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.
Replies
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.
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?
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