Home value came in 8,000 less than what we need :(

[Tpelc23]

Have a call into the realtor, not sure what we do now. This stinks.

[sewmuchdebt]

you should be able to ask seller to come down to appraised value.

[Anonymous]

We have the appraisal ordered and should happen next week... I'm really worried the same thing is going to happen to us...

[ReBuild-OH17]

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@sewmuchdebt wrote:

you should be able to ask seller to come down to appraised value.

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+1. I believe your options are to either ask the seller to come down on the price or pay the 8grand out of pocket.

[StartingOver10]

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@Tpelc23 wrote:

Have a call into the realtor, not sure what we do now. This stinks.

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Well, if you are the buyer you can do several things: 1) negotiate the contract price to the appraised value or 2) bring additional cash over the appraised amount to closing (not recommended in this market) or 3) a combination of 2 and 3 or 4) cancel the purchase and get your EMD back.

You are the buyer. You are the one that has the "power" in this deal. There is no reason that you and your agent shouldn't be able to re-negotiate the shortage on the appraisal. Is this a short sale or a regular sale or an REO? If its a short sale or REO the renegotiations are a slam dunk unless the appraiser made some sort of obvious mistake. If it's a traditional sale, then you may have slightly more difficulty.

Now, if you are talking about a refinance, that is a horse of a different color. You would need to bring the shortage in cash to the closing unless you are doing an FHA streamline refi.

I made an assumption that you were purchasing a home. Please correct me if I am wrong.

[Tpelc23]

It is an reo. We are hoping they will come down by 8 grand or split the difference but we dont really want to do that

[StartingOver10]

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@Tpelc23 wrote:
It is an reo. We are hoping they will come down by 8 grand or split the difference but we dont really want to do that

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If your agent provides the appraisal to the listing agent showing the $8k shortage - the listing agent will get it to the asset manager and they will most likely drop the contract price to meet the appraised value. It depends upon the asset manager. You really should be in very good shape to get the reduction in price.

[boomhower]

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@StartingOver10 wrote:

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@Tpelc23 wrote:
It is an reo. We are hoping they will come down by 8 grand or split the difference but we dont really want to do that

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If your agent provides the appraisal to the listing agent showing the $8k shortage - the listing agent will get it to the asset manager and they will most likely drop the contract price to meet the appraised value. It depends upon the asset manager. You really should be in very good shape to get the reduction in price.

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I agree.  Unless they want to sit on until the market gets better(heaven knows how long that will take), then they will drop it to market value.  Being REO they know no one is going to loan on more than the appraised market value. 

[Tpelc23]

Thanks guys!! Hopefully we will find out Monday. The house was listed for 112,000 but our loan was set to be $116,700 as we are rolling in closing cost and the seller agreed to pay $3501.00 of the closing cost. So even at the original price of $112,000 the appraisal came in $4,000.00. I wonder if they are going to want us to come up with more of closing cost instead of rolling them in. We can come up with the $3,501.00 in closing cost, but we really hoped we could roll them in. The house is owned by Wells Fargo

[Booner72]

I heard recently that the appraisal sticks with the house for six months so the bank will have to disclose that amount to all buyers, they are this far into it with you, I'd bet 2 bucks that they lower the price to close the deal.  Won't that be awesome for you?  Fingers crossed!