My Life as a San Francisco Realtor: December 2011

Be Very Careful with FHA Appraisals

Be Very Careful with FHA Appraisals

I have a Short Sale Listing. List price: $255,000.00 An offer came in at $258,000. Buyer is using FHA financing.  Submitted to short sale lender and got an approval. FHA Appraisal came in at $258,000. So far so good. Inspections OK. Then buyer's wife decides she doesn't like the house???? Deal falls apart. Back on Market.

New offer comes in at $263,000. Seller accepts. Submitted to short sale lender and got an approval. Appraisal comes in at $263,000. All is well.

One week from closing, buyer's loan agent advises of the following from underwriting:

APPRAISAL ALREADY COMPLETED FOR THIS PROPERTY & HAS NOT EXPIRED

(LOGGED IN FHA CONNECTION). PROVIDE COPY OF APPRAISAL & MUST BE USED INUNDERWRITING DETERMINATION, PER HUD, EVEN IF BWR HAS CHANGED

1.

APPRAISAL CAME IN AT $258,000 PER FHA CONNECTION. BROKER TO ADVISE IF

PURCHASE ADDENDUM WILL BE PROVIDED & LOAN MUST BE UPDATED

ACCORDINGLY

 

So, what next. Resubmit to short sale lender at a sales price of $258,000. Advise them of the FHA conditions. Ask them to consider their previous approval of $258,000. Hope for the best!

 

By the way, buyer's are pissed they had to pay for a new appraisal when it couldn't be used.....

 

 

John M Scott, Broker / Owner, Scott Keys Properties, Certified Distressed Property Expert (CDPE), Council of Real Estate Brokerage Managers (CRB), serving San Francisco and the surrounding San Francisco Bay Area

Comment balloon 14 commentsJohn M. Scott • December 30 2011 08:49PM
Be Very Careful with FHA Appraisals
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