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  • boem
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Appraisal Issue

offer to the house has been accepted under 30 yr fixed conv loan.  Appraisal  came up with lot of repair, so lender refuses to lend... appraiser requests seller to fix up certain things in the house.. how long do I have to wait and How can I get out of the contract since earnest deposit already in escrow hand... please any advice to get ED back....
  • June 16 2009 - Phoenix
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Answers (5)

Make sure your inspect contigency hasn't expired and disapprove of the inspection. 
  • June 22 2009
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Working with the listing agent does not mean you are in a dual agency arrangement. In a dual agency arrangement, contingencies are written into contracts just as they are when working with a buyers agent.

Boem: Your contract should spell out exactly what happens in the event you cannot get financing. Most state approved contracts already have this language inserted. Read yours to determine what you need to do next to walk if the repairs are not made.
  • June 22 2009
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I can the first response would be to ask, "Do you have a RE Professional on your side?"  That would be your first allie in this matter.

Secondly, if there is no mention in the contract that your Earnest Deposit is "non-refundable", then you can refer to the Appraisal Contingency -- of course this is if you utilize the AAR contract.  To cancel a contract which the inspection period is probably the best what, but again you do have the Loan Contingency and the Appraisal Contingency.  Don't wait too late to inform your Seller because this would be a breach of contract due to lack of disclosure and could result in a Cure Period Notice.

NOTE:  A cancellation must be given to the Title Company, and then to the Seller's Agent which will be notification to the Seller.

Good Luck.
  • June 22 2009
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Also, check your inspection period. If you're within your "10" day inspection period you can always get your earnest money back. CHECK YOUR CONTRACT. You do have a realtor right? You didn't just buy a home using the listing agent did you? Hope not, otherwise you're working in dual agency and that's never good.
  • June 17 2009
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Was there a finance contingency as part of your purchase agreement that states that if you are unable to find financing, your agreement with the seller is terminated and you get your earnest money back?

Check with your Realtor for your next step.
  • June 16 2009
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