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FHA Short Sale - Citi using Subject to Value for Counter

Posted by Ismael Medina on July 11, 2016 at 1:05am in Short Sale Discussions

Hi Guys,

Running against the clock on this one.  Got an all cash offer on a property that is 1/2 finished.  Owner decided to make repairs and never finished.  Now Citi has an appraisal for $135,000.00 Subject to Repairs and with an estimated cost to cure of about $84,400.00.  We have an all cash offer of $83,000.00 and Citi Comes back with a counter of $112,000.00 (88% of $135k).  When I questioned the negotiator she says her figures are correct.

Has anybody come across this issue in calculation before?  I need help as a Sheriff Sale is Schd for 7/27/2016.

Ismael

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Replies

  • Darren Bell July 19, 2016 at 3:31pm
    Hate to be the bearer of bad news. You are most likely wasting your time on this short sale. Even if you accept the 112K, HUD will most likely deny the variance because the property is not marketable
  • Jonathan Katz July 11, 2016 at 4:49am

    Push to get a new appraisal ordered. If negotiator won't order it, I'd open up a ticket for HUD and try.

    Brett@ishortsalenow.com

    310-564-6389

    www.ishortsalenow.com

    • Ismael Medina > Jonathan Katz July 11, 2016 at 5:08am

      So you think a new appraisal would be the best course of action?

      Cause since the current one gave a Cost to Cure, they would have to go by the appraisers estimation.

      • Jonathan Katz > Ismael Medina July 11, 2016 at 5:29am

        I'm assuming by your offer being Est. 80k and your post that you won't be coming up to the Est. 120k range needed to meet minimum NET per HUD guidelines. If you're not going to be able to NET them 84% as a bare minimum, you should be going a new appraisal route in my opinion.

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