purchaser does not want to complete transaction with low appraisal even if seller reduces price???

Purchaser is not willing to move forward on a purchase even if the seller reduces the price to match a FHA appraisal. The language in the amendatory clause states the buyer has the privilege and option. Buyer assumes he is not required to move forward.
  • December 27 2010 - Washington
  • 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 (7)

If the language reads as you have stated (buyer has the privilege and option.)
 then it is pretty clear the buyer can walk away with no recourse. I'm surprised some of the RE agents don't all agree or seemed a little confused by your question. 

  • January 10 2011
  • 1Yes

  • 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.

It all depends on the sales contract.  This is really the only answer. Your attorney should be able to explain the options the specific contract allows.
  • December 28 2010
  • 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 Silver Mortgage Co.
yes...you're correct, I mis-read it....and yes, You and Patrick are obviously both exactly correct.
  • December 27 2010
  • 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.

First of all...........Steve - you need to reread the question. The seller did NOT refuse to lower the price to accommodate the lower appraisal. In fact. the seller may be willing to do so, but the BUYER wants out of the deal regardless of what the seller does.

That is the crux of the question!
The question is whether the buyer can walk away.....even if the seller lowers the price.

Pstrick seems quite certain the buyer may, in fact, walk away due to the lower appraisal.

Since you have doubts and  are asking this question in the first place, Charles.......to be certiain, as the agent handling the transaction, why not verify the legal status by simply asking an ATTORNEY!
  • December 27 2010
  • 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 SoCal Engr
If you're a pro on these boards, you really should take the time to actually comprehend the OP's comment/question. It doesn't engender a whole lot of faith when responses are 180-out from the OP's line-of-discussion.
  • December 27 2010
  • 2Yes

  • 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 Silver Mortgage Co.
Patrick's exactly right Charles...question: is the reason the seller wouldn't lower the price to match the appraisal due to what they currently owe (maybe they can't pay off their loan with the lower proceeds)?...if so, you might try a short sale. Just be prepared for it to take a while.

If not, and you aren't in a big hurry, you might just stand-by and see if the seller calls you back in a month or two. But the good news is if your loan approved (other than appraisal) you can go find another house right now and use this loan/case number for it (subject to approval/appraisal of the new house).

Who knows, once the seller hears that, maybe they'll accept the lower price, you never know. Good luck!
  • December 27 2010
  • 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 Mortgage Brothers
You are correct.  Both the mortgage contingency clause in the agreement of sale and the FHA Amendatory Clause specific to FHA transaction would normally allow the purchaser to back out of the contract whether the seller is willing to lower the price or not.

A seller willing to lower the price requires an addendum to the agreement of sale, which requires both parties to sign.  If you are not willing to sign the terms of the original contract cannot be met and you can terminate the contract. 
  • December 27 2010
  • 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.