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Help!! I can not get financing for my Condo

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Danman1111R

Junior Member
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

Senior Member
Danman1111R said:
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

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

ke2global

Junior Member
Condo

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

Junior Member
Check before you terminate

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

Senior Member
ke2global said:
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

Senior Member
ke2global said:
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.
 

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