Short sale lender wants agents to pay for an appraisal.

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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Permalink Reply by Natalie Arndt on January 29, 2012 at 5:26am

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,

Permalink Reply by Linda S. Cefalu on January 29, 2012 at 5:28am

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.

Permalink Reply by Ben Benita on January 29, 2012 at 9:53am
We ran into this with one Servicer, Astoria Federal Savings, it was a portfolio loan, and, they REFUSED to proceed without us paying for the $400 appriasal.

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!!!!

;-)
Permalink Reply by Kevin - Greenville, SC on January 29, 2012 at 1:32pm

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?

Permalink Reply by Kevin - Greenville, SC on January 30, 2012 at 9:27am

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!'

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