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Old 06-13-2009, 07:47 AM
 
Location: Huntersville
1,852 posts, read 4,665,382 times
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Quote:
Originally Posted by dukesmom View Post
Thank you serovich for sharing that with us. So......we're not the only ones. Like you, the wheels are in motion. The movers come in two days, settlement is in 5 days. We're coming from Maryland and have a contract on a house in Indian Trail with settlement there scheduled in 15 days. How do you stop that kind of train? We'll be taking a $25K loss. We love the area, hopefully we'll love it $25K worth. Where in Indian Trail do you live? We will be living in the Sheridan community.
Good luck, I am am interested in the outcome and I hope it's a good one. So I am thinking in my crazy math if they go with the $450,000, and they put $15,000 down... KEY to me is this the down payment or earnest money, not always the same thing, such as I put $2000 in earnest money, but when I closed my loan I had 25% down? If that is the downpayment, then they should be able to pay $456,500 and maybe they can put more cash into it.

My sister had this issue and they ended up all contributing to compelte the sale. I.E. My sister lowered the price, the buyers put in some more cash and I believe the realotrs also took less comission. It would have cost everyone more to NOT complete the sale.
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Old 06-13-2009, 09:12 AM
 
169 posts, read 411,522 times
Reputation: 77
Believe me I know we're fortunate to have a buyer and to have sold so quickly. I guess our problem is that until five days before closing we thought everything was a go at $475. When the second appraiser was here for only 10 minutes I thought it was just to rubber stamp the first one. By that time we had a contract on a house in Indian Trail, scheduled movers and mail forwarding, cancelled papers, phones and the security system, had almost everything we own in boxes, said our goodbyes to friends and were eating what was left in the fridge and pantry. We felt duped! The movers came yesterday and now settlement is delayed at least a week. It's been turned over to FHA to decide which appraisal to use. At this point we just want out of here. We're ready to go. Whatever FHA determines we'll go with. After we settle and move down there we'll address the issues of the second appraiser and the lender who hired them. Maybe talk to an attorney, at least notify FHA, Maryland State's Attorney's office and HUD with the issues of him/her not being licensed and having a substantial record of convicted violations. I wouldn't hire someone to work in my house who broke the law as many times as he/she did. I resent the lender sending them without checking their credentials. Anyway, thank you all again for your replies. I will definitely let you know the outcome. Hope to hear something soon.
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Old 06-13-2009, 10:26 AM
 
160 posts, read 357,666 times
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I do understand your frustration. Appraisers can be either licensed or certified. In fact, a certified appraiser is more widely recognized than a licensed. We might be dealing in semantics, but the 2nd appraiser may be certified.

I am 100% sure that he is not eligible to be an fha appraiser unless he holds a current/valid certification. https://entp.hud.gov/idapp/html/apprlook.cfm this is the hud website where you can search all appraisers eligible to do fha appraisals. If you have a copy of the appraiser, you can search by his/her last name. YOu can also search by the license/cert number, but you have to add the state abbrev. before the certification # (If the license if A1234, you need to search MDA1234). If he isn't on this list, the fha won't accept his report.
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Old 06-13-2009, 11:12 AM
 
169 posts, read 411,522 times
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Thanks so much for sending the link, cagman. I did find him/her on the list. It indicates he/she is licensed to 6/10/09 [SIZE=-1]and is "In 30-Day Grace Period
Valid until 07-10-2009". Do you know what this means? Maybe they are in the process of renewing the license? The first appraiser is on there too as licensed to 7/22/09.
[/SIZE]
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Old 06-13-2009, 12:40 PM
 
160 posts, read 357,666 times
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Most (all?) state certifications expire on a 1 or 2 yr cycle. I'm certified in both NC and FL. FL certifications must be renewed every 2 yrs (11/30/10 is when all active certifications expire) and NC is every year (6/30/09 is when they expire).

I believe FHA gives a 10 day grace period to update in their system. But if they are in the same state, the renewal dates should be the same. Unless MD does things differently than other states - which is possible.

You can also check MD state appraisal board -not sure what the website is. It should allow you to search for the appraisers there too. I don't want to give you bad info, cause I'm not sure how MD does things.
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Old 06-13-2009, 12:48 PM
 
204 posts, read 571,618 times
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It's not a scam! Banks have apparently learned their lesson and will not lend out more than what the home is worth. They establish that apparently by using the lower of two appraisals. 3.5% down is still ridiculously low and what led to the housing bubble in the first place. Didn't at one point in time a buyer would have to have 20% down?
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Old 06-13-2009, 02:22 PM
 
50 posts, read 121,622 times
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Quote:
Please correct me if I am wrong but the appraised price and the selling price must correlate more than the appraised price and the financed price. Basically if you sell your home for $200K then the comparables must come back that your home is worth $200K. My understanding is not that you can sell your home for $250K have it appraised at $200K and as long as they put down $50K you can get financing. There might be some wiggle room between selling price and appraised price but not several thousand.
Nope, a person can pay whatever they want to for a home. When it comes to cash, you don't even need an appraisal to purchase. You could live in a $150,000 home and have someone purchase it from you for $1,500,000 if they felt so inclined.
A lender, however, is not going to loan you more than the appraised value because they want to be able to recover their money if you default. They don't give a hoot how much cash you contribute (as long as it meets the minimum down percentage as set forth in your loan agreement). If the home is appraised at $450,000 and you are approved for at least $450,000, they'll give you up to $450,000. Anything more you contibute is just a bigger down payment.

To the OP, again, my heart aches for you. I know you are in a horribly stressful situation. Hang in there! You haven't been duped. It's just how things go with financing. Everything can change overnight. The deal is never done until all parties sign the final papers. I hate those home sale shows wher the realtor pronounces "you bought a house" just because purchase and sale terms are agreed upon. That's only the beginning...
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Old 06-13-2009, 02:32 PM
 
1,039 posts, read 2,665,440 times
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Quote:
Originally Posted by finallyhere View Post
Nope, a person can pay whatever they want to for a home. When it comes to cash, you don't even need an appraisal to purchase. You could live in a $150,000 home and have someone purchase it from you for $1,500,000 if they felt so inclined.
A lender, however, is not going to loan you more than the appraised value because they want to be able to recover their money if you default. They don't give a hoot how much cash you contribute (as long as it meets the minimum down percentage as set forth in your loan agreement). If the home is appraised at $450,000 and you are approved for at least $450,000, they'll give you up to $450,000. Anything more you contibute is just a bigger down payment.

To the OP, again, my heart aches for you. I know you are in a horribly stressful situation. Hang in there! You haven't been duped. It's just how things go with financing. Everything can change overnight. The deal is never done until all parties sign the final papers. I hate those home sale shows wher the realtor pronounces "you bought a house" just because purchase and sale terms are agreed upon. That's only the beginning...
Still confused and I was a loan officer for a few months. When you plug in the numbers everthing is based off of purchase price. So if you buy a home for 100K then you add aproximately $4000 in closing costs and prepaids then you add in the downpayment, say 10K so out of pocket will be 14K. But it all starts with the purchase price not the amount loaned out. So again when the appraisal comes in it must be at least as much as the purchase price, in this ex. 100K. Maybe I should post this on the Mortgage forum as to not highjack...
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Old 06-13-2009, 02:44 PM
 
204 posts, read 571,618 times
Reputation: 86
Quote:
Originally Posted by gkleoni1 View Post
Still confused and I was a loan officer for a few months. When you plug in the numbers everthing is based off of purchase price. So if you buy a home for 100K then you add aproximately $4000 in closing costs and prepaids then you add in the downpayment, say 10K so out of pocket will be 14K. But it all starts with the purchase price not the amount loaned out. So again when the appraisal comes in it must be at least as much as the purchase price, in this ex. 100K. Maybe I should post this on the Mortgage forum as to not highjack...
In this case, the appraisal came in less than the purchase price...
The bank will not lend out more than the appraised value of 450k, or a little less since no one is doing 100% LTV.
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Old 06-19-2009, 11:39 AM
 
169 posts, read 411,522 times
Reputation: 77
Default Update -

Just wanted to update those of you who were so kind as to provide advice, support and information to us. We heard from our agent, the buyer's lender, and the title company yesterday that FHA decided to honor the first appraisal of $475K and we are scheduled to close here in Maryland on June 24th. Fortunately, we were able to get a contract extension to close on our new house in Indian Trail on June 29th. As far as the second appraiser is concerned, after settlement is complete and closed I will verify and document my research then share it with the Maryland State's Attorney's Office, FHA, and the lender. Thanks again to all of you who took the time to help us.
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