Saleswarden - this is all dependent on the exact purchase and sale agreement in place between the two parties and the specific provisions related to the appraisal contingency that is apparently in place, doesn't it?
"Bad" appraisal . . . Hank said it best: "The sniveling by most agents about this is due to ignorance of the process. If agents would take the time to grab a class or two and stay current on things then maybe they would do better with values. The best way to avoid issues is to be well prepared, something that seems not to have happened with Saleswarden."... more
Justmare, many consumers are finding that there homes cannot be refinanced because their homes value has decreased. If you purchased your home in August of 2007, you literally paid at the top of the market and I can assure you that your value has decreased by at least 20% based on what is happening in the area.
Secondly, upgrades are not itemized in an appraisal. Homes are given value based on condition such as poor, average, above average, and excellent. The more upgrades the higher the level which means the higher the value. But lets talk upgrades. Granite is a standard and no longer considered an upgrade. Hardwoods are a standard and not really considered an upgrade. Crown molding is really considered a standard these days... not quite sure what inside and out means. Composite decking... I guess you are referring to the non-rot decking materials. That would be an upgrade but an upgrade that would help your home sell not necessarily add value on an appraisal.
Hank is 100% accurate as he should be since he is a licensed appraiser. A ranch on a basement is a one story. Finished square footage below grade is not as valuable as square footage above grade. If the basement is unfinished then the added value is not significant. Septic would actually be a negative. You have marble bathtubs? Your home is a framed home with hardi-plank so you may be misunderstanding the appraisal.
When a home has a few acres the land adding value to the bottom line is determined by what can be done with the land. Meaning could it be divided and sold as lots, etc.
Because there are so many foreclosures and other distressed properties the appraiser cannot ignore them as comps. They have to stick with the most recent sold comparables. Just as if you were to sell today these same comparables would affect your market value.
I would take Hank up on his offer to run the numbers for you.
Other than that, you can ask the bank if they could obtain a second appraisal at your expense; however, the underwriters may not take into consideration another appraisal. Get Hank's answer and if Hank feels it would appraise for more than you could always choose another bank to refinance through.
No 100% financing... You can go 97% with FHA or even conventional with borrower paid PMI. If you go 5% down with seller concessions then you can get lender paid MI for a slight hit to the rate.
As with regards to BK's... Out of 7 is over 2 years unless an Accept or Approve response is received from the Total Scorecard. Ch 13 is 1 year with approval.
Hardships are considered...
Borrowers with a previous foreclosure will not be eligible for FHA financing if the foreclosure occurred within the past three years, unless an Accept or Approve response is received from the Total Scorecard.... more
Yes there are still programs for you. You need to call at least three different lenders and see what programs each have for you. Compare the programs and go with the one that fits you best. With a 650 score you won't get the best and lowest interest rate but you should get a good interest rate on a 30 or 40 year fixed. Pine State Mortage Corp., Wells Fargo, Colonial Bank , SunTrust Bank are just a few really good Mortgage companies to consider. Good Luck. Peggy Hatley GRI... more