991 S .ft.' 3.495 3.200 S .ft.' 15.360 3 166 S .ft.' 15 870 . , , , . 15 t<<>. Rm. count No. t<<>. Rm. count No.: t<<>. Rm. count , t<<>. Rm. count , . d d U~l! No.1 d No.1 unit Tal Br Ba Vac. units Tot Br Ba Vac.' Tot Br Ba Vac,: unit Tot Br Ba Vac! , , . 1 6 4 1 0 1 4 1 2 l' -3,000 1 8 6 1.5 1 ' -1,500 Unit 3 1 1 0' breakdown 1 6 4 1 0 1 5 2 1 1 : 1 3 1 1 0: 4 2 1 0: . 0 1 4 1 1 0: -5,000 1 3 1 1 0: -5,000 3 1 1 0: -5,000 0 , , , , , Basement descriotion None Full Bsmt , 2.000 Part. Bsmt , 1.000 Full Bsmt , , , , 2.000 Functional utilitv Averaae Averaae , Averaae , Averaae , , , , Heatina/coolina Oil/Procane FHA HWStm/CA1stF , -3.000 EBB/None , HW/None , , Parkina on/off site 4 Cars 2CDetG/3CDetG , Off Street , None , , , , Project amenities and Covered Patio Prches/Balcny , -2,500 Porches , -1,500 None , 1,000 , , I , , , fee (if aoolicable) , , , 1 Fireclace 2 Fireolaces , -3.000 None , 3.000 None , 3.000 , , , Net Adi. (total) I l + IXI. $ 28.435 I I. Ixl. $ 5.825 TxT. I I. $ 5.720 Adj. sales price of Gross: 21.8% Gmss: 24.1% Gross: 17.0% comparables Net: -11.4% $ 220.565 Net: -2.4% $ 239.675 Net: 2.6% $ 228.720 Comments on Sales Comparison (including reconciliation of all indicators of value as to consistency and relative strength and evaluation of the typical investor's1purchaser's motivation in that market): Ocinion of value ranae is $220 000 to $240 000. No site adiustments made since all of the comcarables are on cublic water/sewer. Lack of multi-familv sales in the subiects immediate area resulted in an excanded search area. Location adiustments reflect the comoarables beina in a more copulated and active rental market. These are the best multi- familv comcarables known to be available. Time adiustment is at 3%/annum. ITEM SUBJECT COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 Date, Price and Data 06/29/1979 12/02/1965 12/08/1999 07/24/1996 Source for prior sales $1.00 $15,000 $1.00 $1.00 within vear of appraisal Courthouse Courthouse Courthouse Courthouse Analysis of any current agreement of sale, option, or listing of the subject property and analysis of any prior sales of subject and comparables within one year of the date of appraisal: No prior transfers of the subiect within the cast 36 months and no prior transfers of the comoarables within 12 months of their sale date. Total gross monthly estimated rent $ 1,500 x gross rent multiplier (GRM) 135.00 =$ 202,500 INDICATED VALUE BY INCOME APPROACH Comments on income approach (including expense ratios, if available, and reconciliation of the GRM) The comcarable GRM has a mean of 128 and a standard deviation of 8. Based uoon this analvsls we reconcile the GRM at 135. INDICATED VALUE BY SALES COMPARISON APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 228 000 INDICATED VALUE BY INCOME APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 202 500 INDICATED VALUE BY COST APPROACH ............................. 0 . , . . . . , , , . . . ~ N/A This appraisal is made ~ 'as is' 0 subject to the repars, alterations, inspections or conditions listed below subject to completion per plans and specifications. Comments and Conditions of Appraisal: The crooertv has been appraised In current condition. This accraisal is for client's purposes onlv. nontransferable. See attached addendum. Final Reconciliation: The Market Data Analvsis suooorts mv estimated market value of the subiect. The Cost Accroach was not · deemed an accrocriate indicator of value due to the aae of the subiect and therefore was not included herein. The Income . Accroach was also deemed inaoorooriate for this analysis. The purpose of this appraisal is to estimate the market value of the real property that is the subject of this report, based on the above conditions and the certification, contingent . and limiting conditions, and market value definition that are stated in the attached Freddie Mac Form 439/Fannie Mae Form 1 004B (Revised 6/93 ). I (WE) ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THS REPORT, AS OF 01/21/2006 . (WHICH IS THE DATE OF INSPECTION AND THE EFFECTIVE DATE OF THIS REPORT) TO BE $ 228,000 . APPRAIS~ ~ ~ S.UPE:~ APPkJ (jLYf REQUIRhI o Did [X) Did Not Signature - Q. . I,)CQ.! Sianature ---= Name Stan A. Skowronek Name Steven W. Barrett, SRPA, SRA I nspect Property Date Report Signed 05/17/2006 Date Report Signed 05/17/2006 State Certification # RL-001572-L State P A State Certification # GA-000298-L State PA Or State License # State Or State License # RB-026921-A State P A Freddie Mac Form 72 10-94, ~- . . Fanme Mae Form 1025 10.94 Appraiser Certified ReSidential Produced using AClsollware, 8OO.234.8727www.oclweb.com Certified General S.W. Barrett Real Estate & Appraisal Services Appraiser Operating Income Statement SUMMARY APPRAISAL REPORT One- to Four-Family Investment Property and Two- to Four-Family Owner-Occupied Property 06-0194 Property Address 892-894 Torway Road Gardners PA 17324.9046 Street City State Zip Code General Instructions: This form is to be prepared jointly by the loan applicant, the appraiser, and the lender's underwriter. The applicant must complete the following schedule indicating each unit's rental status, lease expiration date, current rent, market rent, and the responsibility for utility expenses. Rental figures must be based on the rent for an "unfurnished" unit. Paid By Tenant 00 00 00 o o Trash Removal . . . . .n [Xl The applicant should complete all of the income and expense projections and for existing properties provide actual year-end operating statements for the past two years (for new properties the applicant's projected income and expenses must be provided). This Operating Income Statement and previous operating statements the applicant provides must then be sent to the appraiser for review, com- ment, and/or adjustments next to the applicant's figures (e.g., Applicant/Appraiser 288/300). If the appraiser is retained to complete the form instead of the applicant, the lender must provide to the appraiser the aforementioned operating statements, mortgage insur- ance premium, HOA dues, leasehold payments, subordinate financing, and/or any other relevant information as to the income and expenses of the subject property received from the applicant to substantiate the projections. The underwriter should carefully review the applicant's/appraiser's projections and the appraiser's comments concerning those projections. The underwriter should make any final adjustments that are necessary to more accurately reflect any income or expense items that appear unreasonable for the market. (Real estate taxes and insurance on these types of properties are included in PIT! and not calculated as an annual expense item.) Income should be based on current rents, but should not exceed market rents. When there are no current rents because the property is proposed, new, or currently vacant, market rents should be used. Annual Income and Expense Projection for Next 12 months Unit NO.1 Yes x Unit No.2 Yes x Unit No.3 Yes Unit No.4 Yes Total Currently Rented No No No No Current Rent Per Month 600 $ 650 $ $ $ $ Expiration Date . Annual Annual $ $ $ $ $ Market Rent Per Month 700 800 Paid Utility Expense By Owner Electricity . . . . . . . . .0 Gas . .. .. .. . . .. ..0 FuelOil ..........0 Fuel (Other) . . . . . . .0 Water/Sewer. . . . . . .0 1,250 1,500 Income (Do not include income forowner-occupied units) . Gross Annual Rental (trom unit(s) to be rented) ...................... $ Other Income (include sources) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. + Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Less Vacancy/Rent Loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. - Effective Gross Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ Expenses (Do not include expenses for owner-occupied units) Electricity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gas.................................................. . FueIOil................................................ . Fuel .......................... .(Type- ) Water/Sewer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trash Removal ........................................... Pest Control ............................................. Other Taxes or Licenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Casual Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This includes the costs for public area cleaning, snow removal, etc., even though the applicant may not elect to contract for such services. Interior PainUDecorating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This includes the costs of contract labor and materials that are required to maintain the interiors of the living units. General Repairs/Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This includes the costs of contract labor and materials that are required to maintain the public corridors, stairways, roofs, mechanical systems, grounds, etc. Management Expenses ..................................... These are the customary expenses that a professional manage- ment company would charge to manage the property. Supplies .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . This includes the costs of items like light bulbs, janitorial supplies, etc. Total Replacement Reserves - See Schedule on Pg. 2 ............... Miscellaneous .............................................. ...................................................... . ...................................................... . ...................................................... . ...................................................... . ...................................................... . ...................................................... . ...................................................... . ...................................................... . Total Operating Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ By ApplicanUAppraiser 15,000 Adjustments by Lender's Underwriter $ + $ 15,000 750.00 ( 5%) 14,250 %) $ 750 1,067 1,817 $ .' SUMMARY APPRAISAL REPORT 06-0194 Replacement Reserve Schedule Adequate replacement reserves must be calculate regardless of whether actual reserves are provided for on the owner's operating statements or are customary in the local market. This represents the total average yearly reserves. Generally, all equipment and com- ponents that have a remaining life of more than one year-such as refrigerators, stoves, clothes washers/dryers, trash compactors, furnaces, roofs, and carpeting, etc.-should be expensed on a replacement cost basis. Equipment Replacement Remaining By Applicantl Lender Cost life Appraiser Adjustments Stoves/Ranges ..... @$ 350.00 ea.+ 12 Yrs. x 2 Units =$ 58.33 $ Refrigerators . . . . . . . . @$ 300.00 ea.+ 15 Yrs. x 2 Units =$ 40.00 $ Dishwashers. . . . . . . . @$ ea.+ Yrs. x Units =$ $ AlC Units .......... @$ ea.+ Yrs. x Units =$ $ C. Washer/Dryers .... @$ ea.+ Yrs. x Units =$ $ HW Heaters. . . . . . . . . @$ 175.00 ea.+ 10 Yrs. x 2 Units =$ 35~00 $ Furnace(s). . . . . . . . . . @$ 4,000.00 ea.+ 20 Yrs. x 2 Units =$ 400.00 $ (Other) . . . . . . . . . . . @$ ea.+ Yrs. x Units =$ $ Roof. . . . . . . . . . . . . . @$ 8,000.00 15 Yrs. x One Bldg. = $ 533.33 $ Carpeting (Wall to Wall) Remaining Life (Units) _ Total Sq. Yds. @ $ (Public Areas) _ Total Sq. Yds. @$ Per Sq. Yd. + Yrs. = Per Sq. Yd. + _ Yrs. = $ $ $ $ Total Replacement Reserves. (Enter on Pg.1) $ 1,066.66 $ Operating Income Reconciliation $ 14,250.00 - $ Effective gross Income 1,817.00 Total Operating Expenses =$ 12,433.00 + 12= $ Operating Income 1,036.08 Monthly Operating Income $ 1,036.08 - $ Monthly Operating Income Monthly Housing Expenses =$ 1,036.08 Net Cash Flow (Note: Monthly Housing Expense includes principal and interest on the mortgage, hazard insurance premiums, real estate taxes, mort- gage insurance premiums, HOA dues, leasehold payments, and subordinate financing payments.) Underwriter's instructions for 2-4 Family Owner-Occupied Properties · If Monthly Operating Income is a positive number, enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003. If Monthly Operating Income is a negative number, it must be included as a liability for qualification purposes. · The borrower's monthly housing expense-to-income ratio must be calculated by comparing the total Monthly Housing Expense for the subject property to the borrower's stable monthly income. Underwriter's instructions for 1-4 Family Investment Properties · If Net Cash Flow is a positive number, enter as "Net Rental I ncome" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003. If Net Cash Flow is a negative number, it must be included as a liability for qualification purposes. · The borrower's monthly housing expense-to-income ratio must be calculated by comparing the total monthly housing expense for the borrower's primary residence to the borrower's stable monthly income. Appraiser's Comments (including sources for data and rationale for the projections) Forecasted rents appear fair for the local market conditions. Stan A. Skowronek Appraiser Name Certified Residential Appraiser Underwriter's Comments and Rationale for Adjustments ~~Q.~~r~~ Appraiser Signature 05/17/2006 Date Underwriter Name Underwriter Signature Date Freddie Mac Form 998 Aug 88 PAGE 2 OF 2 Produced using ACt software, 800.234.8727 www.aclweb.com S.W. Barrett Real Estate & Appraisal Services Fannie Mae Form 216 Aug 88 .' FLOORPLAN Borrower: Ralph E., Jr., RICE Estate Property Address: 892-894 Torway Road City: Gardners Lender: M & T Investment Grou .J::. - ro Laundry Bedroom Bedroom CO Bedroom Utility 8. p. c I I Kitchen L' Living Recreation Room Foyer ~,~ <<.,,'1> r'"' ,... f" File No.: 06-0194 Case No.: State: PA Zip: 17324-9046 Sketch by Apex IV Windows™ AREA CALCULATIONS SUMMARY Code Description Size Totals GLAl Unit #1 - 1st Floor 960.00 Unit #2 - 1st Floor 1152.00 2112.00 GLA2 Unit #2 - 2nd Floor 1317.00 Unit #1 - 2nd Floor 795.00 2112.00 pip Covered Patio 280.00 280.00 TOTAL LIVABLE (rounded) 4224 LIVING AREA BREAKDOWN Breakdown Subtotals Unit #1 - 1st Floor 30.0 x 32.0 960.00 Unit #2 - 1st Floor 32.0 x 36.0 1152.00 Unit #2 - 2nd Floor 15.0 x 47.0 705.00 17.0 x 36.0 612.00 Unit' #1 - 2nd Floor 17.0 x 30.0 510.00 15.0 x 19.0 285.00 6 Areas Total (rounded) 4224 .., ~tlq,ii1"t!;tn.rMQf'-=~Tl PHOTGAIHlENQUM File No..:~..o194 '.}a~ lei!;;;' Sorrower: Ralph E.. Jr.. RICE Estate ,j)roperl:vAddress: 892-894 Torwav Road City: Gardners LAnder: M& T . Investment GrouD State: PA :ZIP:.17\324-'OOliI.6 '~'1-.--- FRoNT'VIEW OF SUBJECT PROPERTY Appraised Date: January 21,2006 Appraised Value: $ 228,000 REAR VIEW OF SUBJECT PROPERTY STREET SCENE \'oumrAKAtJl,.1: t"KUt"I:KIT ~HgTg ADDeNDUM File No.: 06-0194 Case No.: -eOlTowel': Ralph E.. Jr.. RICE Estate Property Address: 892-894 Torway Road City: Gardners Lender: M & T. Investment GrOUD State: PA / / Zip: 17324-9046 COMPARABLE SALE #1 306 W. King Street Shlppensburg Sale Date: 0112012005 Sale Price: $ 249,000 COMPARABLE SALE #2 300 S. Hanover Street Carlisle Sale Date: 0512812004 Sale Price: $ 245,500 COMPARABLE SALE #3 129 S. Pitt Street Carlisle Sale Date: 1212812005 Sale Price: $ 223,000 Borrower: Ralptr E., Jr;, RICE Estate PrOperty Address: 892-894 Torway Road City: Gardners Lender: M & T Investment Grou File Na;: 08.;Q1.. Case No.: State: PA , Zip: 17324-9048 flooamrOrD\atlOn Community: 421:i80. DICKINSON, TmNNSHfP (IF PropeIty is not In:l FBAA;sp6Cl3l1/oodh3nld.... N;ap t.Unb..: 421600 00038 1oAIp" 0...: 12n0110D6 Pinel: 0003& FIPS: G41 Zono:X FIoodMap Legend FIOOO zones .........1nundIII.d by.s.oo.)'1I.r ftoodlnli ARM ....oflhe 100- and 500-)'\lNf~ _ Mas bIndIItcl byt.,.., IICodlnll _ Ntas bMdIlI.d by tao.,.arllCodlnllwllln.IDCUV..... _ I'IWIIWIrf "'$ _ FModWet ....asWIIIt \ltIO~ h.nfd ....,.. GfUlMllltrmlnM IMII pros'" tItolIhanrds MOl nd flilIIl*I 0I'i anyptlMShtd FIRM Neither Tl3nsamenca FloodH~ Certification CffH C) nor ACI makeanv Ilepn!RIlI:ationsa W3II3I'lliesto. any p:lJtyccncerringthecortent,lCcul1cyo- oompIeteness: oUhls 11000 ~port."lnclu:linO anvwlmIl'It1f of II'\fthiIllt3l:lilily 0- fitnessfo-:lpatloutlrpurpose. NelthaTTFHC norAClnor1he seller o1this ilood report shall have any 11IblkY to ;rnrthi'd p;nr:v 'tor any use a misuse of this: flood ntpOrt. LOCATION MAP Borrower: Ralph E., Jr., RICE Estate Property Address: 892-894 Torway Road City: Gardners Lender: M & T Investment Grou File No.: 06-0194 Case No.: State: PA Zip: 17324-9046 ~PRINGS YORK RD TELE ATLAS NA. INC \'; Prepared'rYf. Steven W Barrett RE. Appr. Svc. (717) 243-6646 41 mi les File No. 06-0194 ********* QUALIFICATIONS ********* The following checked items are SPECIFIC SPECIAL CONDITIONS that were identified by this appraiser during the inspection of the subject property, the com parables sales, and their neighborhoods and locations. Unless otherwise noted, the conditions that apply to the subject property or the comparable sales used DO NOT AFFECT THE MARKET VALUE OR THE FUTURE MARKETABILITY OF THE SUBJECT PROPERTY BEING APPRAISED. This Is not a home Inspection service. This is an appraisal to estimate market value. _1. The subject is located in a rural area and is less than 25% built-up. _ _2. Commercial/Industrial uses are located within the subject's neighborhood. These uses are typical of similar neighborhoods. _x_3. Vacant and undeveloped land uses are located within the subject's neighborhood. These uses are typical for the area. _ x_ 4. The predominant value In the neighborhood is less than that of the market value of the subject property. This is due to the very wide range of value of properties in the area and superior quality of the subject property. _5. The subject property is located in a F.E.M.A. Identified Flood Zone. Flood insurance coverage is required and suggested. _6. Dampness is noted in the basement of the subject. Standing or running water was not present on basement floor. This condition is considered typical in dwellings of this style~ _x_7. The subject property is serviced by private well and/or septic systems which is common for the area. _x _8. The subject is older than five(5) years. All mechanical systems including the heating, electrical and plumbing systems appear upon a visual exterior inspection to be in working order. No warranties are implied in this statement. _9. Repair items were noted in the comments section of the report. These comments on repair items are for descriptive purposes only and are not required repairs. The items listed are cosmetic in nature. _10. The basement floor is a dirt floor. This condition is common and typical for the area. and does not pose a health or safety hazard. _11. The subject property does contain functional obsolescence as noted in the report. This condition is considered typical and common for the area and this style dwelling. _12. The land value exceeds 30% of total value due to the high demand for vacant land in this neighborhood. This condition is considered common and typical for the neighborhood. _13. The land value exceeds 30% of total value. This is due to the large size of the site. This condition is considered to be typical and common. _14. Individual adjustments were required that exceed 15%. These adjustments were required due to lack of more similar com parables on that individual rating. All comparables used are the best available. _ _15. Total adjustments exceed 25%. This is due to the lack of comparable sales that were more similar in the subject's market area. All com parables used are the best available. _x16. One or more comparable sales are older than six(6) months. Although there are comparable properties in the subject's area, none have sold recently; therefore, sales in excess of six(6) months have to be used. All com parables used are the best available. _x _17. One or more com parables used were in excess of one (1) mile from the subject property. Although there are comparable properties in the immediate area, none have sold recently. Therefore, it was necessary to use comparable sales outside of the immediate area. All com parables used are located in similar neighborhoods and within the same marketing area. All com parables used are the best available. _18. The electrical system was not connected during inspection. _19. The water service was not connected during inspection. _20. The heating system was shut down during inspection. _21. Roofing_Piumbing_Electrical_Heating_certification(s) is/are suggested. 22. Inground swimming pool_, out buildings_are included~not Included_according to lender's guidelines. _23. According to lender's guidelines a maximum of_acres were considered for this valuation. Remaining acreage was given no value. File No. 06-0194 ********* QUALIFICA liONS ********* _24. The subject property is located on a private road. _25. Wood infestation inspection is suggested. _x_26. Last recorded deed transfer: Date_06/29/1979_. Consideration: $_1.00 _27. Proposed construction/renovation in accordance to plans and specifications to be completed in a workman-like manner. _28. Seller is paying part or all of closing costs. _x29. All comparable sales are verified closed sales. _x_30. There are no special conditions or other requirements that would affect market value or future marketability in the Appraisal Report. CHECKED ITEMS ARE SPECIFIC SPECIAL CONDITIONS THAT WERE IDENTIFIED BY THIS APPRAISER DURING INSPECTION. ( .' I. , , .. , :1.1 ~ ~ ~ ~ ' t;; it ~ 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 II arrangements to do so have been made beforehand. ~ I I , I I; 1.:\ ~; If I.'.'. I , "sJ , i I ~i I ~ ~ I ~ it ~El ii!' .~,;;' I I :;~:l f~ I 'I m, i '~....'.'..~ " J;' ~ I -,. lli, ~i~ I to ' ,. '..'..:...;......'\.i~....:..'. ' '.~, ;'~ i:. .- '~rl . !' "<l). File No. 06-0194 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 considers his 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 LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following 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. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report 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 the appraisal report whether 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. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, 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 normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc. ) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. 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, the appraisal report must not be considered as an environmental assessment ofthe property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. 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 completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form 439 6-93 Page 1 of2 Fannie Mae Form 1004B 6-93 File No. 06-0194 APPRAISERS CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to , or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, 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. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. 7. I performed this appraisal in conformity 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 as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of 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 the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: 892-894 Torway Road. Gardners. PA 17324-9046 APPRAISER: Signature: ~c. . ~u.,) rc;&.\Q.l. Name: Stan A. Skowronek . . Date Signed: 05/17/2006 State Certification #: RL-001572-L or State License #: State: PA Expiration Date of Certification or License: June 30. 2007 SUPERVISORY APPRAISER (only if required) Signature: s-::= .-J - / { ~ 11- Name: Steven W. Barrett. SRPA, SRA Date Signed: 05/17/2006 State Certification #: GA-000298-L or State License #: RB-026921-A State: P A Expiration Date of Certification or License: June 30. 2007 o Did 00 Did Not Inspect Property Certified Residential Appraiser Freddie Mac Form 439 6-93 Certified General Appraiser Page 2 of 2 Fannie Mae Form 1004B 6-93