Angelica, After reading Lynn911's response (National Featured Realtor and Consultant, Mortgage Loan Officer,Credit Repair Lecturer), I had to write for the first time. If I understand your offer it is for $170,000 with $100,000 down, a mortgage for $70,000 and you got back a $150,000 appraisel. If it was a FHA or VA offer, they have an addendum clause that says the buyer does not have to go through with the sale if the property doesn't appraise for the purchase price but they can if they have enough additional funds of their own to pay the difference and are made aware of the appraised value. In 42 years of selling real estate, I've never seen a conventional mortgage have that escape clause. It is going to depend on the financing clause in your purchase agreement but our boards, and all I've seen,
say the purchase is contingent upon getting approved for a loan of X anoumt and say nothing of appraised value. As long as the appraisel is above the mortgage amount and minimum down payment necessary and it is not a goverment loan and the buyer has the additional funds, every lender I'm aware of will make the loan. "Your buyer can't purchase a property over valued their lender won't allow it take place"!!!!! (Lynn911's sentence structure). Has she not heard of the mortgage crsis we are in and how the lenders looked after the buyers?
That being said, you can try to use the appraisel to renegotiate with the seller and hope you get someone who is also trying to do three businesses at once and went to one of her lectures! Does her consultation of "Sure they can cancel at any time" include as "long as they are willing to forfeit their deposit" and /or consulting at the trial for specific performance?
The previous four responses were in line "Check with your Broker" and attorney.... more
I don't see anything in your question that makes this deal an REO. So assuming that it is normal purchase many good listing agents will ask the buyer to double app in these uncertain times.
It is actuall a good practice for the listing agent and goes a long way to protecting the seller. Does it hurt the buyer? It shouldn't and if the sellers preferred lender is straight it should be competative. The cost of money is the cost of money. The variations is in the fees to the lender.
If the buyers lender performs then no problem but if for some internal reason they back out at the last moment the seller still wants to close and so should the buyer.
Thnking it through if there is a spread between the buyer's lender and the seller's lender with the buyer's lender offering a better deal it is more likely that the buyer's lender will faill to perform.... more
Check the property, it may have something posted on it with this info., I have seen some asset (REO) company do this. You may also check with the recorders office for the city it is in. You may also try to go back to the agent and ask specifically why the offer was rejected, and they may tell you.... more
With multiple offers received, sellers may not want to see all of them and the listing agent will only submit the best and highest. Some of listing agents will notify that they got the offer and let you know if the offer is accepted or rejected or submitted to the bank, but some will just not even bother telling you. Just continue making many offers until you get one -- And make a good offer!!!... more