To answer your question, the transaction would only be able to proceed iff:
1 – The buyer would have to come in with more cash to cover the difference.
2 – The seller and buyer would indeed need to renegotiate the price, obviously in favor of the buyer.
So the direct answer to your question is, if the buyer cannot get financing then the buyer cannot get financing. The seller can recommend to the buyer to try to financing from a different lender…in term that different lender may not implement the 5% whack off the appraisal that Wells has done… so I guess that is a 3rd alternative.
I am interested to see what the appraisers here say. For all I know they may say this is heresay and they have not heard of this happening from Wells Fargo.
