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.
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.
Best of luck,
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.
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.