I Got Too Greedy -- Can This Deal be Saved???
I put in a SS offer on an home in default with an FHA mortgage. Mortgage balance is $80k, I offered $28k.
Met the bank's appraiser at the property, gave her a copy of the SS package just like Dwan and Sharon said to do and got a very favorable as-is appraisal of $30K, supporting my $28k offer. Everything looked golden until the loss mitigation rep called back and said they couldn't do a SS because FHA rules say that:
a) They can go down to 82% of as-is appraised value, BUT
b) The appraisal must be not less than 60% of the current mortgage balance ( I didn't know this rule or I would have made a higher offer)
Doing the math, $80k * 60% * 82% = $40,000 that the bank could short to.
I can still make money with a $40k purchase price but the loss mit rep now says they won't entertain a revised offer because they already have a low ball appraisal in hand. Help! Should I ask to speak to his supervisor or am I dead?
You posted this early today but nobody’s responded yet, so I will. I thought it was an interesting question.
Sounds like you have significant time into this already to have gotten this far. I’d go for broke. Yes, if I were you I would ask to speak to the supervisor. To the supervisor I would ask: “I understand I cannot revise my offer. If I submit an entirely new package could your company send in a different appraiser? I mean, one who might find a more favorable value of the house, as far as YOUR company’s interests are concerned?”
Of course I am not you. Myself, I would simply send a new package with a new offer, and make them sign for it, to put it in their faces. Then I would follow up with a call the day after they receive it.
Just my two cents.
wgheisler