Foreclosure in 94404>Question Details

Jaime Shiver, Home Buyer in North Carolina

I bid on a HUD home.

Asked by Jaime Shiver, North Carolina Mon Apr 2, 2012

Hud accepted the offer. I wrote a check for 425.00 appraisal. Then I was told the loan amount can't exceed the appraisal amount, and that I would have to retract my bid and bid again. I got approved the 2nd time, but the realtor didn't get my earnest money to HUD the next day and my bid was void and the house was put back on the market. I bid a 3rd time and was outbid. I got all my earnest money back, but am I entitled to get a refund of the appraisal money?

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Rene' De Blanco, MBA’s answer
Have you considered a HOMEPATH property? The best part of a HOMEPATH home is you can put as little as 5% down, AND there is NO mortgage insurance.

Hope this helps!

Rene Joseph De Blanco
0 votes Thank Flag Link Mon Apr 2, 2012
Dear Tommy77,

Normally upfront payment cannot be reimbursed even though the transaction falls through. However, I am not sure exactly what happened in your 2nd bid so not in a position to comment further. You better check with your agent regarding this.

Best regards,
Suena Suen, CDPE, GRI
Realty World Advance Group
0 votes Thank Flag Link Mon Apr 2, 2012
Most likely no but you could try to recover it from teh agnet who did not get your check in time, no excuse for that, good luck working things out
Web Reference:
0 votes Thank Flag Link Mon Apr 2, 2012
I'm sorry to hear that Tommy. It sounds like this home wasn't meant to me. Once the appraisal was done, you paid for it, and it doesn't matter whether it comes in at value or not.

When the appraisal came in below the loan amount, did your agent ask for a price reduction?


0 votes Thank Flag Link Mon Apr 2, 2012
I would imagine the appraisal was done and so there won't be a refund. I would have thought HUD already had an earnest money deposit from you from the first offer. Maybe there was a long period of time between all these offers where they sent you back the earnest money you sent them.
0 votes Thank Flag Link Mon Apr 2, 2012
Unfortunately you most likely don't stand a chance of getting reimbused for the appraisal expense.
0 votes Thank Flag Link Mon Apr 2, 2012
Thanks for responding! I did everything I was asked to do in this deal, does it seem unusual that I was told that the loan amount can't exceed the appraisal amount and that I had to bid again? Was that a mistake that the lender didn't already know that?
Flag Mon Apr 2, 2012
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