Alise Roberts's Q&A

All depends on the paperwork in the contact but typically nobody HAS to pay the difference.  Depending on the type of loan the buyer is attaining, they may be able to pay the difference via the down payment.  Or if the amount is small, it may be worth for the seller to pay the difference.  If the appraisal is accurate and the seller has a need to sell, then it would be wise for them to pay the difference since most buyers would need an appraisal...and realizing that that is the most the home can sell for.  However, if the appraisal is questionable, the listing agent should try to get an amended appraisal.  They can either order a new one that is approved by the buyers lender or sometimes a higher level underwriter can determine if the appraisal is inaccurate and overwrite it.  There are several avenues the seller can take, however, the listing agent should spearhead this contacting the buyer lender or appraiser (if that info is available to them) to provide them with a list of comps and reasons as to why they feel the appraisal is not accurate. Obviously there was reason it was priced the way it was as the home attained an offer at the price it came in at.

The building suffers from deferred maintenance. For years the HOA ignored problems. Finally they hired a professional management company to take over. The management company found out the siding, roofing and many other items were in need of major repair. The assessment is in the realm of $5 million dollars. The issue is that the HOA is having major trouble finding a bank to loan the money to repair this. Should they find financing, this will result in about a $88,000 assessment for this future unit owner to pay. Because of this impending fee, the price has been lowered to $99,000.00 for a purchase. However, sometime in the future, there WILL be a large assessment the homeowner will have to pay. Whether this is financed over a period of time or paid up front remains unknown for now. A future buyer needs to weigh this investment wisely. 

Yes, it is possible the bank will take it.  You will need to contact your bank and request a short sale package.  They will send you a checklist of all the items you will need to provide them in order to review whether you qualify for a short sale or not. This will likely include financial information showing your hardship.  They will also want a offer from your buyer in writing. You will want to work on this right away so you can start the process sooner than later as banks can take 1-6 months to review the request. 

Please seek legal counsel before proceeding with anything. There are a too many issues here to take on title without knowing what all the consequences can be.