Asked by Ohio Realtor, Dayton, OH • Tue Apr 27, 2010
Appraisal is lower than contracted purchase price, but higher than loan amount stated in contract (a 72% LTV). Lender states the buyer can bring funds out of pocket to make up the difference between the appraised value & purchase price--buyer already plans to put down high down payment that more than covers the difference. There is a contingency on financing in the contract, but nothing that addresses the appraisal. Can the loan be denied? If the lender would be able to make the loan, can the buyer ask to be denied based on appraised value? If loan can be given, buyer must fulfill the contract, correct? Contract states the purchse is based on the purchaser's ability to obtain financing of the stated amount. Does this make sense? Shouldn't buyer be legally bound to move forward with the loan and the purchase? State of Ohio.
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