Just got a low appraisal on our dream home. (short sales, foreclosures) - Phoenix area - Arizona (AZ) - City-Data Forum

Rick Lee · 03-23-2010, 11:42 AM

This really sucks. Appraisal came in at $12k under contract price. It's already a short sale and bank tried to get the sellers to come up with more cash at the table. Contract price is $344k and it seems to be the bank's rock bottom price. I don't think they're gonna come down another $12k. Though the house was on the market for 111 days with no other offers. So maybe they'll come to their senses and understand they can close this deal now or start all over and sit on the house for months or years until it's worth what they want for it. I can't pay the difference in cash, as I got hit with a huge tax bill the other day. How reasonable are banks on this kind of stuff?

Grannysroost · 03-23-2010, 12:13 PM

I would think it would be advantageous for these banks with so many short sales and foreclosures to have an appraisal done before an offer to have some idea where they stand, as well as everyone else involved.

adolpho · 03-23-2010, 12:42 PM

smoke and mirrors....................I wouldn't waste one minute with a short sale.

Rick Lee · 03-23-2010, 12:46 PM

Well, the short sale was approved relatively quickly, less than four mos. And we had no faith that it was ever going to happen. So we had moved on emotionally and were close to nailing down another one when we got word that the one we wanted most was ready to go. The low appraisal is not a function of it also being a short sale. Totally unrelated. It's just that the bank is already taking a bath on it and so will likely not budge on price. But it'd be the same if this house becomes an REO. Ain't gonna make the value go up and ain't gonna lower the required lender net.

altus2006 · 03-23-2010, 01:13 PM

If I really wanted the house, I would counter the offer at appraisal price and put a time limit on the offer.

If the bank doesn't respond timely, I would find another house. There are too many properties out there to go nuts over one like this.

gmi

rjrcm · 03-23-2010, 04:21 PM

Quote:

Originally Posted by altus2006

If I really wanted the house, I would counter the offer at appraisal price and put a time limit on the offer.

If the bank doesn't respond timely, I would find another house. There are too many properties out there to go nuts over one like this.

gmi

Agree. You should at least give it a try. Also keep watch on your appraisal contingency time frame. Either counter or cancel before it expires. Have not dealt with this on a short sale, but did get them to drop price to match on REOs.

MarianR · 03-23-2010, 04:34 PM

What is the tax appraisal on the house?

rjrcm · 03-23-2010, 05:44 PM

Quote:

Originally Posted by MarianR

What is the tax appraisal on the house?

Just curious, why do you ask? The OP has a current loan appraisal to base discussions. The tax appraisal is not relevant.

Zathras · 03-23-2010, 05:48 PM

Quote:

Originally Posted by Rick Lee

This really sucks. Appraisal came in at $12k under contract price. It's already a short sale and bank tried to get the sellers to come up with more cash at the table. Contract price is $344k and it seems to be the bank's rock bottom price. I don't think they're gonna come down another $12k. Though the house was on the market for 111 days with no other offers. So maybe they'll come to their senses and understand they can close this deal now or start all over and sit on the house for months or years until it's worth what they want for it. I can't pay the difference in cash, as I got hit with a huge tax bill the other day. How reasonable are banks on this kind of stuff?

I think a lot depends on which bank. We are dealing with PNC holding a 2nd on ours and they are not willing to approve without the sellers ponying up a boatload of cash. I think it's a goner and they'll let it go to auction. Other banks I've read about appear to be more lenient. We've done a lot of googling on this subject in the past month.

intmd8r · 03-23-2010, 06:15 PM

Quote:

Originally Posted by Zathras

I think a lot depends on which bank. We are dealing with PNC holding a 2nd on ours and they are not willing to approve without the sellers ponying up a boatload of cash. I think it's a goner and they'll let it go to auction. Other banks I've read about appear to be more lenient. We've done a lot of googling on this subject in the past month.

Which to me is just CRAZY for a 2nd. If it goes to auction, they get NOTHING!