Bank of America / Fannie Mae - Approval at 194K and buyer's appraisal came in at 174K... now what??

We have been working this file for almost a year and kept having problems with the BPO. We finally found a buyer to accept the banks ridiculous counter and we received the approval at 194K. Then the buyer's appraisal came in at 170K which is the value I have been saying all along. We have now submitted an addendum with the price showing as 170K along with the appraisal. It has been with Bank of America for 30+ days now. They keep saying the investor has to review and decide if they will accept the counter. Any ideas on how to get this done quicker???

Is it best to sit and wait or to let the negotiator have it?!? I am so frustrated, we have been trying to tell this this is the value for a year. Any thoughts???

Has anyone had any luck with getting them to send a revised approval?

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Replies to This Discussion

Curious - who was there when the BPO was done? Did you leave the lockbox on so there was access without your knowledge?

FMV - Fair Market Value - is determined by what a bank will lend, not what a bank will lose. You have to escalate with the origination appraisal and reiterate that this is what a bank will lend. It will take some perseverance but usually B of A will go with the buyer's lender appraisal.

OR - close the file and start fresh...make sure there is not a FC sale date in the near future.

I was the BPO was done with comps in hand and made sure the agent was very aware of all the problems with the house. (Garage roof falling in, cracks throughout several walls (home is only 6 years old, missing flooring in 40% of the house). I was so appalled by how novice the BPO agent was. She had no clue about short sales! It was so frustrating. 

Absolutely on FMV! Foreclosure date was 7/29, but as of today it has been removed... but my seller is absolutely OVER the process. So I don't think she has it in her to start the file over. 

I would escalate through the BofA Twitter escalation team. @BofA_Help.  They are very responsive. Follow them and tweet the general situation. They will follow you back and then send you a DM.

Thanks! I will try that right now. 

Just tweeted... :) We will see! 

Anything from the Twitter team?

I have not had Bank of America reject any appraisal, unlike other banks. Often when banks give you a sales price, it has little to do with fair market value, even if they say it does; it doesn't. It has to do with how much they need to net. (I've had problems with both Chase and Citimortgage and revised approvals based on appraisals.) Sometimes that net is market, sometimes it is not. I have a Citi short sale right now in which the appraisal came in $5,500 low and the bank says if the buyer wants to buy it, she needs to pony up the $5500.

The Tweet should unstick this stuck short sale and I'm betting you get the revised approval.

[Elizabeth, I have had BofA reject several appraisals - enough that my client agents don't bother to do them anymore (at $400 each!).]

BofA has "interesting" rules for a dispute like this. The many things that you would normally do can get your dispute thrown out. Personally, every time (none for the last 6 mo) I had a buyer's bank come back saying that they will not lend at that high number, BofA buckled - not even an issue - they don't trust people - we are all cheating scum, but another bank? Sure, they are one of **us**.. ;-)

So, I recommend that you ask your negotiator/closing officer for the rules or form for a value dispute. If it is BofA's own Landsafe, it has rules like "Do not submit an Appraisal or BPO" "Do not submit any analysis that points to a specific value or value range" "Do not provide a conclusion to a specific value.. or Sales Comparison grid.." Aren't you trying to compare your property to reality and their high-as-the-moon number? Well, don't or it will be thrown out..

Since they haven't gotten back to you, ask for the official value dispute and stay on their case to get back to you - sometimes that seems to be helpful in them getting back to you before you retire.

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