No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
I have been under contract on a Fannie Mae property since November. It was originally listed at $85,500. I offered 86,500 with the seller contributing $1000 to closing costs. They then asked for highest and best. Because I had been outbid on about 4 homes previously, my highest and best was $91,000. My offer was accepted. I was given a closing date of December 27th and completed everything that was required of me. The lender's appraisal came back at $77,500. I was stoked! I signed an amendment to the sales price and have been waiting since December 3rd for a response. Just yesterday I signed an extension of the closing through December 31, 2012. I was told that the lender had and FHA appraisal done that would stick with the property for 6 months and by law it could not be sold for over that amount. One would think it would be in their best interest to sell it to the person that has completed the process and ready to close.....not so much!
Today I get an alert from the HomePath site that the home is now back on the market. I immediately contacted my agent who informed me that she received an email late yesterday advising that the sales price amendment was rejected. The lender requested a copy of the listing agent's appraisal so that they could negotiate some sort of medium. My agent said she has yet to receive a "release" from the property (forgive me if I use the wrong terminology) so technically we are still under contract and it shouldn't have been re-listed.
I have invested money in an inspection and appraisal, as well as 3 months of my life on a home I thought I'd be preparing to move in at this point. Does anyone have any experience with an issue similar to this? I am so aggravated with this!
I apologize for my storybook
@nesh1120 wrote:I have been under contract on a Fannie Mae property since November. It was originally listed at $85,500. I offered 86,500 with the seller contributing $1000 to closing costs. They then asked for highest and best. Because I had been outbid on about 4 homes previously, my highest and best was $91,000. My offer was accepted. I was given a closing date of December 27th and completed everything that was required of me. The lender's appraisal came back at $77,500. I was stoked! I signed an amendment to the sales price and have been waiting since December 3rd for a response. Just yesterday I signed an extension of the closing through December 31, 2012. I was told that the lender had and FHA appraisal done that would stick with the property for 6 months and by law it could not be sold for over that amount. One would think it would be in their best interest to sell it to the person that has completed the process and ready to close.....not so much!
Today I get an alert from the HomePath site that the home is now back on the market. I immediately contacted my agent who informed me that she received an email late yesterday advising that the sales price amendment was rejected. The lender requested a copy of the listing agent's appraisal so that they could negotiate some sort of medium. My agent said she has yet to receive a "release" from the property (forgive me if I use the wrong terminology) so technically we are still under contract and it shouldn't have been re-listed.
I have invested money in an inspection and appraisal, as well as 3 months of my life on a home I thought I'd be preparing to move in at this point. Does anyone have any experience with an issue similar to this? I am so aggravated with this!
I apologize for my storybook
I highlighted and bolded part of your post. Someone gave you bad information about how the process works. There is no "law" that prevents the seller from putting the property back on the market and getting another offer.
Your appraisal came in lower than the contract price. So read the FHA addendum, it specifies the remedies available when the appraisal comes in below the contract value. At that point there are one of three things that can be done: 1) you can pay the difference in cash between the appraised value and the contract price; or 2) you and the seller can come to a mutually agreeable price, including the seller accepted the appraised value; or 3) you and the seller can cancel the contract. In your case, Fannie Mae took option 3.
The seller can put the property back on the market and obtain another contract. Yes, the FHA appraisal stays with the property for 6 months, but that does not prevent the seller from getting an offer that is financed conventionally or from a cash buyer. The seller can even sell it FHA if the new buyer is willing to pay the difference in cash.
I sell lots of Fannie Mae properties and other REO's. Not all of them are priced right. Buying an REO property is a frustrating process, but also very rewarding. Keep looking, there is another property out there for you.
If Fannie Mae chose option 3, shouldn't it have been a mutual agreement? According to my agent, she and the lender were waiting on the copy of the sellers appraisal to further negotiate.
@nesh1120 wrote:If Fannie Mae chose option 3, shouldn't it have been a mutual agreement? According to my agent, she and the lender were waiting on the copy of the sellers appraisal to further negotiate.
Didn't you miss your closing date?
You can continue to negotiate to save the deal. In the meantime the seller will continue to market the property to get another buyer because you are past your closing date. The contract (and the fannie mae addendum especially) specifies what happens when you miss the closing date.
Hi-
I have the same problem.
Apprasal came low and they didnt accept it
@nesh1120 wrote:I have been under contract on a Fannie Mae property since November. It was originally listed at $85,500. I offered 86,500 with the seller contributing $1000 to closing costs. They then asked for highest and best. Because I had been outbid on about 4 homes previously, my highest and best was $91,000. My offer was accepted. I was given a closing date of December 27th and completed everything that was required of me. The lender's appraisal came back at $77,500. I was stoked! I signed an amendment to the sales price and have been waiting since December 3rd for a response. Just yesterday I signed an extension of the closing through December 31, 2012. I was told that the lender had and FHA appraisal done that would stick with the property for 6 months and by law it could not be sold for over that amount. One would think it would be in their best interest to sell it to the person that has completed the process and ready to close.....not so much!
Today I get an alert from the HomePath site that the home is now back on the market. I immediately contacted my agent who informed me that she received an email late yesterday advising that the sales price amendment was rejected. The lender requested a copy of the listing agent's appraisal so that they could negotiate some sort of medium. My agent said she has yet to receive a "release" from the property (forgive me if I use the wrong terminology) so technically we are still under contract and it shouldn't have been re-listed.
I have invested money in an inspection and appraisal, as well as 3 months of my life on a home I thought I'd be preparing to move in at this point. Does anyone have any experience with an issue similar to this? I am so aggravated with this!
I apologize for my storybook