If an Appraisal came in low while in escrow,what to do?

[farbet]

What about this Scenario

What about this scenario:
You make and offer on a house on a short sale. The Bank(seller) approves.
Before Close of escrow and within the escrow peiod weeks a few houses(one opposite) same size, same street and within 1/2 mile etc comes on as REO’s and short sales at about 50K-70 K lower.
Will the appraiser pick these up? Is there ,other than walking away, to ask that the price be lowered to match comps ?
appreciate your replies

[raptorduck]

If you wrote your offer with an appraisal contingency, and it does not appraise, you can walk away or ask for a price concession.

Shorts sales are a different animal however, and their unpleasent nature has been well documented on this board. It seems to me that the bank would rather take posession than approve a lower offer, but who knows.

For me, with normal offers, I always worry about appraisal, but if it does not appraise, and if the seller refuses to adjust the price accordingly, I can walk away. You can do that with the short sale too if you had it as a contingency.

[Bugs]

Or, if you love the house you can make up the difference out of pocket.

[farbet]

Thank you guys

[farbet]

Thank you guys

[farbet]

Thank you guys

[farbet]

Thank you guys

[farbet]

Thank you guys

[Bugs]

Or, if you love the house you can make up the difference out of pocket.

[Bugs]

Or, if you love the house you can make up the difference out of pocket.

[Bugs]

Or, if you love the house you can make up the difference out of pocket.

[Bugs]

Or, if you love the house you can make up the difference out of pocket.

[SD Realtor]

Even in short sales your contingencies are still in effect unless you for some reason have waived them. Similarly your contingency period should not have started until the offer was accepted by the lender, not the seller. So in the case you posed above farbet you will be fine.

SD Realtor

[farbet]

SD Realtor
My co worker thanks you.They are buying a condo and every thing is dropping around them.

[SD Realtor]

No worries Farbet. Let them know that even if they have passed the contingency period, if they have not actually SIGNED a removal of contingency document then they are still in luck and can back out with no loss of deposit.

SD Realtor

[NotCranky]

This has changed over time SDR. For a while, If I remember correctly the buyer had to indicate passive or active removal of contingencies. My broker doesn’t like the curent language and if he wants the loan contingency to remain in effect for the duration of escrow or until funding he puts it in an addendum just to be sure it is clear. I have not had a problem with it but I’ll be honest I don’t understand that language about continuation of contingencies in that section of the contract.That is why I said in another post a lawyer could interpret it various ways. Seems you are always thinking active removal is required to put the buyer’s deposit in jeopardy? Maybe you could go help donaldduckmoore on his thread. He is worried about his deposit and although he didn’t state if he removed his contingency in writing, I told him he could have a hard time getting it back.I am not sticking my neck out with a supposedly conclusive answer on somebody else’s escrow on this topic. Anyway it is a shame if an agent doesn’t help protect the deposit when they write the offer.

[SD Realtor]

Hi Rustico –

I had 2 similar situation actually occur in the past few weeks. In the first one my buyer was concerned about the loan contingency so on page 1 of the RPA we marked that the loan contingency shall remain in place until the close of escrow. That was air tight and although the seller didn’t like it we kept it in place and we did successfully close. That was a short sale in Mira Mesa believe it or not. In the second case this was exactly like the case described above here. We hit the contingency removal time and my buyer simply did not have his financing locked in because he had a crappy mortgage broker/lender. I told the listing agent we could not remove contingencies… They kept pressing and pressing and we kept telling them we could not. We told them if they wanted to cancel escrow they could but that in no way could we remove the contingencies. I kept it all documented and 2 weeks after the supposed contingency removal date we did indeed have to cancel because this person could not obtain the financing he needed. The seller did indeed return the deposit. I agree with what you are saying and there could indeed be cases that I am not considering. Luckily I have not run into them and I think if your agent is good, documents everything and such, you should be able to see your deposit come home.

SD Realtor

[SD Realtor]

Hi Rustico –

I had 2 similar situation actually occur in the past few weeks. In the first one my buyer was concerned about the loan contingency so on page 1 of the RPA we marked that the loan contingency shall remain in place until the close of escrow. That was air tight and although the seller didn’t like it we kept it in place and we did successfully close. That was a short sale in Mira Mesa believe it or not. In the second case this was exactly like the case described above here. We hit the contingency removal time and my buyer simply did not have his financing locked in because he had a crappy mortgage broker/lender. I told the listing agent we could not remove contingencies… They kept pressing and pressing and we kept telling them we could not. We told them if they wanted to cancel escrow they could but that in no way could we remove the contingencies. I kept it all documented and 2 weeks after the supposed contingency removal date we did indeed have to cancel because this person could not obtain the financing he needed. The seller did indeed return the deposit. I agree with what you are saying and there could indeed be cases that I am not considering. Luckily I have not run into them and I think if your agent is good, documents everything and such, you should be able to see your deposit come home.

SD Realtor

[SD Realtor]

Hi Rustico –

I had 2 similar situation actually occur in the past few weeks. In the first one my buyer was concerned about the loan contingency so on page 1 of the RPA we marked that the loan contingency shall remain in place until the close of escrow. That was air tight and although the seller didn’t like it we kept it in place and we did successfully close. That was a short sale in Mira Mesa believe it or not. In the second case this was exactly like the case described above here. We hit the contingency removal time and my buyer simply did not have his financing locked in because he had a crappy mortgage broker/lender. I told the listing agent we could not remove contingencies… They kept pressing and pressing and we kept telling them we could not. We told them if they wanted to cancel escrow they could but that in no way could we remove the contingencies. I kept it all documented and 2 weeks after the supposed contingency removal date we did indeed have to cancel because this person could not obtain the financing he needed. The seller did indeed return the deposit. I agree with what you are saying and there could indeed be cases that I am not considering. Luckily I have not run into them and I think if your agent is good, documents everything and such, you should be able to see your deposit come home.

SD Realtor

[SD Realtor]

Hi Rustico –

I had 2 similar situation actually occur in the past few weeks. In the first one my buyer was concerned about the loan contingency so on page 1 of the RPA we marked that the loan contingency shall remain in place until the close of escrow. That was air tight and although the seller didn’t like it we kept it in place and we did successfully close. That was a short sale in Mira Mesa believe it or not. In the second case this was exactly like the case described above here. We hit the contingency removal time and my buyer simply did not have his financing locked in because he had a crappy mortgage broker/lender. I told the listing agent we could not remove contingencies… They kept pressing and pressing and we kept telling them we could not. We told them if they wanted to cancel escrow they could but that in no way could we remove the contingencies. I kept it all documented and 2 weeks after the supposed contingency removal date we did indeed have to cancel because this person could not obtain the financing he needed. The seller did indeed return the deposit. I agree with what you are saying and there could indeed be cases that I am not considering. Luckily I have not run into them and I think if your agent is good, documents everything and such, you should be able to see your deposit come home.

SD Realtor

[SD Realtor]

Hi Rustico –

I had 2 similar situation actually occur in the past few weeks. In the first one my buyer was concerned about the loan contingency so on page 1 of the RPA we marked that the loan contingency shall remain in place until the close of escrow. That was air tight and although the seller didn’t like it we kept it in place and we did successfully close. That was a short sale in Mira Mesa believe it or not. In the second case this was exactly like the case described above here. We hit the contingency removal time and my buyer simply did not have his financing locked in because he had a crappy mortgage broker/lender. I told the listing agent we could not remove contingencies… They kept pressing and pressing and we kept telling them we could not. We told them if they wanted to cancel escrow they could but that in no way could we remove the contingencies. I kept it all documented and 2 weeks after the supposed contingency removal date we did indeed have to cancel because this person could not obtain the financing he needed. The seller did indeed return the deposit. I agree with what you are saying and there could indeed be cases that I am not considering. Luckily I have not run into them and I think if your agent is good, documents everything and such, you should be able to see your deposit come home.

SD Realtor

[NotCranky]

This has changed over time SDR. For a while, If I remember correctly the buyer had to indicate passive or active removal of contingencies. My broker doesn’t like the curent language and if he wants the loan contingency to remain in effect for the duration of escrow or until funding he puts it in an addendum just to be sure it is clear. I have not had a problem with it but I’ll be honest I don’t understand that language about continuation of contingencies in that section of the contract.That is why I said in another post a lawyer could interpret it various ways. Seems you are always thinking active removal is required to put the buyer’s deposit in jeopardy? Maybe you could go help donaldduckmoore on his thread. He is worried about his deposit and although he didn’t state if he removed his contingency in writing, I told him he could have a hard time getting it back.I am not sticking my neck out with a supposedly conclusive answer on somebody else’s escrow on this topic. Anyway it is a shame if an agent doesn’t help protect the deposit when they write the offer.

[NotCranky]

This has changed over time SDR. For a while, If I remember correctly the buyer had to indicate passive or active removal of contingencies. My broker doesn’t like the curent language and if he wants the loan contingency to remain in effect for the duration of escrow or until funding he puts it in an addendum just to be sure it is clear. I have not had a problem with it but I’ll be honest I don’t understand that language about continuation of contingencies in that section of the contract.That is why I said in another post a lawyer could interpret it various ways. Seems you are always thinking active removal is required to put the buyer’s deposit in jeopardy? Maybe you could go help donaldduckmoore on his thread. He is worried about his deposit and although he didn’t state if he removed his contingency in writing, I told him he could have a hard time getting it back.I am not sticking my neck out with a supposedly conclusive answer on somebody else’s escrow on this topic. Anyway it is a shame if an agent doesn’t help protect the deposit when they write the offer.

[NotCranky]

This has changed over time SDR. For a while, If I remember correctly the buyer had to indicate passive or active removal of contingencies. My broker doesn’t like the curent language and if he wants the loan contingency to remain in effect for the duration of escrow or until funding he puts it in an addendum just to be sure it is clear. I have not had a problem with it but I’ll be honest I don’t understand that language about continuation of contingencies in that section of the contract.That is why I said in another post a lawyer could interpret it various ways. Seems you are always thinking active removal is required to put the buyer’s deposit in jeopardy? Maybe you could go help donaldduckmoore on his thread. He is worried about his deposit and although he didn’t state if he removed his contingency in writing, I told him he could have a hard time getting it back.I am not sticking my neck out with a supposedly conclusive answer on somebody else’s escrow on this topic. Anyway it is a shame if an agent doesn’t help protect the deposit when they write the offer.

[NotCranky]

This has changed over time SDR. For a while, If I remember correctly the buyer had to indicate passive or active removal of contingencies. My broker doesn’t like the curent language and if he wants the loan contingency to remain in effect for the duration of escrow or until funding he puts it in an addendum just to be sure it is clear. I have not had a problem with it but I’ll be honest I don’t understand that language about continuation of contingencies in that section of the contract.That is why I said in another post a lawyer could interpret it various ways. Seems you are always thinking active removal is required to put the buyer’s deposit in jeopardy? Maybe you could go help donaldduckmoore on his thread. He is worried about his deposit and although he didn’t state if he removed his contingency in writing, I told him he could have a hard time getting it back.I am not sticking my neck out with a supposedly conclusive answer on somebody else’s escrow on this topic. Anyway it is a shame if an agent doesn’t help protect the deposit when they write the offer.

[SD Realtor]

No worries Farbet. Let them know that even if they have passed the contingency period, if they have not actually SIGNED a removal of contingency document then they are still in luck and can back out with no loss of deposit.

SD Realtor

[SD Realtor]

No worries Farbet. Let them know that even if they have passed the contingency period, if they have not actually SIGNED a removal of contingency document then they are still in luck and can back out with no loss of deposit.

SD Realtor

[SD Realtor]

No worries Farbet. Let them know that even if they have passed the contingency period, if they have not actually SIGNED a removal of contingency document then they are still in luck and can back out with no loss of deposit.

SD Realtor

[SD Realtor]

No worries Farbet. Let them know that even if they have passed the contingency period, if they have not actually SIGNED a removal of contingency document then they are still in luck and can back out with no loss of deposit.

SD Realtor

[farbet]

SD Realtor
My co worker thanks you.They are buying a condo and every thing is dropping around them.

[farbet]

SD Realtor
My co worker thanks you.They are buying a condo and every thing is dropping around them.

[farbet]

SD Realtor
My co worker thanks you.They are buying a condo and every thing is dropping around them.

[farbet]

SD Realtor
My co worker thanks you.They are buying a condo and every thing is dropping around them.

[SD Realtor]

Even in short sales your contingencies are still in effect unless you for some reason have waived them. Similarly your contingency period should not have started until the offer was accepted by the lender, not the seller. So in the case you posed above farbet you will be fine.

SD Realtor

[SD Realtor]

Even in short sales your contingencies are still in effect unless you for some reason have waived them. Similarly your contingency period should not have started until the offer was accepted by the lender, not the seller. So in the case you posed above farbet you will be fine.

SD Realtor

[SD Realtor]

Even in short sales your contingencies are still in effect unless you for some reason have waived them. Similarly your contingency period should not have started until the offer was accepted by the lender, not the seller. So in the case you posed above farbet you will be fine.

SD Realtor

[SD Realtor]

Even in short sales your contingencies are still in effect unless you for some reason have waived them. Similarly your contingency period should not have started until the offer was accepted by the lender, not the seller. So in the case you posed above farbet you will be fine.

SD Realtor

[raptorduck]

If you wrote your offer with an appraisal contingency, and it does not appraise, you can walk away or ask for a price concession.

Shorts sales are a different animal however, and their unpleasent nature has been well documented on this board. It seems to me that the bank would rather take posession than approve a lower offer, but who knows.

For me, with normal offers, I always worry about appraisal, but if it does not appraise, and if the seller refuses to adjust the price accordingly, I can walk away. You can do that with the short sale too if you had it as a contingency.

[raptorduck]

If you wrote your offer with an appraisal contingency, and it does not appraise, you can walk away or ask for a price concession.

Shorts sales are a different animal however, and their unpleasent nature has been well documented on this board. It seems to me that the bank would rather take posession than approve a lower offer, but who knows.

For me, with normal offers, I always worry about appraisal, but if it does not appraise, and if the seller refuses to adjust the price accordingly, I can walk away. You can do that with the short sale too if you had it as a contingency.

[raptorduck]

If you wrote your offer with an appraisal contingency, and it does not appraise, you can walk away or ask for a price concession.

Shorts sales are a different animal however, and their unpleasent nature has been well documented on this board. It seems to me that the bank would rather take posession than approve a lower offer, but who knows.

For me, with normal offers, I always worry about appraisal, but if it does not appraise, and if the seller refuses to adjust the price accordingly, I can walk away. You can do that with the short sale too if you had it as a contingency.

[raptorduck]

If you wrote your offer with an appraisal contingency, and it does not appraise, you can walk away or ask for a price concession.

Shorts sales are a different animal however, and their unpleasent nature has been well documented on this board. It seems to me that the bank would rather take posession than approve a lower offer, but who knows.

For me, with normal offers, I always worry about appraisal, but if it does not appraise, and if the seller refuses to adjust the price accordingly, I can walk away. You can do that with the short sale too if you had it as a contingency.

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