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B of A Short sale and USDA will not take Appraised value

Posted by Gary Horton on May 8, 2012 at 2:43am in Short Sale Discussions

I have a short sale that I have been working on for 6 months with B of A.  We are to close on the 15 and the lender USDA would not take the value that the appraisal came in at. There is a swimming pool that has a value of $5000.00 and USDA said they will not take that

 

So I have an appraisal that is at value that I need now to talk with B of A about that the lender will not take the appraised value.  Has anyone else had to do this one.  Any help would be great.  I have not sent anything B of A as of yet.

 

Thank you

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Replies

  • Jeff Payne May 9, 2012 at 2:37am

    USDA loans on homes with pools can be tricky, USDA essentially will not loan on the value of the pool, the home needs to appraise without the pool.   it is very important that the appraiser understand that they are appraising for a USDA loan if there is a pool, otherwise it can screw the deal up

  • Jim Schneider May 8, 2012 at 6:08am
    Gary, so the buyer is going USDA, the seller's loan is serviced by BofA, and the buyer's appraisal came in short of what BofA wants, correct?

    I would send a copy of the buyer's appraisal to BofA along with a letter from the byuyer's lender that the buyer won't get the loan at this price. That should be all you need.
    • Gary Horton > Jim Schneider May 8, 2012 at 6:20am

      the appraisal came in 2000 over the approved price. They gave $5000 value for the in the ground pool which UDSA will not allow.  So I have an appraisal above the approved price but the buyers lender will not take that value.  

       

      I think we have the buyers coming in with $3000 to I will not have to go back to B of A

       

  • Wendy Rulnick May 8, 2012 at 6:04am

    Gary - To clarify, the buyer's lender appraised the property for less or?  You can challenge the appraisal now by going through Bank of America's new procedure... here is the link. https://realestateagent.bankofamerica.com/ptff.aspx?p=293

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