Tony Iagnemmo, Home Seller in Urbanna, VA

I negotiated a contract for a short sale. The bank has asked the sellers for an update financial report and want another aprasial.

Asked by Tony Iagnemmo, Urbanna, VA Sun Feb 24, 2013

Is it normal for a bank to update the buyers financial status & have another aprasial done before settlement?

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That is absolutely normal. Again, from the answers below, the Bank is simply making sure that the Seller is in a financial situation to warrant them (The Bank) to take a loss on the property. If the Seller has assets that can offset the loss to the Bank, they will go after them for that. The Bank can do as many Appraisals and BPO's as they feel necessary.

Daily negotiating is what it takes. We close or Short Sales within 90 days. It doesn't take forever, it just takes a good listing team to get it done!
0 votes Thank Flag Link Sun Feb 24, 2013
During the course of the short sale it is routine to have to send monthly bank statements and financial information to the negotiator. And if it has been more than 3 - 6 months since the original appraisal the bank routinely requests another valuation.
0 votes Thank Flag Link Mon Feb 25, 2013
Typically Lenders update valuations every 90 days, with values appreciating at such fast pace they may order them more often and usually order more than one report.
0 votes Thank Flag Link Sun Feb 24, 2013
Hi Mary,

It is perfectly normal for the bank to request updated financial information and request another appraisal especially when the transaction has taken an extended amount of time. Appraisals are only good for a certain number of days and of course a buyer's financial situation could change during the course transaction period.
0 votes Thank Flag Link Sun Feb 24, 2013
Short sales have nothing normal about them. Some short sales fall apart the day of closing.
Web Reference: http://www.GetSoldOKC.com
0 votes Thank Flag Link Sun Feb 24, 2013
Thank you for your reply.
Flag Sun Feb 24, 2013
Yes it is.COMMON.
If more than a few months have passed they will require new sellers financials AND for an opportunity to 'RAISE THE PRICE' if the market is improving in your area.
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You have posted that the bank is wanting both the seller and buyer financial. THAT would be unusual, but in short sales, there exists an illusion of rules but anything can and does happen. If you don't like what the 'bank' is doing, your only option is to withdraw.
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Don't expect normal.
Don't expect good faith.
Don't expect common sense.
Don't expect anyone to care about buyer issues.
Don't expect logical, linear process.
If you want to buy or sell a short sale. expect a miracle.
Miracles are not discounted and take an eternity.

Best of success to you.
0 votes Thank Flag Link Sun Feb 24, 2013
Yes, banks do not have to agree to a short sale and they do not want to allow the owner to force them to lose money if the seller has other assets. If they have other assets the bank can say NO DEAL and you might not even know it for months as you wait to see if they agree or not. Welcome to the wonderful world of short sales. They are guaranteed to be frustrating.
0 votes Thank Flag Link Sun Feb 24, 2013
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