Need immediate help with value in Brookhaven (second mortgage, bad credit)

[sacbag]

We booked a townhome at Cobblestone at brookhaven in december 07 and contracted. The closing is in 2nd week of july. however at the last minute got a message that the second mortgage for 10% didn't go through. lender is willing to do it with pmi which is very expensive.
What options do I have:
1) can i find another lender willing to underwrite 10%
2) or stick with pmi option.

I am also worried about the appraisal.

What happens if the value of the townhome has fallen since we booked it initially in december 07 and I have not yet closed??????

[Go Blue 99]

Who is your lender? I know Cobblestone is a Centex community...we recently purchased in a different Centex community and used Centex/CTX Mortgage as our lender. They offered us a 95% LTV loan with no PMI. I would definitely contact them and ask for something similar. Unless you have bad credit, you should be able to get the same deal.

[Morriah]

If the appraisel comes in below the contract price, the seller would need to lower the price to the appraised amount or you can terminate the contract. Bottom line, banks will not loan money for a property that does not appraise for the sales price.

[sacbag]

Go Blue, it seems if I pay 5% more. I have a chance of getting rid of the PMI?

[sacbag]

Thanks Morriah, apparently the appraisal has come in around the same as the price, but I have not seen the copy yet. But I think all is good on that front..

[blackrabbit]

Originally Posted by sacbag

We booked a townhome at Cobblestone at brookhaven in december 07 and contracted. The closing is in 2nd week of july. however at the last minute got a message that the second mortgage for 10% didn't go through. lender is willing to do it with pmi which is very expensive.
What options do I have:
1) can i find another lender willing to underwrite 10%
2) or stick with pmi option.

I am also worried about the appraisal.

What happens if the value of the townhome has fallen since we booked it initially in december 07 and I have not yet closed??????

Thats a pretty good value townhome development IMHO. Well priced and a lot less likely to devalue than others further out.