This short sale lender requiring an appraisal rather than a BPO, the kicker...they will not pay for it and will not approve the short sale without it.  They are expecting the listing and selling agent to pay for it.  I am the buyer’s agent and not in touch with this lender, any advice will be appreciated.

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More details please:

  • Who is the lender?
  • Who is the investor?
  • Is the buyer cash?

I would ask the buyer to pay for it and see where that goes.  Maybe have the buyers lender order it and then you can use it for the short sale and for the buyers loan if they have a loan.

Another thing to try:  Call your favorite appraiser and explain the situation and ask how much they would charge IF you help them with the comps, measurements and pictures.  Remember that appraisals cost $400 but the appraiser does not get $400 because most go thru a third party service and they take their share

Jeff,

 

Short Sale Lenders are USDA - Ship - County

 

Thank you Jeff all very good suggestions but I am hitting brick walls.

 

The buyer has also applied for a USDA loan because they have no money to put down on the property, so they are not able to pay for this appraisal.  I contacted the lender to ask if they would order the appraisal and provide it to the short sale lender and they said they would not order the appraisal without the short sale approval nor would they provide it to the short sale lender.

 

I just called a local appraiser that I know and she informed me that they are so tightly regualted at this point that they could not allow us (agents) to provide any information pertaining to an appraisal.   

 

Thanks you, Bev

Bev,

just a few thoughts, it has been looooonnggg day.

Choosing to work with cash poor buyers is a business decision.  If they can not afford a $400 appraisal, how can they afford to purchase a home?  We do alot of USDA around here too and I understand the income limits and why someone uses USDA and Ship.  Taking on one like this knowingly, you may have to pay for the appraisal.  I wouldn't but that is just me but if you want to help them , you may have to pay it.

Back to USDA, I have never had to pay for an appraisal on a USDA backed short sale.  Who is the servicer of the loan?  Who do they make their payments to? US Bank services them in my area.

The local appraiser is just blowing you off.  All you need is a normal appraiser and you can get that from any appraiser that you want to.  Some agents have appraisals done before listing a home, that is all that you need..  There is no law that says you can not discuss an appraisal with the appraiser.  A local credit union requires the same thing and I have the seller contact an appraiser to get an appraisal and we submit that,

Two more thoughts, find a new lender and find a new appraiser........ find both that understand what you are trying to accomplish.

Bev - I have a USDA short sale going on now - the short sale lender has paid for the appraisal... Bank of America... 

I tell them that is their responsibility to order and pay as their duty in Servicing the Loan.  Final Answer.

I would tell them I'm happy to pay and get the appraisal, as long as you were the first person to see the value so you know what you're dealing with.

I'd pay the appraisal and get on down the road.  Next play..

As a National law firm negotiating shortsales, we advise every seller to pay for an appraisal and a home inspection at the time of listing so we can exhibit and deal with potential issues. If a lender requires an appraisal, they almost always order and poay for it. WHo is the lender?

x

x?

 

My understanding is that they are not allowed to list the property for more than the appraisel if they get it . You may see more lenders doing this if they think that it may come in lower. Just had one like this .Try and get the buyer to pay for it thru the lender if it is a financed deal if cash then go back to lender. Good luck

Although this situation is one that I haven't seen yet, I tend to agree with Jeff Payne.  The seller hasn't made mortgage payments in several months and has been pocketing his mortgage payment.  He should have sufficient funds to pay for the appraisal on his home.  I must admit, however, this a very strange request.  I certainly hope that this doesn't become viral and have the banking community requiring appraisals instead of BPOs. 

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