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Answers (10)
Best Answer
- Karen Paytas, "Karen. Paytas"
- Contributions:77
I agree with the other responses that you can consult a real estate attorney. Or you could try and place the loan with a different lender.
Good Luck!!
Good Luck!!
- SteadyState
- Contributions:783
Do you want to increase your chances of over paying for your home?
If yes, follow the REA's advice, go to a different lender, spend money on an attorney,etc., and potentially pay more for a property than it's worth.
If no, give a box of chocolates to your appraiser, thank him/her, and go back to the seller and negotiate a lower price. REAs claim they are good negotiators so ask your agent to live up to their marketing claims.
If yes, follow the REA's advice, go to a different lender, spend money on an attorney,etc., and potentially pay more for a property than it's worth.
If no, give a box of chocolates to your appraiser, thank him/her, and go back to the seller and negotiate a lower price. REAs claim they are good negotiators so ask your agent to live up to their marketing claims.
- John King, "John_King"
- Contributions:425
Unfortunately, these things happen at the last minute all too often.
Consult with your buyer's agent to see what the best options for you are. Only you and them are really privy to the meat of the contract.
Some of the options to look at would be:
~If the home does not appraise for the sales price, and the market is declining, see if the sellers will re-negotiate the price.
~If the home does appraise, and the last one was a hiccup, consider another lender
Again, consult with your buyer's agent / attorney to see what YOUR options are.
--I am not an attorney, not a paid spokesman for an attorney, and no animals were harmed in the writing of this answer.--
Good luck!
Consult with your buyer's agent to see what the best options for you are. Only you and them are really privy to the meat of the contract.
Some of the options to look at would be:
~If the home does not appraise for the sales price, and the market is declining, see if the sellers will re-negotiate the price.
~If the home does appraise, and the last one was a hiccup, consider another lender
Again, consult with your buyer's agent / attorney to see what YOUR options are.
--I am not an attorney, not a paid spokesman for an attorney, and no animals were harmed in the writing of this answer.--
Good luck!
- Sydney10
- Contributions:31
National and state statistics are averages over millions of homes. Any individual neighborhood may differ. In my city there have been wide variations in value changes by location.
Can you ask to see the the appraisal and how it was derived? There may be new comparable sales recently. Or maybe something like a wrong bedroom count was used.
Consider the possibility that the value may really have declined. In that case, a denial is a good thing and it's protecting you too, not just the lender. You may want to re-negotiate the purchase price. Fighting to get a loan against an overvalued purchase doesn't make much sense, and certainly wouldn't be in your own best interests.
Can you ask to see the the appraisal and how it was derived? There may be new comparable sales recently. Or maybe something like a wrong bedroom count was used.
Consider the possibility that the value may really have declined. In that case, a denial is a good thing and it's protecting you too, not just the lender. You may want to re-negotiate the purchase price. Fighting to get a loan against an overvalued purchase doesn't make much sense, and certainly wouldn't be in your own best interests.
- Drew Ludlow, "DrewLudlow"
- Contributions:505
Yeah... I don't see any 'legal' issue here and I don't see any 'discrimination'. OK... for the record, I am not an attorney, blah, blah, blah, and this is not legal adivce.
Its the bank's investment at stake. Can they sell the loan on the secondary market? It is common for so many appraisals, especially in a declining market.
Like others have stated... I'd either discuss the findings with the Seller to see if they will budge on the price, find a new lender, or find a new home.
Its the bank's investment at stake. Can they sell the loan on the secondary market? It is common for so many appraisals, especially in a declining market.
Like others have stated... I'd either discuss the findings with the Seller to see if they will budge on the price, find a new lender, or find a new home.
- John Stewart, "nwhome.us"
- Contributions:2161
The data that Zillow and Case/Schiller are operating on is 4-5 months old. Lenders like current information but if they are using MSA appraisal information it can also be very distorted. All AVM data is suspect in this market in the same way that it was in 2000-2006.
I'd look for a broker/banker who can provide a wider range of lender options and, because of their status, can have a little more control over the appraisal poll that they have to use.
An appraisal that was done in December is just about useless unless the market is stable.
I'd look for a broker/banker who can provide a wider range of lender options and, because of their status, can have a little more control over the appraisal poll that they have to use.
An appraisal that was done in December is just about useless unless the market is stable.
- Scott Combs, "Scott Combs"
- Contributions:6
Unfortunately, you will have no way to fight this. A bank has a right to do whatever it deems necessary to see if the loan is something they want to buy. This is a common occurrence in today's market. The only thing you can do is let the loan originator try to get the banks upper management involved and look into this huge correction. But, as I said, this is ultimately up to the bank to decide.
The only other solution you will have is to move to a different property or apply with another lender after you have exhausted your efforts with the current lender.
The only other solution you will have is to move to a different property or apply with another lender after you have exhausted your efforts with the current lender.
- Joseph Domino, "ScottsdaleAZHomes"
- Contributions:176
Find a new lender, if they do not want your business, move on. Problem solved.
"get a real estate attorney" - to sue who? the bank has the right to loan or not loan their money according to the values they see in the home, and they have the right to hire the appraisers they feel.
Try to get the seller to lower the price in order to make this deal happen.
Try to get the seller to lower the price in order to make this deal happen.
- Brian Teyssier, "Brian Teyssier GRI"
- Contributions:964
I would consult a real estate attorney.
Good luck.
Good luck.
Can banks legally get away with coming up with their own home values?
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