BofA-FHA Question

Hi superstars!   FHA short sale...BofA states they are no longer allowed to order 2nd appraisals, after the first one has expired (it was completed over 6 months ago).  Stated they are only allowed to request a variance to extend the ATP.

Of course, the whole issue is the property is over-valued from the start, which is why we are requesting a new appraisal.

Thoughts....

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  • A real estate appraisal that is to be used for bank financing only has a shelf life of 6 months. At 6 months and one day, they are supposed to get a new appraisal. Sometimes banks like to get around this by simply having the appraisal re-certified - but in an appreciating or depreciating market this is very risky.

    Here is a reference from FHA on appraisal expiration: http://www.fha.com/fha_article.cfm?id=258

  • Call FHA and ask them to check on the file for you (you will need the FHA case number).  Just explain to them the issue you have run into and what you have done to resolve it.  They will submit a ticket and check into it for you.  I don't do this often, nor do I do it get negotiators in trouble...only when a file has gone on way too long or I get conflicting information from the servicer OR I feel like my negotiator maybe misinformed.  Generally the file get's past the hiccup very quickly.  

    • I am closing a B of A FHA Short sale this week I started in Jan 2012.  1st appraisal came in at 38k in Feb 2012. Listed at 38k but after 6 months and 2 price drops later, was only able to get a 23k offer. Requested a new appraisal after 6 months, but was told B of A doesn't do more than one appraisal, but I could dispute the value but couldn't use any comps that were short sales or foreclosures. This is a distressed area of STL and there were no regular comps to support my value, only distressed comps. They declined the short sale and closed the file. I was only able to get the file reopened and a new appraisal ordered after I escalated with the dept of HUD/FHA. Second appraisal came in at 28k and I was able to convince the 23k buyer to raise there price to 26,100.00 and I am closing this week. If all else failes, you can try to escalate with HUD by calling 877-622-8525. Get there fax number so you can send them a LOA. The 1st time you call HUD, they will transfer you right back to B of A escalation. Just talk to B of A, get the name and number of the agent at B of A and then call HUD back in a few days and tell them you already spoke to B of A and give them the name of the person you spoke to at B of A. They should open a case for you and assign a case number. Hope this helps.

  • I agree with the previous post.  They will do one after 6 months, you will have to do some paperwork for the dispute with comps, etc;    I had a big variance in value......I  submitted all the supporting paperwork, they ordered the appraisal, I was 3k off, they were 15K.   Do you know what the negotiator was basing their increased market value on?   Trulia and Zillow, that's how the increase was determines after the initial appraisal.  Interesting enough, the same model (very similar condition),1 block down the street had a BPO completed @ $114K also by BOA.  I asked them, " if I was buying either of those homes at what value would you loan money on?    $114K or $129k ?   Can't have it both ways.  So were you wrong the first time or this time?  Then they ordered the appraisal. 

  • Kevin's right. If there's no FC date, let the file die softly and then go back again in 3 months. If there is a FC date then go back with your own appraisal and hit up their twitter team and let the whole world know you're pissed. I heard the same thing from boa last year, and then they ordered another one...please remember the golden rule of short sales: banks never lie, ever.
    • No reason to let it die.  Just push harder for the 2nd Appraisal.  You're speaking to the wrong people.

      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

      • The burden for the accuracy of the Appraisal is laid squarely on the Bank.

  • "BofA states they are no longer allowed to order 2nd appraisals" - Yea I had them tell me that too.  False info.  I just had the third one completed.

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