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Again, this is SOP. When the broker gets turned down by his original lender, he "shops" the package to others until he knows where he can get it funded. In the last 13 months, 210 lenders have gone under or quit doing loans through brokers, so this may be one of several delays, as the problem becomes one of finding a lender if BoA won't take it.
Agreed.
I have started to put wording into listings similar to this: "Offer must include Preapproval to be signed by LENDER indicating credit pull."
It isn't perfect, but holding a client's property off the market while a mortgage broker shops it to lenders stinks.
The buyers first mortgage fell through. The mortgage co. went out of business overnight. We contacted 2 different lawyers who both said the same thing - you are screwed and there is really nothing you can do about it.
They tried for a second mortgage but the appraisal was wrong and the mortgage co. would not correct it or order a new one. I don't know why....maybe because the buyers were high risk and they didn't want to give them the loan in the first place??
Talked to our agent yesterday and told him we were done. We needed to move on from this whole mess. We told him we were parting ways. I felt like he was not upfront with me on alot of things, his lack of communication was not acceptable, and I don't think he stayed on top of things.
So we have an appt. tonight to put our house back up with another realtor. After this whole mess I am going to tell him -
1. Do not bring anyone in unless they have a mortgage commitment. I cannot go through this again.
2. Call me or e-mail me on a weekly basis. Even if there is no activity I want to hear from him.
3. Tell me what he thinks my house will appraise for - not sell for.
Any other suggestions before I hop on this roller coaster ride again?
The buyers first mortgage fell through. The mortgage co. went out of business overnight. We contacted 2 different lawyers who both said the same thing - you are screwed and there is really nothing you can do about it.
They tried for a second mortgage but the appraisal was wrong and the mortgage co. would not correct it or order a new one. I don't know why....maybe because the buyers were high risk and they didn't want to give them the loan in the first place??
Talked to our agent yesterday and told him we were done. We needed to move on from this whole mess. We told him we were parting ways. I felt like he was not upfront with me on alot of things, his lack of communication was not acceptable, and I don't think he stayed on top of things.
So we have an appt. tonight to put our house back up with another realtor. After this whole mess I am going to tell him -
1. Do not bring anyone in unless they have a mortgage commitment. I cannot go through this again.
2. Call me or e-mail me on a weekly basis. Even if there is no activity I want to hear from him.
3. Tell me what he thinks my house will appraise for - not sell for.
Any other suggestions before I hop on this roller coaster ride again?
Thanks!!
Unfortunately, your situation is becoming more and more common....
In regards to #3, you need to know both.
Also, you need to interview multiple agents. Make sure you go with one who has direct knowledge of your neighborhood.
So we have an appt. tonight to put our house back up with another realtor. After this whole mess I am going to tell him -
1. Do not bring anyone in unless they have a mortgage commitment. I cannot go through this again.
2. Call me or e-mail me on a weekly basis. Even if there is no activity I want to hear from him.
3. Tell me what he thinks my house will appraise for - not sell for.
Any other suggestions before I hop on this roller coaster ride again?
Thanks!!
Just make sure that earnest money/deposit is at least 10k.
The buyer getting a mortgage commitment does not mean he will definitely get the mortgage. (Tho it gets rid of some of the riff-raff.) So, if there is a mortgage (financing) contingency in the purchase contract it should expire/removed within 30 days of the offer. Also, you should be free to accept other offers during the contingency.
It might be tough to get all/or any of the above in today's market but you can certainly try.
On the appraisal side you have to look at a value closer to 176K. The REA cannot tell you what the appraisal will come at. He can only guesstimate. And it means nothing in your case. As, it is ultimately the lender' decision to accept/reject the appraisal value. Even if you get a higher appraised value for your property the lender might reject it as it did the last time. Alternately, you might look at somebody who is willing to put a larger down payment for the purchase to overcome the appraisal value problem.
Just make sure that earnest money/deposit is at least 10k.
The buyer getting a mortgage commitment does not mean he will definitely get the mortgage. (Tho it gets rid of some of the riff-raff.) So, if there is a mortgage (financing) contingency in the purchase contract it should expire/removed within 30 days of the offer. Also, you should be free to accept other offers during the contingency.
It might be tough to get all/or any of the above in today's market but you can certainly try.
On the appraisal side you have to look at a value closer to 176K. The REA cannot tell you what the appraisal will come at. He can only guesstimate. And it means nothing in your case. As, it is ultimately the lender' decision to accept/reject the appraisal value. Even if you get a higher appraised value for your property the lender might reject it as it did the last time. Alternately, you might look at somebody who is willing to put a larger down payment for the purchase to overcome the appraisal value problem.
Good Luck, this time around.
No rational buyer is going to accept a contract which removes the financing contingency before closing if there is any possiblity of a problem. That is pretty close to everyone who can't pay cash. And note that it is a buyers market out there.
The REA can and does project accurately where the appraisal will come out. How else would you advise someone where to list? There is no indication in this case that the list price was not compatible with a reasonable appraisal.
A bank actually approves a loan when they fund it. All the earlier stuff is foreplay.
No rational buyer is going to accept a contract which removes the financing contingency before closing if there is any possiblity of a problem. That is pretty close to everyone who can't pay cash. And note that it is a buyers market out there.
Didn't I say the same thing in my post.
Quote:
Originally Posted by ch123
It might be tough to get all/or any of the above in today's market but you can certainly try.
Quote:
Originally Posted by olecapt
The REA can and does project accurately where the appraisal will come out. How else would you advise someone where to list? There is no indication in this case that the list price was not compatible with a reasonable appraisal.
Obviously, the first appraisal wasn't accepted by the lender. That says it all about the REA's.
Quote:
Originally Posted by olecapt
A bank actually approves a loan when they fund it. All the earlier stuff is foreplay.
I agree mostly, except in this case all foreplay and no orgasm.
You are in over your head. A lot of that around here.
Appraisals are routinely done in 3 days. An expedited appraisal can easily be done the same day.
The only rational for a second appraisal is the underwriter is suspicious. 95% of the time it goes away when the new appraisal comes up close to the first appraisal.
Moderator cut: off topic
The rub of course is that it was not a second appraisal. It was in fact a first appraisal on a new mortgage. And it is likely incorrect.
Given incorrect fact situations it is improbable that you will make the correct call. But the post is correct and accurate for the circumstances indicated.
I have had appraisals ordered and turned in within 48 hours of an accepted contract. It takes longer on VA or short sale appraisals. They normally get 3 weeks. An appraisal can be done in a day.
Well CH123...since you felt it necessary to give a negative rep for this post of mine I thought I'd respond publicly to you. I wrote an offer and got it accepted on 12-27-07. The appraisal was completed on 12-31-07. There was weekend in there so that is 2 business. I'd say my post was accurate and I just gave you a real life example.
Addressing some of the other posts of yours:
We have figured out now that the 2nd appraisal was ordered by a new lender because the first went out of business. Not because it was high or low or slow or anything else, though it could have been. The second came in low. Perhaps the market shifted, perhaps it wrong, perhaps it was right. Bottom line, we aren't there, we don't know.
Realtors do know how to guestimate the CMA. A Realtor can be just as good as pricing a home as an appraiser. However, your average appraiser is better and faster than your average Realtor. A bad appraiser is probably still as good as an average Realtor. But Realtors do know how to price a home, we don't just slap a random number and do the three P's (pray/pray/pray) that it sells.
A buyer would be crazy to accept a contract with the financing contingency removed, especially if they are putting 10k down. As a matter of fact, many buyers would balk at being told they had to put down at least 10k earnest money. Good way to not sell a house.
ch123, I'm not gonna give you negative rep back. I'm better than that but I'm not above bringing you out here.
I agree with his statement. I've had appraisals done in just a few days before no problem.
Bottom line is to call your realtor and ask them to find out what's going on. Last time this happened to me it was just that the buyer decided to switch lenders last minute for whatever reason. No problem with the appraisal, just new bank so new appraisal needed.
I thought I was the only one that got a negative rep! I never would have thought the above post would get me my first negative.
c'mon CH, yes it turned out to be a different situation for the OP....I, and many others recommended talking to their own realtor to find out the real situation. But I mean you saying I was PURPOSELY MISLEADING??
The second appraisal could well have been just a buyer shopping banks at the last minute, I was partially right, looks like it was a second bank ordering the appraisal.
Hey guys, I got enough negative rep from you guys when I replied specifically to the OP's situation, as you guys saying I was "purposely misleading". Now that the crows have come to roost and the deal did not happen why you as professionals should not get what you meted out to me for giving "misleading" advice.
To get a second appraisal , especially after the first one got rejected, and that too during X-mas for a closing in 2 weeks was just not going to happen. That is realty. Now, if it was not the holidays and it was 2006 where the appraiser's were in bed with the lender and/or the real estate agents, the settlement would have happened.
Here are some of your positions and "misleading" advice you gave to the OP
Quote:
Originally Posted by VickiR
Call YOUR agent and have her find out for you. Its part of her job. ANYTIME you have questions or concerns, call your Agent. Worrying over needless issues is simply a waste of time.
Vicki
Quote:
Originally Posted by DMenscha
I totally disagree with this statement. The appraisal usually comes near the end of the process. I've seen underwriters fund the loan 3 days after the appraisal was submitted and I would say that's the rule rather than the exception.
I can't imagine there is a state where this would be true, but it's possible.
Quote:
Originally Posted by Eric Young
This is a ridiculous statement with no basis in fact.
Quote:
Originally Posted by olecapt
You are in over your head. A lot of that around here.
Appraisals are routinely done in 3 days. An expedited appraisal can easily be done the same day.
The only rational for a second appraisal is the underwriter is suspicious. 95% of the time it goes away when the new appraisal comes up close to the first appraisal.
Personally, this is my favorite- the best one (personal attack).
Quote:
Originally Posted by Eric Young
You're the kind that goes to the New Gun Owners thread and advises people that the best way to check if a gun is loaded is to look down the barrel and pull the trigger, aren't you?
Whether this particular appraisal is completed quickly or not will not change the fact that your uninformed, blanket statement about appraisal turnaround times is false and stupid.
Unfortunately, no one can stop you from making statements on subjects in which you clearly have no expertise, but readers can be warned when your statements and advice pose a danger to them.
If calling someone stupid would make one smarter, this world would be filled with Mensa's.
Last edited by ch123; 01-05-2008 at 12:05 PM..
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