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I am the buyer and the PMI wants a copy of my appraisal??

Posted by Ashley Hoffman on April 27, 2011 at 11:38am in Short Sale Discussions

I put in an offer on a short sale on February 28, 2011. The offer was approved by the seller as well as by Chase bank. On April 8, 2011 the file was sent to the PMI company for final decision.

 

As of today, the PMI company has asked for a copy of my appraisal in order to finish their review of the file.

 

My realtor stated that she has never encountered this before. Does anyone know what this may mean?

 

The PMI company approved this short sale in November 2010 (for a very similar price) with another buyer. The sale fell through due to a buyer contingency...

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Replies

  • Vanessa Calhoun April 27, 2011 at 2:22pm
    The short sale is really between the seller and the lender. At no point is the MI company privy to YOUR appraisal as it is between you and your lender. If the MI company wants an appraisal, then they should order one. If it's $30,000 over the contractual price, then you'd best believe that they will review YOUR appraisal and use it against you.
  • Ashley Hoffman April 27, 2011 at 1:48pm

    Thanks Steve,

     

    I was thinking that they are probably going to counter-offer too. The house appraised at 30K over the asking price. What really confuses me though is the fact that the PMI company approved the same house for short sale a few months ago, with the sale price very nearly the same...

     

    I am expecting a counter offer at this point...

     

    Thanks again! :)

  • Steve Early April 27, 2011 at 1:42pm

    Hi Ashley:

    I'm thinking that the MI company is trying to assure themselves that you are paying a "fair price" for the short sale. If your offer was at $200,000 and the appraisal you got came back at $225,000 this tells them that you're getting a really good deal and they may ask for more money. I have to admit that I have never seen this either (and we have done a lot of short sales) and am surprised to some extent that they are not simply using the valuations that the loan servicer presented to them and the investor.

    I think if your appraised value is close to what you paid there isn't a lot of risk to sharing it with them, but I'm questioning what makes them think you are obligated to share that information with them at all! They are, to some extent, your enemy. You paid for the appraisal. It is yours. I'm only half joking when I say that maybe you should tell them they can have a copy for what you paid to have it done.

    Steve

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