We're currently working on a short sale where PennyMac is the servicer and USDA is the investor. PennyMac relayed their appraised value and the required minimum net needed for approval. We submitted an offer that exceeded the minimum net required, but the USDA still denied the short sale stating that the appraisal listed 113k in repairs needed to the property. Their official denial was that it was denied due to excessive repairs needed. This is also an estate deal so the seller is a representative of the estate and has never lived in the property.
Has anyone had any luck getting around this/ disputing this? The appraisal and subsequent offer are reflective of the true as is value so it doesn't make sense why they would deny the short sale. Any recommendations are greatly appreciated!
Tags:
They likely want to have a insurance claim made. They can also have the bpo amended or adjusted. I believe its anything over 100k. Maybe do your own with less. I have been finding A LOT recently the investors just want the house and make excuses. This is an odd case. This is one of the rare cases you may need to dispute a bpo for being too much in your favor. On the positive note I have had a few of these and all ended up in approval. Stay persistent. Talk to higher ups. Do not give up!
Thank you for the response! We've had this happen to a few with PHH as the servicer and HUD as the investor - very frustrating. We'll try what you suggested - thanks again!
You can request a variance from HUD on an FHA. I have had much success with variances. I would imagine USDA has a similar process (although I have never had to try with USDA to confirm). Someone correct me if I'm wrong. Would love to know for sure.
Hi Minna, we've done this on HUD files, but never USDA. We just emailed the lender to see if that's an option. I'll let you know how it goes. Thank you!
It worked!!!!! Thank you for the tip :)
Great job! Another one down!
© 2023 Created by Brett Goldsmith.
Powered by
Short Sale Superstars, LLC and www.ShortSaleSuperstars.com does not endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. Short Sale Superstars, LLC takes no responsibility for the content on these pages that are written by the members of this community.