Home Buying in Miami>Question Details

Linda, Home Buyer in Miami, FL

Can a bank raise the price of a short sale property after a contract has been accepted due to an appraisal?

Asked by Linda, Miami, FL Wed Nov 25, 2009

Help the community by answering this question:

Answers

8
Linda,

Normally the appraisal or BPO would have been done previous to then bank accepting the offer so that is high suspect. With that being said, if you read the banks contract's carefully you will probrably find that their contracts are very one sided and they can do anything they want including drop your contract and go after another offer. Almost all of their contracts state that, so be very careful with the bank contracts and try to close as soon as possible so they don't excersice any of the crazy clauses they have.

Javier Olmedo, ABR, GRI
Florida Realty of Miami
javier@olmedohomes.com
Direct: 786-395-6986
Web Reference: http://www.olmedohomes.com
0 votes Thank Flag Link Sun Dec 20, 2009
I have never heard of bank increase list price of home AFTER an executed contract has been accepted by all parties. However banks work within their own world.

Lender would all ready know value of home prior authorize seller for a short sale.

However lender would not know what appraised value would be those are your lender records.

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911

http://www.lynn911.com
0 votes Thank Flag Link Fri Nov 27, 2009
As a professional experience last week, yes. Why? if you don't close date bank establish in a Letter of Release Lien all cost in the seller side could rise. This situation is like a reaction on all numbers especially in the net bank is looking for. If you want to continue in the deal you have to paid the different to close.

If you need more information, please contact me at 305 519-3199
Nereida Figueroa
Realtor Associate
Short Specialist
Reo Specialist
0 votes Thank Flag Link Fri Nov 27, 2009
absolutely...the bank's goal is to preserve their assett...the more they get from the short sale the better their bottom line.
0 votes Thank Flag Link Wed Nov 25, 2009
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Yes.
A short sale, as you know, is when the owner owes more on the mortgage than the home is worth. The house is listed for sale at a price that SHOULD be fair market value. When an offer is tendered, the bank is going to research that offer by obtaining Broker Price Opinions (BPO's) from local Realtors, and sometimes an appraisal. If the price indicated by either or both of these options is higher than the offer price - meaning that the fair market value is higher than is being offered, then the bank will counter at a higher price to raise their net for the property. Having said that, I will also say the following: If the appraisal does not truly reflect market value - not an uncommon occurrence - then your Realtor should be able to challenge the value.
Web Reference: http://www.myriamsHomes.com
0 votes Thank Flag Link Wed Nov 25, 2009
Hi Linda,
I am going to be honest and say I am not 100% sure, but I believe the bank can do whatever they wish within the language of the contract written. Since I have not seen the contract I cannot say for sure.

The short sale itself means that the bank is taking less than what is owed on the note. When an offer is submitted they generally have to have all of the paperwork in order for the owner asking for the short sale and then the financing in place for the new buyer.
So, yes I am going to say that the bank holds all of the cards, and the value of a property may be higher than the original agreed upon price. If you did not receive a signed letter of acceptance FROM THE BANK, it was not a signed contract. You may have a signed contract by the ower saying they are going to submit the offer to the bank, that is only the first step.

The final acceptance of contract is from the bank and that may be where you are seeing a counter-offer from the bank based on their appraisal.

It is hightly reccomended that you have an attorney helping you with a short sale because of the details involved.
I hope that helps and good luck,

Beth Jenkins
South Florida Brokers
786-374-4778
Web Reference: http://www.arealtyteam.com
0 votes Thank Flag Link Wed Nov 25, 2009
The question I have is: who accepted the contract? was it the homeowner? usually a contract is prepared prior to thh banks approval , appraisal or a BPO ( Brokers price opinio) so yes they may ask for a higher price if the appraisal came back higher then the contract price.
On Your Team. http://www.irenapopilevsky.com
0 votes Thank Flag Link Wed Nov 25, 2009
No, because the appraisal or agent BPO was completed before they accepted the short sale price.

To be sure, please seek the advice of a Real Estate Attorney.
0 votes Thank Flag Link Wed Nov 25, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer