Denise,

This is becoming very common as the RE market continues to adjust.

There are two necessary routes for you to take. First, thoroughly review your contract. This should be covered in the terms of financing portion of the agreement.

Secondly, refer your situation to a real estate attorney for their recommendation. Their insight should create a cleare path for you, hopefully one that will protect your best interests.

Good luck

Hi Denise-

Seeing there were already two appraisals done and it sounds like the home didn't appraise out, you need to contact a real estate attorney to review your contract. Builder's contracts are different. The attorney will let you know what your options are and what contingencies are on your contract that apply to financing.

I hope this helps and good luck!

Denise,
I agree with Nichole on this, you should have a valid means to get out of the contract if you cannot get approved for the loan. I imagine the contract is a builders contract and the do vary so this is something for your attorney to look into. As Nichole also mentioned if you are working with a Realtor they could perform a CMA not only to look at the property value to see if you overpaid but if the Realtor's CMA comes back higher this can be another reference for the lendor to look at.
As a Realtor in the Plainfield area and having worked with several builders in the area I might have some useful insight for you.
Larry Ulfig
REMAX Professionals South
630-215-4718

HI DENISE,
YOU WILL HAVE TO CONTACT YOUR ATTORNEY BUT I AM SURE HE/SHE WILL BE ABLE TO HELP YOU IN THIS SITUATION. I THINK YOU WOULD HAVE SOME RECOURSE. BANK FUNDING IS SUBJECT TO THE APPRAISAL COMING IN AT THE PRICE YOU OFFER AND BANKS WILL NOT LOAN MORE THAN WHAT THE PROPERTY IS WORTH. DO YOU HAVE A MORTGAGE CONTINGENCY?

ARE YOU WORKING WITH A REALTOR? YOUR REALTOR WOULD HAVE BEEN ABLE TO HELP YOU DO A MARKET ANALYSIS OF THE AREA TO ADVISE YOU AS TO WHETHER OR NOT THE PROPERTY WAS WORTH WHAT YOU WERE OFFERING.

IF YOU NEED ANY ASSISATANCE I WOULD BE HAPPY TO HELP YOU IN ANY WAY I CAN. I AM ALSO VERY FAMILIAR WITH PLAINFIELD.

THANK YOU,
NICHOLE LATHUS
MCCOLLY REAL ESTATE
708-646-6533 (DIRECT)
708-802-9900 (OFFICE)