if a home appraisal is less than the asking, doesnt the guidelines premit the home from being sold higher than the appraisal for 6 months

Asked by Dolce, Hammonton, NJ Tue Feb 16, 2010

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Jeff Belonger, , Cherry Hill, NJ
Tue Feb 16, 2010
Dolce,

No, it doesn't. The guidelines say that you have to take the lower of the 2... which ever is lowest... the appraisal or the agreement of sale. And the appraisal being good for 6 months for the most part, depending on the mortgage program, has been reduced to 4 months.

I hope this helps some. If you are currently working with a lender and they didn't or couldn't answer this question for you, please give me a call. Even if you have other questions, I would be glad to answer them for you.

Lastly, if this was the case, as per your question, you have to pay the difference in cash.

Sincerely,

Jeffrey J. Belonger
Area Manager

Infinity Home Mortgage Company, Inc
Processing : 800-587-2762
Cell : 609-440-5133
Fax : 775-361-6619
e-mail : jbelonger@ihmci.com
1 vote
Fred Glick, Agent, Mountain View, CA
Tue Feb 16, 2010
If it is an FHA loan, the appraisal is locked for 3 months, not 6 anymore, but someone can pay more for the property. They just have to pay the extra amount over the appraised value in cash.

If someone is going for a conventional loan, there is a new appraisal ordered.

Also, someone can pay cash and then there is no appraisal.
Web Reference:  http://fredglick.com
1 vote
Dawn Bricker, Agent, Palmyra, NJ
Tue Feb 16, 2010
THe home can be sold over appraisal amount at any time. as long as the buyer is willing to pay the higher price in cash or if the seller and buyer can agree to a compromise. What you are referring to is the FHA appraisal and the property being assigned a case number. That appraisal stays with the house for 6 months.
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