Help!! I can not get financing for my Condo

[Danman1111R]

What is the name of your state?Florida

I have a condo under contract for $270,000; it has appraised for $250,000. The Realtor that represented me in this transaction was a dual agent and also represented the seller. I have deposited $10,000 as earnest money. The lender will not approve a loan for the full purchase price because of the lower appraisal.

I am in a bind; what is the best course of action for me to take?

[HomeGuru]

Originally Posted by Danman1111R

What is the name of your state?Florida

I have a condo under contract for $270,000; it has appraised for $250,000. The Realtor that represented me in this transaction was a dual agent and also represented the seller. I have deposited $10,000 as earnest money. The lender will not approve a loan for the full purchase price because of the lower appraisal.

I am in a bind; what is the best course of action for me to take?

**A: pay the extra $20K in cash, negotiate the price to appraised value or terminate the deal.

[Danman1111R]

Florida
Do I have recourse against the Realtor that represented me? And if I terminate the deal, do I lose my earnest money?

[ke2global]

negotiate a lower price (appraised amount)...
check with other banks who use different appraisers..
if you put 3 appraisers in the same room they almost always
come up with a different amount and the swings can be great...
pay the difference in cash ($20,000) or cash equivalent...

[ke2global]

in most cases if you terminate the deal you will lose your
earnest money...check with an attorney or local title company...
unless you have a clause in your contract that says "subject to"
an appraisal or bank loan approval..

[HomeGuru]

Originally Posted by ke2global

negotiate a lower price (appraised amount)...
check with other banks who use different appraisers..
if you put 3 appraisers in the same room they almost always
come up with a different amount and the swings can be great...
pay the difference in cash ($20,000) or cash equivalent...

**A: the writer is the Buyer. Why would the Buyer look for another appraiser to come up with a higher value just to pay a higher sales price?

[HomeGuru]

Originally Posted by ke2global

in most cases if you terminate the deal you will lose your
earnest money...check with an attorney or local title company...
unless you have a clause in your contract that says "subject to"
an appraisal or bank loan approval..

**A: there better be a financing contingency in the contract.