Buyers appraisal came in well below contract price and bank SPO approval...

First lien holder is Wells Fargo, offer was $175,000, Wells countered at $205,000.  We disputed their BPO and eventually Wells caved and accepted the $175,000 offer.  Now the buyers appraisal just came in and it is significantly below the contract price of $175,000...which of course is a problem.

Has anyone ever seen this occur and if so, had any luck getting the approval adjusted to appraised value?  It is hard to imagine in all my deals I have not ever incountered this but I guess there is a first for everything.

I guess I am going to submit to the Wells negotiator and see what happens but if anyone has encountered this and can share some insight it would be much appreciated.

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Permalink Reply by Holly B. Long on February 28, 2012 at 9:12am

I just went through this with a GMAC property where our approval was for an offer $10K higher than the buyers lenders appraisal.  Submitted a copy of the buyers lenders appraisal to GMAC and they accepted and lowered the value --issued us a new approval letter.

Permalink Reply by Sam on February 28, 2012 at 9:20am

Thanks for the feedback Holly, much appreciated.  I know Wells Fargo and GMAC are different animals, but do you remember about how long the process took for them to reveiw the appraisal and adjust?

Permalink Reply by Holly B. Long on February 28, 2012 at 11:09am

I submitted the buyers appraisal, HUD showing the net with the lower price and an addendum to contract lowering price..all this was submitted Feb 2 and I had the new approval letter on Feb 22

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