Bank Appraisal

[LISAC]

I am attempting to purchase a house in Massachusetts. I paid to have the bank appraisal done on a home where I, and the sellers, have already signed the purchase and sale.

Closing is set for the end of the month, but I was just told by the realtor that the sellers family told them they could sell the house for much more than the price they agreed upon and now the sellers are waiting to see if the appraisal comes back *higher* than agreed before they decide to go ahead and sell the house to me.

I am paying for the appraisal not them. I would think that the only time that they should know what came back as an appraisal is if it came back *lower* ... since the bank would not loan the original asking price to me.

My question: Can the sellers legally find out how much the house was appraised if it comes back anything but lower ... and can they break the purchase and sale agreement with me and try to sell higher to someone else? Thank you.

 

[HomeGuru]

1. yes, if there is a subpoena for deposition of records or through discovery in litigation.

2. it depends on how your contract was written. Does the Seller have an out anywhere in the contract?

 

[LISAC]

RE: BANK APPRAISAL

I am from Massachusetts and I asked whether the seller could find out what their house was appraised at if I, the buyer, am paying for the appraisal. The answer was yes, through litigation.

The mortgage broker that is obtaining my loan, is friendly with the realtor. The realtor was the one who told me that the sellers were waiting to find out what the appraisal is in case it comes back *higher* than agreed upon. I thought that they would only be informed if the appraisal came back *lower* than agreed upon since I would not be able to secure a bank loan.

My follow up question: Without the process of litigation, can the mortgage broker just go ahead and divulge to the realtor what the amount of the appraisal is and can the realtor in turn tell the seller without my permission? Thank you.

 

[HomeGuru]

Yes, if the mortgage broker has a "loose lips sink ships attitude", ya know acting like the beer with the Big Mouth.