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Message
2
Posted on 6/1/16 at 6:39 am to Cooter Davenport
quote:
Get on your loan officer's arse. Get your realtor to get on the loan officer's arse and threaten to not have his clients come to him. I'm serious. Worked for me. The loan officer can make things happen with underwriting. Don't listen to people here who say otherwise. I know for a fact. My situation was not related to an appraisal - I had an underwriter who was requiring all sorts of garbage from an employer that wasn't going to be resolved in time for us to close. Started calling and yelling, it got taken care of and the need for said paperwork was rescinded. You have to be pushy and mean and an awful person to get anything done anymore. Sucks, but that's modern life.
The first line in OP's posts clearly says the Buyers underwriter thinks appraisal is too high. That would only make him the seller by my estimates. This would make your entire post irrelevant.
His best option is to have the buyer switch lenders if this guy can't underwrite the loan or secure another buyer for his property. The buyer is going silent if he feels he won't lose the house over this and potentially save some money if seller caves.
Seller has choice to either let this play out or posture up and submit in writing to buyer that house has appraised for the asking price, he will not accept any lower than agreed to price due to one rogue lender and if buyer wants to move forward, switch lenders or walk away.
This has to be a FHA/VA or Rural, reeks of USAA as well.
Posted on 6/1/16 at 7:20 am to ItNeverRains
I initially glanced over OP was the seller. He is upset that they are questioning his value; I get that. However, his realtor has nothing to do with the buyers scenario unless the realtor is affiliated with the mortgage broker, etc. I can understand the buyer's lender questioning the value and it should be obvious why. This is standard procedure in many large lending company scenarios. As a broker, I've had it happen many times and it is usually an over-valued property that the realtor is pushing hard for. There is nothing anyone can do in this situation unless the buyer really wants the house and feels they are getting value. As a loan officer, I was usually torn in this situation. I wanted the deal to work, but I didn't want the borrower to get taken advantage of. This is a real sticky area, because the realtor/seller are the worst people to involve in this, just looks bad to the underwriter. Most buyers believe they are priced correctly. On a sale, a similar missed comp sticks out like a sore thumb. We always had issues with N.O, because the proximity of good and bad areas, and major land-marks or transitions (interstate, roadways, bridges, railroads). In this situation, if the buyer really wants it, the seller will be asking for him to move on to another lender or spend money. In my experience it will usually not end well, he should probably start showing the house to other people and adjust his price. If the buyer goes to another lender, they usually can see his multiple applications and they usually find the same issues. He would be best to move to a local bank or CU.
Posted on 6/1/16 at 8:10 am to TDsngumbo
quote:
My buyers' mortgage underwriter thinks the appraisal on my home is too high and now they're requesting a review of the appraisal. My realtor submitted statements and information to back up why the appraisal is correct but they're wondering why a certain home in the subdivision (which sold in December 2015) isn't included on the appraisal. It sold for considerably less than all other homes in the subdivision in the last few years.
The realtor told me he thought it was just a formality on the underwriter's part and that it should be resolved after he submitted the info that he did. However, it's been almost a week now and still no word. Closing is set for right around the corner and now I'm thinking that's going to be pushed back.
Has anyone ever had to deal with this situation before? If so, what's the process and how long does this typically take? I'm getting very anxious.
Just sit back and relax, this will resolve itself or not, if not just decide what you would like to spend the buyers earnest money on. This ain't your problem.
Posted on 6/1/16 at 8:10 am to TDsngumbo
Dp
This post was edited on 6/1/16 at 9:01 am
Posted on 6/1/16 at 8:40 am to cave canem
Maybe when he/she reviewed the other available data it had he/she questioning the appraised value.
Collateral Underwriting is a very scary thing. It is kind of crazy to think how much data has been gathered from all the appraisal reports issued over the last several years. I went to a conference last year and the primary focus was on explaining how small errors on things like condition/age/quality adjustments on comparables within a report will effect future appraisals on property located within the subject properties neighborhood.
Collateral Underwriting
Collateral Underwriting is a very scary thing. It is kind of crazy to think how much data has been gathered from all the appraisal reports issued over the last several years. I went to a conference last year and the primary focus was on explaining how small errors on things like condition/age/quality adjustments on comparables within a report will effect future appraisals on property located within the subject properties neighborhood.
Collateral Underwriting
Posted on 6/1/16 at 9:11 am to DieSmilen
I don't doubt a word you posted.
However none of that is the OP's problem. If this is a normal transaction an offer was made and earnest money paid conditional of appraisal. The fact the buyer is unable to secure financing is not the sellers problem.
As the owner I would stay out of this and let it play out how it will. JMHO
To the buyer I would request another appraisal by a third party at the underwriter's expense if they have issues with the veracity of a certified appraisal. If they refused I would find a new mortgage broker ASAP.
Every person involved in this transaction is being paid by the buyer, they defacto work for him/her, always keep that in mind.
However none of that is the OP's problem. If this is a normal transaction an offer was made and earnest money paid conditional of appraisal. The fact the buyer is unable to secure financing is not the sellers problem.
As the owner I would stay out of this and let it play out how it will. JMHO
To the buyer I would request another appraisal by a third party at the underwriter's expense if they have issues with the veracity of a certified appraisal. If they refused I would find a new mortgage broker ASAP.
Every person involved in this transaction is being paid by the buyer, they defacto work for him/her, always keep that in mind.
Posted on 6/1/16 at 10:41 am to StanSmith98
quote:
zillow is not a good site to determine appraised values!
Zillow is horrible. They have my house listed at 65K below the appraised value.
Posted on 6/1/16 at 6:13 pm to StanSmith98
quote:
zillow is not a good site to determine appraised values!
quote:
StanSmith98
Stan, my point in listing them was to show just how easily you can find basic data. It wasn't to say this data is reliable. I am fairly well versed in real estate finance and the various aspects that play a part in it.
Posted on 6/1/16 at 7:11 pm to tiger94gop
quote:
I initially glanced over OP was the seller. He is upset that they are questioning his value; I get that. However, his realtor has nothing to do with the buyers scenario unless the realtor is affiliated with the mortgage broker, etc
I know this.
quote:
I can understand the buyer's lender questioning the value and it should be obvious why. This is standard procedure in many large lending company scenarios. As a broker, I've had it happen many times and it is usually an over-valued property that the realtor is pushing hard for.
Broker as well, never had underwriter go over an appraiser head to squash a deal. Guess i'm lucky.
quote:
As a loan officer, I was usually torn in this situation. I wanted the deal to work, but I didn't want the borrower to get taken advantage of.
If the appraiser finds the value in the property, no one is being taken advantage of.
quote:
This is a real sticky area, because the realtor/seller are the worst people to involve in this, just looks bad to the underwriter. Most buyers believe they are priced correctly.
Especially when the appraiser confirms it.
quote:
On a sale, a similar missed comp sticks out like a sore thumb. We always had issues with N.O, because the proximity of good and bad areas, and major land-marks or transitions (interstate, roadways, bridges, railroads)
No knowledge of that market so I take your word for it. Our appraisers here in middle TN, especially Williamson County, don't have those intangibles.
quote:
In this situation, if the buyer really wants it, the seller will be asking for him to move on to another lender or spend money. In my experience it will usually not end well, he should probably start showing the house to other people and adjust his price. If the buyer goes to another lender, they usually can see his multiple applications and they usually find the same issues. He would be best to move to a local bank or CU.
Completely agree. Local lenders know the market better than big box national lenders, in my experiences have same if not better rates, and way less red tape.
Posted on 6/4/16 at 4:15 am to TDsngumbo
Updated OP
Posted on 6/4/16 at 3:26 pm to TDsngumbo
I am little confused with the update. Are they ordering a standard 3 review of the report that was issued? Are the ordering an update to the report that was issued? I am surprised they didn't just order a new appraisal.
Posted on 6/4/16 at 4:07 pm to DieSmilen
New appraisal makes more sense. Your buyer appears to have a turd clogging the pipes on his financing end. Whether it's in the form of the loan officer, his supervisory or branch management staff, the Underwriter or just the lender they are trying to run the paper through, a delay like this is something I'd be bending over backwards for if I were a Broker or Loan Officer...and if I were you I'd grab a Snickers.
This one mayyyyy be awhile...
This one mayyyyy be awhile...
Posted on 6/4/16 at 4:44 pm to GFunk
IF you are in a sellers market my advice is tell buyer to switch lenders or walk away. If you think this buyer is the best you'll get for forseeable future, try to encourage him ($1k off sales price, leave furniture, hand job) to switch lenders but be prepared for a circus should he object. I am guessing you are out of compliance with all timelines regarding the contract so you can come out clean no harm no foul if you return earnest money.
Should you go the walk/switch lender route, I'd call and get this guy's NMLS number and file a report detailing their behavior. From your side of the story its definitely worth noting. All this over one comp from last year seems retarded, but again, I don't know your market.
Good Luck
Should you go the walk/switch lender route, I'd call and get this guy's NMLS number and file a report detailing their behavior. From your side of the story its definitely worth noting. All this over one comp from last year seems retarded, but again, I don't know your market.
Good Luck
Posted on 6/4/16 at 7:26 pm to ItNeverRains
A review will not turn out well. There is no incentive to meet the value. Depending on the final number your buyer may be having to come with more money. He will also have to pay for the review.
I would suggest he move to a local bank or CU. It will change his whole deal and possibly his rate. The biggest part of this is containment of original deal info to new lender. There may also be an issue of appraisal release.
If he has paid for anything he may hold steady and continue with the sale through a new lender. However, if this is limited money down, rural, FHA, etc., you may want to tell your realtor to start showing it again. I have seen this happen before and the deals didn't close. Created bad feelings all around. His UW doesn't care so, my experience says put the onus on the buyer, but I would start the process of finding another.
I would suggest he move to a local bank or CU. It will change his whole deal and possibly his rate. The biggest part of this is containment of original deal info to new lender. There may also be an issue of appraisal release.
If he has paid for anything he may hold steady and continue with the sale through a new lender. However, if this is limited money down, rural, FHA, etc., you may want to tell your realtor to start showing it again. I have seen this happen before and the deals didn't close. Created bad feelings all around. His UW doesn't care so, my experience says put the onus on the buyer, but I would start the process of finding another.
Posted on 6/5/16 at 7:07 pm to tiger94gop
OP 3 questions:
1.) how many true comps have sold since Dec 2015
2.) what kind of difference are we talking about? $10,000 on a 300k house or more like 100k on a 200k house?
3.) can you find a reasonable reason for the difference in sales price?
The tricky thing about comps is there easily could of been something like termite damage in a pre-foreclosure property that never made it to foreclosure because an investor bought it that is throwing the comps off. It could also be a terrible lot, super outdated, etc. I'd do 30 mins of research, heck go talk to the people that live in the Dec 3015 house to see why they got a 'deal'.
1.) how many true comps have sold since Dec 2015
2.) what kind of difference are we talking about? $10,000 on a 300k house or more like 100k on a 200k house?
3.) can you find a reasonable reason for the difference in sales price?
The tricky thing about comps is there easily could of been something like termite damage in a pre-foreclosure property that never made it to foreclosure because an investor bought it that is throwing the comps off. It could also be a terrible lot, super outdated, etc. I'd do 30 mins of research, heck go talk to the people that live in the Dec 3015 house to see why they got a 'deal'.
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