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

Posted by Sam on February 28, 2012 at 8:34am in Short Sale Discussions

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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Replies

  • Holly B. Long 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.

    • Sam > Holly B. Long 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?

      • Holly B. Long > Sam 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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