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Question about appraisals
My H & I received our commitment letter, so on that end, we're good (so far).
Our bank is ordering the appraisal, but I?m wondering, does the seller/seller's bank get notified of what the house appraised at from our bank?
The house we are buying is a short sale....the seller's bank ordered a BPO which actually came back lower than the price we offered, so the purchase price was then adjusted and amended on the contract. Now, we are still waiting for the seller's bank to approve the sale, which we should have an answer by tomorrow (so I was told). What happens if the house appraises higher than the new purchase price? For example - the purchase price on the house now is at 255k, but what if our bank appraises the house at 300k? What would happen? Do we need to disclose this to the seller/seller's bank?
I don't think the house will appraise lower than 255k, but I have no idea how it works when it appraises higher.....and I?m nervous since this is a short sale and I just don't want this deal to fall through.....
Re: Question about appraisals
Thanks. Yea, I just want to be sure because the situation we have is a bit unusual. The seller's bank assigned a negotiator and ordered a BPO on the house and the BPO came back lower than the price that we offered and was accepted by the seller. So they amended the contract to the lower price and that was what was submitted to the bank. I'm not so worried about the appraisal coming back lower than the BPO on our end, because I do not think that will happen, but I wasn't sure what would happen if our appraisal came back higher and if that would affect the deal in any way....
I believe the appraisal is for your lender. They want to make sure they're not lending you more than what the house is worth. I'm curious as to why they're moving forward with an appraisal when you don't even have approval from the seller's bank yet though.
They aren't moving forward with the appraisal just yet....we are getting all of the paperwork sorted out on our end while we are waiting for the seller's bank to approve and once they give the green light, then our lender is doing the appraisal, but that green light should be any day now. This was just something that I was curious about so I am informed when the time comes for our lender to get the appraisal.
We are hoping to have an answer from the seller's bank soon, but I know it can take a little while, although surprisingly, the process for us has moved at a pretty good pace so far. The realtor has been good about keeping us updated with any news....fingers crossed....we really like this house
Just be prepared to wait. The bank sat on three other offers before ours for 2-3 months each. They did the BPO and all that but then just stalled. All the other potential buyers ended up moving on. Somehow our offer gets sent and we had approval in a little under a month, it was crazy.
Word of advice, find out if there's any liens on the property and make sure they're being sorted out if there are. I'm currently waiting on the IRS to drop a lien so we can close. Apparently they've been "working on it" all this time but it's still there. And we have a closing deadline of the 28th. So basically I need this lien dropped by Tuesday at the very latest or else I have no idea what's going to happen. I also have renters planning on moving into my current house on the 1st. FML right now...
Oh wow....sorry to hear about your situation. Hopefully it gets sorted in time....
For us, we know we may have to wait and we knew that going in to this whole thing....luckily, we don't have to be out of our place any time soon, so if it takes a few months to go through, then it's fine. As far as finding out if there are any liens on the property - would the listing agent have this information? We have a lawyer and I believe they are supposed to be checking that stuff because when we signed the contracts, they mentioned that to us.....
Someone needs to do a preliminary title search, although who is supposed to do that I'm not sure. I think the lawyer can get that started for you but I'm not positive.
We were in a similar situation, we didn't need to move and waiting was fine. I've actually been at this since last September. The thought that this could just die on me at the last minute is devastating!
Yea, I?m pretty sure our lawyer said they would be taking care of that. One of the conditions listed on our commitment letter was to get the title, but in parenthesis, our broker said they would get that from our lawyer. So crazy all of the little things that come up during this process....
Anyway, fingers crossed for you....I know how frustrating it must be at this point, especially if stuff is left until the final hour, but it will happen for you....keep us all posted!