Licensed Real Estate Agent
Century Homes Realty Group llc
Direct Line: 347-932-0609
Since home prices have increased it would explain why the lender is not moving forward at the original accepted offer. Look at the recently sold prices of homes in the area you're buying and see how far your offer is from those prices. You will most likely have to pay more than your current offer or may get lucky if you can dramatically change your terms to an all cash offer.
There's so many things I want to say here but don't have time to write it all. You can call me if you want at 646-321-9649, I'm local and I specialize in short sales. Is the house in New Hyde Park? Since you have locked in your interest rate (and btw I wouldn't have done that before getting a short sale approval) what did your appraisal come in at? If favorable that can be forwarded to the bank which "might" have more bearings than the 13 comparables that were faxed in. If your bank won't tell you the appraised amount, for sure it came in higher than your offer so that's not going to help your cause. BTW, you paid for that appraisal and have the right to see it so demand it. In addition cost of home repairs with pictures (if the house happen to be in a less than desirable condition and location in New Hyde Park eg next to a gas station) and all the marketing efforts should be forwarded to the banks also. The banks depend on the opinion of the BPO and/or appraiserl that they hired and it's really going to be hard to compete with the results reported even if the appraiser is wrong. The listing agent should have been there when the BPO and/or appraisal was done to provide guidance to support the offer on the table but since that wasn't the case you will all have to work backwards. You are left to the mercy of the listing and the listing attorney to see what they can do, been there, done that seen it all. All the best.
When the bank comes back with an appraisal higher than your offer, they have determined that the house is worth more on the open market than you are paying for it. Whereas in a normal transaction this would be benenficial to you because you would be assured of receiving your mortgage, in a short sale the bank is trying to recoup every penny they can from the sale and they may be asking you for more money than you have contracted for. In a short sale, any contract is subject to the banks approval, meaning that they can ask you for more money in order for you to make the purchase.
It is possible that the real estate agents involved did not have an opportunity until now to present comparables - especially if it was a brokers price opinion (BPO) rather than a qualified appraisal. This is often done by banks involved in short sales since the cost of a BPO is less than that of an appraisal and the values are rarely provided to the buyer. Your best option is to speak with your attorney - hopefully he or she has developed a working relationship with someone at one of the 2 banks and will be able to negotiate the price back to your contract price if necessary or, at the least, determine the status of the sale at this time.
If the appraisal or BPO has come back indicating that the home is worth more than what your contract price is, and the bank rejects your original offer, your options are quite limited - you can pay what the bank is asking for or move on to purchase another home. Unfortunately, the banks involved can also require that everyone start at "square one" again and re-submit all paperwork with a new contract and new mortgage approval!
Unfortunately, short sales can become a mess - especially when more than one bank is involved - and can take a long time. I feel your pain but know that once you are in your new home, this one or another, things will calm down for you an you wil be able to move on and put this experience behind you.
Arlynn B. Palmer, ESQ, SRES, CBR, CMS, CNS
Short Sale Specialist
Senior Real Estate Specialist
Coldwell Banker Claire Sobel
What probably happpened is the bank ordered another BPO (broker's pricing opinion) instead of a typical appraisal. If that was the case, the realtors (the listing agent and the selling agent) probably weren't involved with that appraisal and weren't in a position to provide comps to the broker that did the BPO. If the bank is now saying they now want more money, you can either offer more money or probably get out of the deal. You should consult your attorney. When two or more banks are involved in short sales, it's usually a complicated mess to get both to agree to settle the matter. Sorry to hear you're having a hard time.
Certified Buyer Representative
Senior Real Estate Specialist
Century 21 Princeton Properties
Top 2% of Century 21 Agents Nationwide!