What does Fannie Mae do if the house doesn't appraise? (appraisal, foreclose)

[househunting523]

I'm waiting for an appraisal and just wondered what they typically do if this happens.

[Mmiller741]

If you mean, the house appraises higher than your offer, then you pay the difference.

[victor1390]

Originally Posted by Mmiller741

If you mean, the house appraises higher than your offer, then you pay the difference.

I dont think that's true.. i just bought a fannie mae property , the appraisal came 10k over the purchase price.. i did not pay the diference.

[davecj]

Originally Posted by Mmiller741

If you mean, the house appraises higher than your offer, then you pay the difference.

Then every appraisal would come back at exactly the sales price...

With Homepath properties, the appraisal doesn't necessarily matter to the lender since Homepath is the lender.

[Mmiller741]

Oopps! I meant if the house appraises lower than the offer.

Our appraised at 330K, we offered 332K. Our lender said he was going to fight the appraisal, if they didn't change it, then we would have to come up with the 2000.

Sorry for the confusion.

[MrBitterness]

I would first try to negotiate the $2,000 with the seller. Explain you cannot get a loan approval for more than the house is worth and explain in this market that the seller should be thrilled to get full value for their home.

[househunting523]

Yes I meant if the house appraises for less than what I offered. How does this work because I'm doing a 203k streamline loan so in addition to the asking price I'm getting an additional $20k.

Originally Posted by davecj

With Homepath properties, the appraisal doesn't necessarily matter to the lender since Homepath is the lender.

How does the appraisal not matter? I thought banks don't like to offer on houses that appraise for less than what the offer is.

[davecj]

Buyer purchases a home with an FHA loan then forecloses.

FHA now owns the property.

FHA is the lender backed by the government.

For regular sales you're correct. With FHA and Homepath they already own it anyway.

[Zippyman]

Originally Posted by househunting523

Yes I meant if the house appraises for less than what I offered. How does this work because I'm doing a 203k streamline loan so in addition to the asking price I'm getting an additional $20k.



How does the appraisal not matter? I thought banks don't like to offer on houses that appraise for less than what the offer is.

If you buy a homepath home using homepath financing an appraisal isn't *allowed*. It's in the fine print - they don't want to know what the appraisal says..

[us2add3]

I too am going through my own home appraisal and was wondering the same question. I believe our home will appraise, but who knows..?

As I mentioned on a previous posting... Very stressful time..