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I'm representing the seller for a short sale with a valid financial hardship.  PNC bank is servicing the loan in first position and there is a small second.  The first loan is insured via FHA.  We had an initial appraisal that came back very high... $100,000.  The home had a value of approximately $75,000 in my opinion.  I listed the house at $100,000 and had no activity.  I reduced the price all the way down to $70,000 before I had any showings at all over a 2 month period.  I had an offer for $70,000 and submitted to the bank and they rejected based on the first appraisal.  My seller paid for a second appraisal which came back at $75,000.  I submitted that back to the bank along with comps and feedback supporting the $100,000 appraisal was too high.  The bank ordered a second appraisal.  I met the appraiser and made sure he had good comps, the feedback and a copy of our $75,000 appraisal.  Seemed like he 'got it' and would provide a good appraisal for us.  Well, his appraisal came back at $90,000 and the bank needed to net $70,200 after expenses.  I needed to clear $86,000 from the sale and that's not going to happen.  Other homes are in much better condition for that price in the same area.

I've been in touch with the Andrew Cianci from the Philladelphia homeownership center in PA and he was not able to help.  I asked for support on getting a 3rd appraisal done.  I've been in touch with the National service center's loss mitigation center and they are not able to help.

Do you have any suggestions?  The issue is I have 2 bad appraisals and the bank is digging in their heals.  Without a third good appraisal, HUD just bought another home that will absolutely sell for somewhere in the $60,000 range now.  Makes no sense.  Thoughts?