Hi there!
The short sale home I'm trying to buy was approved by Ocwen in the beginning of the month through the HAFA short sale program. The approved price, which was on the purchase agreement, was $90,000. My loan went through underwriting, and we were all set to go with the exception of the FHA appraisal. It came back the other day at just $70,000.
The appraisal has been forwarded to the seller's agent, and I guess it will then be sent to Ocwen. We are hoping they will agree to the $70,000 price.
What I'd like to know is how likely this will be? I know no one can predict the future, but do short sale lenders often come down on the price in these situations? This is an approved short sale, and it expires in about 30 days. The comps that were used in the appraisal are good, but the majority of what was available were short sales and foreclosures. Out of 20 properties that sold recently, 15 fell into that category.
Thanks for your insight!
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Lenders do on occasion reduce the price to meet the appraisal. FHA should have used regular sales as comps if there were some available to use. In fact it's my understanding that they MUST use at least 2.
A 30% difference between contract price and appraisal is pretty large gap to close.
I hope it works out for you.
Thanks Bryant! After having the value dispute and appraisal for about 2 weeks, the short sale bank asked for an updated preapproval letter with the new, lower price and for an addendum to the purchase agreement with the new price. The addendum says we will close on 9/24 if approval is received by 9/17. I sure hope this means we're going to get approved!