Oh, got ya - FHA is the buyer, not the investor. Well, you want to send the appraisal to the closing officer and tell him that FHA will not let your buyer pay what they want - he is not approved for that much, only $105K - please adjust the approval to the appraised value.
It should be easier than going through equator - the idiots barely know how to use it and it is not set to do changes or fixes, yet, I was able to do it there w/o restarting the short sale. Outside of equator, it should be a lot easier - a lot sloppier.
Those are the facts, just tell 'em. Here is the appraisal, FHA won't let buyer pay more, property isn't worth what BofA wants, we need to correct it. Sales price MUST be no more than $105K.
I keep thinking of putting in "or", but probably shouldn't - everyone knows "or what" and giving an alternative here could be detrimental (they may have something else equally acceptable to propose and there is no reason to disclude it or mentally forcing the closer to make a (drastic) choice of do it or kill it). But, I keep trying to put that "or we need to kill the deal" or some such.. Nope, no need, it is obvious and don't want to be pushy unnecessarily.
In fact, it usually helps to give a, "Oh, we have a problem, it is only appraised at $105K, buyer is not allowed to pay more, what can we do? Any help is greatly appreciated." - Well, same thing said, but now the closer has been asked to help - same choice(s), however... right?
I guess you need to say what the problem is? BPO is $105K, they should expect something between 80% and 95% of that and you have a $110K sales price. I can only guess that the issue is that your net doesn't cut it, but you didn't say what that is or if that is the issue.
Is the BPO absurdly high? Your only recourse is to wait for the BPO to die (I think that is 90 days for FHA, too) or get your own official appraisal - not CMA - so far as they are concerned, all agents are liars.
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