Ravensworth, Springfield, VA short sale specialist Traci Rochon of Dan and Traci and Consultants with Keller Williams Realty talks about FHA challenges in Ravensworth, Springfield, VA. A short sale of a home, as a last-ditch effort to avoid foreclosure, is challenging enough, without the FHA torpedoing it in mid-voyage because of a faulty appraisal. Unfortunately, this is happening now in a disturbing number of cases.
Because of declining home prices, the appraisal is one of the toughest challenges facing buyers and sellers today. Sellers have to essentially sell their home twice, first to a buyer and then to the buyer’s bank’s appraiser. Because FHA loans have a smaller downpayment, appraisals falling short of the agreed-upon price can quickly kill the transaction or force the seller to accept the appraised amount, rather than the amount first negotiated with the buyer.
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