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.
You need to be a member of Short Sale Superstars to add comments!
**********************************
like buttons
Replies
Two questions.
1. Is the Short Sale Servicer going to put it in writing if the Appraisal supports the offer they will approve?
2. What if the Appraisal doesn't support the offer?
This is a quote from someone else and why paying for Appraisal is risky and may be worthless in my opinion. -
'Has anyone had luck getting Freddie to come off a ridiculous value by disputing with paying for your own appraisal and they still reject it? Our appraisal was $30k less on a $200k property but I got an email back that they have "ancillary" sources that say our appraisal was inaccurate but won't even try to work with buyer offering $200k!! NEVER SEEN this before!'
Buyers agent ultimately agreed to pay for it.
The GOOD NEWS - you get to see EXACTLY what numbers the bank is using
and
there is a REALLY good chacne the value will come in wher eyou NEED IT (virtually no BPO or valuation isues to overcome)
and
If you work with a good title company you can get it reimbursed at closing.
Don't seat it, work with a good negotiator....hint hint I happen to know one......pay the $400, get the deal done....get PAID and let your Seller avoid foreclosure....EVERYONE WINS!!!!
;-)
Bev,
I once had this same request, but when I asked the question, "Are you sure you don't mean a Market Analysis?" the answer was, "Oh Yeah.". Just thought I'd throw that out there just in case the person you are dealing with doesn't have a clue. Some of them don't.
Is the short sale lender trying to establish the value of the home by using appraisal instead of BPO? What kind of loan sellers have? Do they have conventional, FHA, VA? If the lender is trying to establish value for themselves than it is their responsibility to pay for it. Find out who are the investors on this property.
Natalie Arndt BS, MA, CDPE, CDRS,
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.
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
x
x?
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?
-
1
-
2
of 2 Next