Home Buying in 86442>Question Details

Wendy, Home Buyer in 86442

After 10 long months of being in escrow for a short sale and having been approved for 110k, we signed paperwork to close escrow twice for 110k

Asked by Wendy, 86442 Mon Apr 19, 2010

and had to wait a few days to find out whether we'd be approved by the seller's bank for an ext because we had passed the closure date by one extra day. Now, the seller's bank, indymac, performed 2 bpo's in the final weeks that both still came out to 110k and we were told to wait 10-14 days for approval/denial. Prior to this, the appraisal that we paid for on our own came out to 150k but our loan officer specifically told us that indymac did not need to know this and that we would still be approved for 110k. Well, we now find out that our loan officer sent this info to indymac because they requested it (without our knowledge) and now at the last moment they are requesting for us to either offer at 150k or walk away. I am devastated because it is more than we can afford and i feel that our loan officer failed us. Do we have any rights as buyers? Can indymac do this, use our appraisal against us when they kept telling us the BPO's were approved for 110k both times?

Help the community by answering this question:


Who paid for the appraisal? If you did indymac had no right to give the appraisal without your permission
0 votes Thank Flag Link Tue Mar 5, 2013
I once dealt with Indtmac, and they are hard to deal with, I do not recommend them. I also think, it was wrong for someone to send your own private appraisal ti them. You may have legal rights. Another thing, to tell you the truth is short pays are dificult, and I recommend my clients look at foreclosures instead, and they usually get a better price. Good luck to you.
0 votes Thank Flag Link Fri Apr 30, 2010
Oh Wendy,

I'm just so sorry! One thing I would suggest is to talk to a few lenders. There might be other programs out there, I'm not sure this lender has done you any favors. It's just so sad....but I also think you might find that prices level out and perhaps even drop once the tax credit expires on April 30th.

I wish there was something to say to make you feel better.

0 votes Thank Flag Link Tue Apr 20, 2010
Well, we are going to see if we can go forward with this at 150k. I went to my lender's office today to see if I would still be approved for 150k and he stated that I wasn't eligible anymore because the "guidelines have changed" based on my gross income and how much they are considering can be used towards the house which used to be at 55% and recently changed to 43%- I will more likely qualify for 130k at best. He is now considering looking at my fiance's income to see if this might bump it up but it's not a sure thing because his credit's not that great. So now we're looking at possibly not qualifying and going back into a market that is not favorable for us. I called a few law offices including a pro bono that I did not qualify for and they seem to generally cost too much. I will just have to wait and see and give into what they tell me since they will take no counter offers. Very sad right now. Thanks for all your advice and I appreciate any more advice from anyone at this point.
0 votes Thank Flag Link Tue Apr 20, 2010
What a mess.

You paid for the appraisal, you did not authorize it to be sent to the lender, I would definitely want to talk with an attorney about this. Breach of client confidentiality IMHO.

The only reason that the appraisal would ever be sent to the lender would be if you backed out because it came in low.

0 votes Thank Flag Link Tue Apr 20, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
Hopefully your agent wasn't the listing agent. If that's the case you may have a legal case worth contacting an attorney for. Either way neither your lender nor your agent has the right to contact the seller's bank. The bank that holds the mortgage is VERY strict with who they discuss the file with and it is highly unlikely unless your agent is also the selling agent that they had any contact with the bank that holds the note. You should follow through with contacting an attorney that is not associated with your agent's brokerage in any way and discuss your case in detail. They are the only one that can give you legal advise. Sounds like your situation was mis-managed and that is unfortunate. It is advisable for you to give your best and final offer, whatever it may be, in writing and let the bank decide if they are going to take it or leave it. It is highly unlikely that they will leave it given how long it has taken to get through the process. Banks do not want to sit on assets that could very well keep depreciating. If someone is telling you that they are asking for 150k "take it or leave it" make sure that is in writing too. Something smells fishy, proceed with caution.

Best of luck,
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Tue Apr 20, 2010
HI Wendy,

This is a mess all the way around. First, there was no reason for you to spend the money to do an appraisal before you had short sale approval in writing, so not sure why your agent even allowed the lender to order one, nor why the lender would order one. I never incur any costs for the buyers until we have written approval. And the lender and agent work for YOU not the bank.

There is no contact between the short sale lenders and your lender. When the sellers initiate a short sale, they have to authorize who these lenders can talk to....and even the buyer's agent is normally not allowed on that list, so your lender definitely should not be....something is NOT right.

I think you are right to question that....but also, short sale lenders are not required to approve a short sale based on their BPOs, they use that as information, but sometimes it helps them understand the risk if a short sale does not go through too. Many lenders have a strict guideline of loss...say 10% if it's a second, or 85% if it's a first...just depends.

0 votes Thank Flag Link Tue Apr 20, 2010

A lender,especially in a short sale situation, can dictate anything they wish- even at times when it seems against better judgment. It is the lender that is taking the loss.
0 votes Thank Flag Link Tue Apr 20, 2010
Well, as far as i know, my agent told me that my loan officer had sent them the appriasal and when i spoke with him last, he stated that he did (actually a while back, not recently) send it to them and I asked him why he told me before that they did not have to know for which he replied, i don'g really know if they have to know or not, basically backing out of that statement. I did also try to counter offer for at least 130k, told this to my agent, my agent then informed the seller's agent and I believe communicated that with indymac and they are not accepting any less than 150k at this point, take it or leave it. So, I am actually going to be seeking a real estate attorney, I hope that we have a valid case. Wish me luck! I appreciate any more advice that I can get on this...
0 votes Thank Flag Link Tue Apr 20, 2010
A short sale lender can ask for whatever they want to minimize their losses...even ask for more then thier bpo's came in at. Continue to fight it and have your agent (if you are working with one) go back to whoever is negotiating with the bank and see what can be done to bring it back down to $110K. Just because they are asking for $150K doesn't mean you can't counter with a lower offer and justify it.

What I don't get is why or how did your loan officer give them your appraisal. How did they have contact with your loan officer? The lender would only comunicate with the seller or an authorized third party.
0 votes Thank Flag Link Mon Apr 19, 2010
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