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What are the chances Fannie Mae will lower the selling price to the appraised value?

I have an executed contract on a Fannie Mae REO and just received the appraisal back for 5K less than the 125K we agreed on.  I am in the process of obtaining a conventional loan (not the HomePath loan) and cannot get my financing unless they lower the selling price to 120K.  My attorney has requested this but the are taking forever to respond.  Has anyone seen this before?  What do you think my chances look like?
  • April 21 2012 - Streamwood
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Answers (11)

did your accepted offer include a waiver of the appraisal contingency?

  • April 28 2012
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Profile picture for DaniellaScally
I am in the same position with Fannie Mae. Our offer was accepted for $175k but the appraisal came in at $170k. We have been waiting for almost a week now on a response from Fannie Mae. My agent said that because it is the end of the month Fannie Mae's priority is to close the sales they can this month and will deal with ones that will close next month after. So I too am in a waiting pattern. Most of what I have read on lines leads me to believe that if there are no repairs needed and the difference in price is less than 10% they should approve. But only time will tell. Good luck with your deal.
  • April 28 2012
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Profile picture for user1025804
They came back and lowered the full 5k but took away my closing cost credit. I've requested they put this back into the contract so we'll see!
  • April 23 2012
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Profile picture for metrodcexpert
Your contract might give you the right to switch financing. If so, just tell them that you are switching to an FHA loan and they will have no choice but to sell it for the appraised value. In essence, an FHA loan will force their hand. The fact that you went with a conventional loan probably means you are putting 20% down in order to avoid mortgage insurance. If this is the case, you might have fewer options. If you aren't putting 20% down, you would be better off with an FHA loan anyway since rates are about .25% cheaper.
  • April 23 2012
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I would guess about 50/50, depending on several factors and some luck. 

  • April 23 2012
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They may try to force you to pay. But after they realize it's not going to happen, they usually lower the price (unless they have a cash offer).
  • April 23 2012
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Profile picture for JohnWilt
I have had this happen a few times in the last 24 months and in each instance after a long wait and multiple requests the price was lowered to the appraised value and the property ultimately closed. Hang in there. -John
  • April 22 2012
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My guess is they will either lower the price or have an appraisal / BPO done - or both.
  • April 21 2012
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are you ready for the truth?

in Vegas prices are on the rise

  • April 21 2012
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  • April 21 2012
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It is very difficult to know, but I have seen it happen. I would guess 50/50 yet there is nothing you can do to influence them. At least you can cancel the deal if they do not.
  • April 21 2012
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