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My first question is "Who in the hell disclosed the appraisal to the seller"? That is an absolute ethical violation. Second, NO, the next lender won't know about the low appraisal, I see people dumping lenders and reapplying because of low appraisals all the time. Third, the first appraisal was no good. Adjustments are generally limited to 10% per line and 25% total. If you have to adjust a comp 60-70%, it's not comparable by definition. Better to expand the search area or go back further in time to find similar comps. Fourth, my experience is that once a lender cuts a value they rarely reinstate it. My suggestion would be to start again with a new lender. If you're working with a Realtor, have them research the appropriate comps and then hand them to the new appraiser. Good luck.
My first question is "Who in the hell disclosed the appraisal to the seller"? That is an absolute ethical violation. Second, NO, the next lender won't know about the low appraisal, I see people dumping lenders and reapplying because of low appraisals all the time. Third, the first appraisal was no good. Adjustments are generally limited to 10% per line and 25% total. If you have to adjust a comp 60-70%, it's not comparable by definition. Better to expand the search area or go back further in time to find similar comps. Fourth, my experience is that once a lender cuts a value they rarely reinstate it. My suggestion would be to start again with a new lender. If you're working with a Realtor, have them research the appropriate comps and then hand them to the new appraiser. Good luck.
Because when the appraisal took 20+ days the seller was getting frustrated. So when it came in , we said he it came in and was sent to UW and we are waiting for the CD. Then they came back with the lower value. So the seller Basically put two and two together that they wouldn’t have sent it to UW unless it appraised.
I got the approval
I got the money
I got the offer accepted
I got the inspection
I got the appraisal
I got all the financial docs
I have literally everything I was asked, everything that is needed, and yet somehow this is going to fall through for no apprentice reason and I’m going to be homeless
OP, a 5 UCDP is the absolute worst rating an appraisal can receive, which is an indicator the approach for value is flawed. What kind of down payment are you providing? With enough down it may not matter. Very little down, it's an issue. You sound as is you are willing to accept the sales ptice without much question. The real problem will be selling or rebuilding in the event of a catestrophic claim be a loss?
If you change lenders, there is little to no chance the appraisal can be used. But that's a good thing. You want to see if the results are the same. A loss of a 2nd $500-$600 appraisal fee is nothing compared to the 1000's you could lose in equity.
OP, a 5 UCDP is the absolute worst rating an appraisal can receive, which is an indicator the approach for value is flawed. What kind of down payment are you providing? With enough down it may not matter. Very little down, it's an issue. You sound as is you are willing to accept the sales ptice without much question. The real problem will be selling or rebuilding in the event of a catestrophic claim be a loss?
If you change lenders, there is little to no chance the appraisal can be used. But that's a good thing. You want to see if the results are the same. A loss of a 2nd $500-$600 appraisal fee is nothing compared to the 1000's you could lose in equity.
thank you. We are putting little down, as I needed to pay off other debts with the proceeds from my last house.
I am going to give options to the seller, 1. Renegotiate to the 124 value of the CDA and let’s get this done. If not, go back to your asking price (I offered them more than asking) and I’ll come up with the difference, or 3. I’ll change lenders (they said already they feel it’s the lender playing games) but I need a 30 day extension and if it’s low again you gotta work with me.
The lender said the comps used were 140, 89, 85, 80. And the amount of adjustments are caused the desktop review from Fannie Freddie. The MLO is a personal friend so I am not sure why he would lie, but they stated the desktop is going to go to any lender and have the same problem. Is that true?
Are there any recent similar sales closer to your sales price? 89k, 85k, 80k don’t seem to support your sales price at all.
Are there any recent similar sales closer to your sales price? 89k, 85k, 80k don’t seem to support your sales price at all.
he had 1 sale that was 140k. Other than that there’s not much inventory in a town of 3k people. The home is def Over improved, but the area is coming around and it’s in the nicer part of of town. There’s just not many sales. If believe in the last year alone there were only about 30 sold homes within 500 sqft of the subject but some of those were estate sales and foreclosures as well.
thank you. We are putting little down, as I needed to pay off other debts with the proceeds from my last house.
I am going to give options to the seller, 1. Renegotiate to the 124 value of the CDA and let’s get this done. If not, go back to your asking price (I offered them more than asking) and I’ll come up with the difference, or 3. I’ll change lenders (they said already they feel it’s the lender playing games) but I need a 30 day extension and if it’s low again you gotta work with me.
Don't go through the anguish of renegotiating value for a 2nd time. I would simply extend the contract and see what the 2nd appraisal brings. Any renogiating now without factual data is a waste of time and puts the seller in the driver's seat. Don't give away your renegotiating power before you know the final value.
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