Low appraisal stops approved short sale in its tracks!

[HockeyDadof2]

Conratulations.

Originally Posted by meggie78

The short sale has been approved at the new price. I'm getting this amazing house for $20,000 less than I had originally agreed to pay. Closing is scheduled for Wednesday. =)

[HockeyDadof2]

And sometimes agents give their clients **** poor advice... higher price means higher commision you know.

Originally Posted by FalconheadWest

Your agent and/or your mortgage person should be telling you what your options are. The most common option is an appraisal review/audit. The seller's and buyer's agents are both allowed to submit sold comparables to the lender for consideration, and then the information is sent to the appraiser and he/she is asked to look at the information and reconsider their appraisal. Many appraisers are from out of town, or they just don't get it. You can also pay for a second appraisal from a completely different person.

More than likely, this is just a bad appraisal. To be at $105k as a short sale and the appraisal coming in even $20k lower than that doesn't make sense. Get a new one.

[meggie78]

I closed and got the keys on Friday. I can definitely say it was worth the wait, but short sales aren't for people who are on deadlines. The uncertainty really, really sucks. In the end, though, I got an amazing house for an incredible price. Good luck to everyone else who is dealing with short sales - I hope all of your deals work out!

[aneftp]

Originally Posted by HockeyDadof2

And sometimes agents give their clients **** poor advice... higher price means higher commision you know.

You gotta realize 3% commission of $100K is $3000 and 3% of 80K is $2400. $600 difference is nothing in the overall scheme of things to many people who work on commission. They'd take the $2400 anytime of the week for a guaranteed sale.

Like the OP mentioned, they got an incredible deal on a HAFA (key word being HAFA cause USA taxpayers are forking over the kickback money to the banks and even the sellers get kickbacks to move out). Everyone gets a deal in a HAFA sale except the US Taxpayer. Go figure.

Just remember that even though the final selling price of the home is $80K as opposed to $100K. The banks are still getting their money one way or another. For all purposes, the banks probably is getting close to their entire $100K net that they wanted all along. All the money is just getting funneled through freddie/fannie or other government agency losses. The US govt does not count Fannie/Freddie as part of the overall US budget.

To the OP, congrats for getting a great deal. Like I've posted many times over and over again, especially in my home state of Florida. Many short sells are going for 10-20% less than foreclosures these days. If you are willing to wait, and jump all over a short sell, than those are the best deals these days.