Profile picture for user2754219

Price Amended Rejected, Property Re-listed....Now What?

I have been under contract on a Fannie Mae property since October.  It was originally listed at $85,500.  They then asked for highest and best, my highest and best was $91,000.  My offer was accepted.  I was given a closing date of December 27th and completed everything that was required of me.  The lender's appraisal came back at $77,500.  I was stoked!  I signed an amendment to the sales price and have been waiting since December 3rd for a response. Just yesterday I signed an extension of the closing through December 31, 2012. I was told that the lender had and FHA appraisal done that would stick with the property for 6 months and it could not be sold for over that amount without a disclosure.

Today I get an alert from the HomePath site that the home is now back on the market.  I immediately contacted my agent who informed me that she received an email late yesterday advising that the sales price amendment was rejected.  The lender requested a copy of the listing agent's appraisal so that they could negotiate some sort of medium.  My agent said she has yet to receive a "release" from the property (forgive me if I use the wrong terminology) so technically we are still under contract and it shouldn't have been re-listed.

 Does anyone have any experience with an issue similar to this?  I am so aggravated with this!  

 



  • December 30 2012 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (5)

Bummer, appraisals remain a huge sore spot in our marketplace. I am in FL I am not sure where you are at. It is a national problem. Appraisal that come low are a difficulty.  In FL our basic "as-is" and the Fannie Mae, sales addendum that is national, reads that if you have an appraisal contingency in the deal to paraphrase " if it comes in low you don't have to buy and the seller does not have to sell" there is no automatic lowering of the price.

I have had several low appraisal problems like this in the last 3 years. Your options are:

pay the difference in cash between the appraisal and their counter offer

walk away from the deal

As far as the appraisal it stays in the FHA database for 6 months. However the seller can sell the home and accept any FHA financed deals
  • December 30 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Again, we need to see how it is written but Fannie almost always gives back earnest money when a deal falls. Wait to see what the FHA appraisal comes in for, you were offering $91,000 so it must come in over that or your lender will bail out unless you make up the difference with more cash down. If it comes back at something closer to $85,500 I am sure Fannie will accept it. Good luck

tim
  • December 30 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user2754219
They re-listed it at the original price, $85,500.  According to my agent, the lender is still waiting on the sellers appraisal to negotiate.  In the event that this contract has completely fell through, what about my earnest money?
  • December 30 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

From what you have said, I would guess that Fannie Mae did not like your lender's appraisal, had another appraisal done and put the home back on the market. From what you have said, I would guess that Fannie Mae did not sign any of the documents you signed after your lender's appraisal. You might want to submit another purchase agreement, if the home really is back on the market. I have only been making guesses. You need to talk to your Buyer's Agent about the reality of the situation.
  • December 30 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Isn't it fun dealing with banks and government agencies? They do not act like normal people in sales transactions do they?

You sound like you are trying to buy a house that is priced well above the appraised value. The owner (Fannie) surely had valuations done prior to listing the property so they were probably dumbfounded by the appraisal coming in 10% lower than listed, which is usually below the actual value they think it is worth. When the appraisal came in low your lender will not allow the loan at the $91,000 offered price. I would have to see the offer and how it is written to know if that made the contract null and void or not or what it does to it. My experience with Fannie is they usually have their own documents they require which protect them more than you. What is the new listed price? Is it the same or did the bank now drop it to $77,500? Is your contract still primary and they are just looking for back ups?
tim
  • December 30 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.