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Old 06-11-2009, 07:22 PM
 
Location: Indian Trail, NC
314 posts, read 1,071,425 times
Reputation: 130

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Quote:
Originally Posted by johne482 View Post
I like your style of research. :>

Here here. Nicely done.
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Old 06-11-2009, 07:27 PM
 
50 posts, read 128,001 times
Reputation: 36
Quote:
Quote:
Originally Posted by finallyhere
I don't think FHA offers 100% financing. I believe the minimum down is 3%. So, they wouldn't be able to purchase your home for more than $463,500. Either they come up with $11,500 on their own, you lower the selling price, or the deal's off. =( Sorry you are having trouble, but I think you'd still be lucky to get 98% of your asking price in this market.

Thank you for the reply. They are paying the 3%. No issue there. Gave us a $15,000 non refundable deposit. Up to today everything was a go for Monday at $475K. The 2nd appraisal report came in today at $450K. That's why we're upset.
I understand why you are upset. My response is still applicable. If the house is most recently appraised at $450,00, all a lender will finance is $450,000. So, If the buyer is contributing 3%, $463,500 is the most you can get for the home. I seriously doubt you'll be able to argue due to the govt backed loan. There will be 3 choices. 1) The buyer comes up with an additional $11,500 cash. 2) You lower the sales price to $463,500. 3) The sale is called off.

Quote:
the letter from their lender states "The above mentioned purchaser has been APPROVED BY AUTOMATED UNDERWRITING up to a purchase price of $475,000 with 3.5% Down under 30 Year FHA Fixed Rate Mortgage
That sounds like a standard pre-approval letter, which are not specific to a certain home. If it was, it would state the address of the property.

Quote:
The $15K deposit was a personal check from them.
Earnest money IS refundable under certain circumstances.

Do you have a copy of the Purchase And Sale Agreement? All these details will be covered in that document.

And again, you should feel very luck even if you get $463,500 for your home. It;s still a solid number based on your asking price.

Good Luck!
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Old 06-12-2009, 05:50 AM
 
4,010 posts, read 9,461,711 times
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Agreed. Something does not sound quite right about this deal. I supposed people do foolish things for absolutely having to have something, but I would guess that if the loan is denied, you are going to be faced with issues if you try to keep the $15K. I simply can't fathom a real estate agent who would write up an offer without a financing contigency in it.
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Old 06-12-2009, 06:04 AM
 
Location: Greensboro to Belgium to Michigan to Charlotte
109 posts, read 321,563 times
Reputation: 49
Dukesmom -

This may make you feel better. We moved to Charlotte in November. Had to move for job reasons, but are from the area and were thrilled to move back. We paid $355k for our home in Michigan in 2006. In 2008, when we moved, it sold for $250k. Yes, $105k loss. We even had a relocation deal where the company would buy our house, but the "6 month forecast" appraisals that the relo offer was based on was $235k. There were 9 comps in our Michigan neighborhood, all were foreclosures with short sales except for 1.

Be happy you're moving from Maryland and not Michigan. In this climate, your doing well with what you have :-)
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Old 06-12-2009, 01:22 PM
 
1,039 posts, read 2,806,667 times
Reputation: 482
Quote:
Originally Posted by finallyhere View Post
I understand why you are upset. My response is still applicable. If the house is most recently appraised at $450,00, all a lender will finance is $450,000. So, If the buyer is contributing 3%, $463,500 is the most you can get for the home. I seriously doubt you'll be able to argue due to the govt backed loan. There will be 3 choices. 1) The buyer comes up with an additional $11,500 cash. 2) You lower the sales price to $463,500. 3) The sale is called off.



That sounds like a standard pre-approval letter, which are not specific to a certain home. If it was, it would state the address of the property.



Earnest money IS refundable under certain circumstances.

Do you have a copy of the Purchase And Sale Agreement? All these details will be covered in that document.

And again, you should feel very luck even if you get $463,500 for your home. It;s still a solid number based on your asking price.

Good Luck!

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.
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Old 06-12-2009, 02:51 PM
 
169 posts, read 437,926 times
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I so appreciate all your help. I know there are worst situations and my heart goes out to you. It's a tough pill to swallow. Right now we are sitting in an empty house (movers came today - stuff is going to storage) and heard from our agent that the lender has sent the two appraisals to FHA to make a determination on the appraised price. It is out of our hands. We don't even have the opportunity to take the lower appraisal in order to settle on Monday. The lender has requested an extension to close by the end of the month. We and the buyers are signing off on a one week delay which will cut close to our settlement in Union County. We are soooooo tired and are now just hoping we'll be enjoying life in the beautiful countryside south of Charlotte soon.
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Old 06-12-2009, 09:00 PM
 
1,343 posts, read 3,098,442 times
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good lord! FHA only requires 3.5% down?? Isn't how this whole housing mess got started? People buying houses for more than market value? Did the buyers ask for any help with closing costs?
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Old 06-13-2009, 04:56 AM
 
7,126 posts, read 10,566,815 times
Reputation: 2587
Quote:
Originally Posted by XcapefromNJ View Post
good lord! FHA only requires 3.5% down?? Isn't how this whole housing mess got started? People buying houses for more than market value? Did the buyers ask for any help with closing costs?
People that buy with 3.5% down ALWAYS ask for closing costs. LOL.
In addition, there are programs/ways for them to fill in the 3.5% down that they are missing. For lower priced homes nothing has changed IMHO, in fact, I think it might be a tad easier( $8K ).
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Old 06-13-2009, 05:07 AM
 
169 posts, read 437,926 times
Reputation: 78
Nope, the buyers didn't ask for help with closing, or cash back. If you go by the first appraisal it isn't over market value.
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Old 06-13-2009, 07:14 AM
 
160 posts, read 374,057 times
Reputation: 104
I'm an appraiser in NC. The % difference between 450k and 475k is only about 5%, 5% is well within the range of what you'd expect 2 opinions of value to be. Look at the % when you look at appraisals, not the dollar amount. I would never expect 2 appraisals to come in at the same value.

Why do you suspect the higher apprpaisal was the "correct" one? There's a reason they ordered the 2nd appraisal, maybe that's what they always do, but maybe the bank didn't like something they saw with the first one. IMO, banks should get 2 appraisals on every loan.

I've never spent 1.5 hours at an fha appraisal inspection. Of course, I've never spent only 10 min either.

I don't think the difference is that much. If you want to move to NC, I'd just start negotiating with the buyer/agent and see if you can come up with something. Worst case is you sell for 450k, which is only 5% less than your asking price. You could get them to pay out of pocket, but as they are going FHA, they probably have nothing more to put down. Which makes me wonder why they are getting into a 475k house to begin with, but that's none of my business.

If you told me the 2nd appraisal came in at 400k, then I could see your issue with the difference. But 5% is pretty normal between appraisals. I don't know about the market in MD, but IMO, be glad you have a buyer and don't let them walk. I know enough people that passed on an offer because they took it personal and 6 months later they accepted an offer a good bit lower than they one they turned down 6 months prior.
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