Please help, I am dealing with Midland Bank on a short sale, the home has been on the market for 380 days, yep a year...I finally had it listed at $125, as we had no offers in the year, it started at 155k.....so, we get 2 offers at 125k in Feb., when the FHA appraiser went out to do his thing for the bank, he came back at $139k, so even the ratios at 84% did not end up working.....so I complained and complained that the appraisal was incorrect and we just got 2 more offers, now 3 months later...they did the 2nd appraisal and no joke, this time it came back at $141,900...r u kidding me, REALLY? Now, Midland again wants to reject both offers, one is a great offer over and above...but they have said the ratios go back to 86% b/c the new appraisal has been ordered...HUD said not correct but this bank may be the death of me...if anyone wants this property, it may be the only property in the US that has sat for a year, not sold but continues to see value over and beyond without anyone ever touching it...HELP and or suggestions welcomed!
Melissa,
When this happens to me I would find ut if they would consider an appraisal done by us. We would have to pay for it, but I have been able to get the lenders to rethink their stand. The argument being that their appraisal is not going to secure a mortgage and if the number comes back at a lower level then they have no choice but to accept it or go into foreclosure. A higher number would not be possible for someone trying to secure a mortgage for that purchase.
Also, see if they will tell you what their criteria is in doing an appraisal. The are lenders that do not want to use foreclosed homes or other short sales in their evaluation. You should also always go to the BPO or appraisal in order to have a conversation with that person. It will give you an idea of what they are looking at and it will also let you voice your opinion on what you know of the area.
Hey!,
Nothing short of telling the appraisers what I needed to have is what I did, they still came higher...go figure, anyhow-as of this morning, the bank informed me they would accept the lower appraisal and accept an offer, it took us getting a HUD representative involved and making a phone call for us, but as of 9am, it is now pending, if only I could ask these appraisers to go out to homes I can't obtain value on...haha
Thanks
Melissa: I have had similar experiences, but have never worked with this specific bank. What I have been able to do (and maybe this will work for you) is to get the bank to accept a buyer's offer (even if it was lower than their appraisal) IF (and only if) I submit the buyer's appraisal that they are using to get their loan. For example, I had an approval at 430k from Bank of America last week, and they agreed to lower the approved price to 415k when I submitted the buyer's appraisal. This has worked for me a few times. Perhaps it can work for you. Good Luck!
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