FHA Short Sale with some strange things - appraisal issues, ATP, incentive

I'm in need of advice on a Chase FHA sale.  I have NO ATP.  The negotiator however is already negotiating the sale from the offer we sent in.  Of course our offer is too low, so we asked for a valuation dispute and variance.  They've asked for 3 comps in 1 mi radius with NO REOs or Short sales however, the market in this particular town is distressed so the that's impossible.  Buyer wants to put in LOWER offer now that inspection was done.  Appraisal was done in October, and house went under contract in December.  Inspection yielded roof needs replacement, faulty pipes, and some other items.  We asked Chase to consider this info and they said No.  They also asked our sellers to give up their $1000 incentive.  I'm at a loss as I feel like I've never run into a sale like this. 

First, what are the guidelines for an official dispute? This is the same stuff Chase asks me for on a regular sale. Next, are they allowed to ask my seller to give up their $1000?  Third, has anyone had them negotiate a sale before an official ATP was issued?????

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Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on January 9, 2013 at 3:48pm

Call me later tomorrow.

864-485-9283

Permalink Reply by Smitty on January 9, 2013 at 4:11pm

Thanks Kevin.  I was hoping you might read this one.  I'll call you tomorrow.

Permalink Reply by Tara Samney on January 9, 2013 at 3:51pm

Hi Smitty, I'll let those more experienced with FHA chime in on the rest- but yes, you can get an offer approved even though you put it in before the official ATP.  I did this on one of my early short sales when I didn't know it was FHA.  It didn't hurt anything. It got reviewed, and I got the ATP slightly before we got the approval in writing. The negotiator had been reviewing it before the ATP was issued.  It went to closing smoothly, so yes you can bring an offer in before the ATP.

Permalink Reply by John Edelman on January 9, 2013 at 4:19pm

Hi Smitty,

 

If you are still running into trouble - I will see if I can help out.

 

Let me know

Permalink Reply by Smitty on January 10, 2013 at 6:53am

Who has the official guidelines to dispute an appraisal?  Either to ask for new appraisal or ask that an adjustment be made for new information in the old appraisal? Kevin, I'll be calling you later today.

Permalink Reply by Kevin - Greenville, SC on January 10, 2013 at 7:15pm

In an effort to ensure that the most current Fair Market Value is used for the Preforeclosure Sale,
a Lender may obtain a new FHA appraisal, even if the property was appraised by an FHA Roster
Appraiser within the preceding 120 days.

http://portal.hud.gov/hudportal/documents/huddoc?id=nscpfsfaq.pdf

Permalink Reply by Anita Sanda on January 22, 2013 at 6:36pm

Contesting/Disputing the appraisal: There are no guidelines. Ask to see the appraisal. Dispute with the appraisal company directly. Provide 5 comparable "like" closed sales, prior to October when the appraisal was completed, to both Chase and the appraisal company.

Are they asking your Sellers to give up the $1000 because they are not eligible? See attached FHA Preforeclosure Guidelines.

I have had a seller negotiate a purchase contract with a Buyer prior to receiving the ATP but the Sellers Lender did not start negotiations with the Seller until the ATP was provided.

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Permalink Reply by Kevin - Greenville, SC on February 7, 2013 at 5:53am

Smitty,

Did you get this resolved?

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