FHA loan - appraisal came in too low

[dannyz21]

Hello,

I put an offer on an indymac bank owned home for $235k.  Appraisal just came back for $226.  Now we've gone back to the bank to ask them to lower price to $226.  Does anyone have any idea what the chances are that this will happen?  We don't have money to make up the difference so the bank lowering the price is our only option.

Also, our agent told us that all indymac sales in escrow need to be closed by april 15, 2009.  Any transactions still pending at that time will be cancelled because the FDIC is taking over.  I thought they already had, but this is what the escrow agent told my realtor.

Any advice/comments would be greatly appreciated.

[Anonymous]

It is up to the bank.  THey will probably expect you to meet the m in the middle but just tell your realtor to be blunt that can not come up with any out of pocket cash to make the deal and you need either a yes or no answer, not negotiations so you can move on if necessary.

[Anonymous]

I am waiting on my apprisial and this is the nightmare I have been having for a week now. I don't have an answer for you other than to tell your relator that if they want a sale, they are going to have to lower the price, that you aren't negioating.

I am undercontract. The house started last March at 209,000 In June went to 199,000, In Sept, went to 179,000 and went to 159,000 this past January. I gave them full price in exchange for paying 4% of closing which is most of it.  I am on pins and needles waiting....

[ShanetheMortgageMan]

FDIC did already take over, so not sure what the significance is with the April 15th date.  I know that OneWest Bank FSB just recently took over from the FDIC - perhaps that is what is happening to your sale.

http://www.indymacbank.com/bankauto/content/eng/OWB_Customer_FAQ.pdf 

[dannyz21]

Thanks for the opinions.  Hopefully we can make this work. I doubt that the bank would be able to get more than the $226k if they chose not to come down on the price, but who knows.   If not, then back to house hunting. 

[dannyz21]

Got word from my agent that the bank lowered the price to $226k and extended the close deadline to April 22nd.  I guess I lucked out. 

Thanks for everyone's opinions.

[debc]

Yes, you did get lucky. I am beginning to think its better to deal with the bank than an emotionally attached builder or owner! Our first contract fell through because the appraisal came back 20,000 less than offer, house has been empty for 2yrs and is new. Builder said no. Now we are under contract and found out today from lender after speaking to the appraiser (same one from the first one, great) that he really doesnt think this property will come in close at all, 239900, he is thinking off the cuff, 200000. Believe me, I dont want to pay more than the property is worth, actually, I wont, but come on we need a break here. Our realtor contacted the sellers agent and asked for her to be frank with her clients about what is about to happen and are they going to be open to a much, much lower price....cross everything!