What is the name of your state (only U.S. law)? Maryland
I entered into a contract to purchase a home via a short sale. The seller's agent mentioned that they had a pre-approved selling price from the bank so the transaction should take about a month. Five months later and several discussions later... I negotiated a price of $360K on the house. The appraisal was done and the bank looked at the comps and the market and reduced the appraised value from $360K to $333K. My bank (lender) stated that they would not loan me more than the value of the home is worth. Therefore, I went back to the Seller's agent with an addendum to requested the bank lower the price to reflect the lender's assessment/review. The Seller's agent told my agent (nothing in writing) that the bank has declined my request and insist that they will not accept anything lower than $360K even though the houses (value) in that area have dropped significantly. I requested that the seller's agent send me the bank's rejection. He refused to send me it but forwarded the approved $360K amount sent by the bank on December 23, 2009. He stated that nothing has changed since the bank approved the $360K. This does not feel right. I am going to have to back out of the contract because I cannot get a loan on this property at the $360K value. It is an FHA loan with an FHA appraisal. This appraisal will be attached to this property for 4-6 months; therefore, the adjusted price will be attached to the appraisal as well. We were told have 3 banks that they would not make a loan on the $360K value after reviewing the appraisal. Do have have recourse?
I entered into a contract to purchase a home via a short sale. The seller's agent mentioned that they had a pre-approved selling price from the bank so the transaction should take about a month. Five months later and several discussions later... I negotiated a price of $360K on the house. The appraisal was done and the bank looked at the comps and the market and reduced the appraised value from $360K to $333K. My bank (lender) stated that they would not loan me more than the value of the home is worth. Therefore, I went back to the Seller's agent with an addendum to requested the bank lower the price to reflect the lender's assessment/review. The Seller's agent told my agent (nothing in writing) that the bank has declined my request and insist that they will not accept anything lower than $360K even though the houses (value) in that area have dropped significantly. I requested that the seller's agent send me the bank's rejection. He refused to send me it but forwarded the approved $360K amount sent by the bank on December 23, 2009. He stated that nothing has changed since the bank approved the $360K. This does not feel right. I am going to have to back out of the contract because I cannot get a loan on this property at the $360K value. It is an FHA loan with an FHA appraisal. This appraisal will be attached to this property for 4-6 months; therefore, the adjusted price will be attached to the appraisal as well. We were told have 3 banks that they would not make a loan on the $360K value after reviewing the appraisal. Do have have recourse?