Home Contract $100,000, but appraisal $80,000, if payoff for mortgage is $80,000, how to deal with closing and agent fees?

Asked by Hankw0o, 08034 Sat Mar 24, 2012

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7
Barbara Fitz…, , Turnersville, NJ
Wed Mar 28, 2012
Barbara Fitzgibbon-Broker-Associate, Turnersville, N.j, First, remember that an appraisal is 1 man oppinion.You can appeal the appraisal, ask your Realtor to gather all comps with in the last 4 mo. that would be somewhat comparable to your home. I think if you get some good info for them, most appraisors are willing to look at it and hopefully increase your value, if it's there. The last resort is, you would have to bring the difference to the table which unfortunately has been done many times recently. A short sale is a fairly long process and damages your credit for some time. If I can offer any help, let me know. Good Luck!
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Sun Mar 25, 2012
It sounds like you are trying to pay off a land contract to me. Either that or recently you offered $20,000 more than a home was worth and discovered when you tried to borrow money that it wasn’t worth the agreed to price.

If my first guess is correct you are not alone, all of the people I have spoken with over the past few years that tried to work around the system lost money. If that is what you did the first step is to speak with the seller, if your land contract is written in such a manner that you have personal liability you need them to agree to terminate the contract. If they do that you may have a tax liability so chat with a CPA before taking this step. If the house decreased in value that is unfortunate, if you over paid that is not uncommon. Either way if you are dealing with a private individual and have personal liability, play nice! You need their agreement to end the contract without financial injury. Good luck.
0 votes
Daniel, , Baton Rouge, LA
Sun Mar 25, 2012
cancel the contract fire the realtor who listed or had you agree to a home 20K above value
0 votes
Estelle Ratt…, Agent, Mount Laurel, NJ
Sun Mar 25, 2012
You may have to bring money to the table. You could ask the buyer to split the difference. Or, you may need to go for a short sale. Usually the bank will accept a lower amount and pay for the seller's closing costs, but in order to do that you have to show a hardship. It's not that easy, but it does and could work.

It's hard to give you the correct answer unless I have all the information. So give ma a call and we could discuss it. . Estelle Rattner (856) 979-4892
Prudential Fox and Roach Realtors- Moorestown
0 votes
Keri Ricci, Agent, Cherry Hill, NJ
Sat Mar 24, 2012
Definitely could be a short sale but look into the other options already suggested and the type of loan that your buyer is using. Your agent should be able to give you some of your options and you will definitely want to carefully look over the recent comps to see if the appraisal could be challenged.

Keri Ricci
Keller Williams Realty
856 321 1212 x 230
0 votes
Robert Green…, Agent, Cherry Hill, NJ
Sat Mar 24, 2012
Hi. The appraisal can be questioned. Is the buyer using Conventional financing? FHA financing? There is a difference. This transaction might need to be a short sale. I welcome your phone call for a consultation. I can help.
Robert Greenblatt
Keller Williams Realty
856 575 1818
0 votes
Ines De La C…, Agent, Marlton, NJ
Sat Mar 24, 2012
Hello Hankw0o,
Thanks for your question.
It looks to me that you have to review the appraisal and see if there is any other homes to consider to get the appraisal disputed. Did you get the comparables on your home when you had it listed ?
If not you have to talk with your agent since they will need to explain all your options.
Good luck!
Ines De La Cruz
RE/MAX Connection
0 votes
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