House Sale Troubles And FNMA
I have a contract on my house for 235,000. The appriasal comes back at 235,000. The person more than qualifies for the loan...740 credit, excellent income. The banks are telling me the house is only coming up on their appraisal system the FNMA/Freddie Mac as 120,000. This is a huge difference. I can see in the area how it would come up as this, but this is a unique house with more land, bigger house, another house out back, where none of the others have it. There are comps out there, but one is 1/4 a mile, another 3/4 a mile and the third 1/5 miles.
Any ideas?
Where I live, comps are taken from a 7 mile radius. I would think that your 1 mile radius would still be acceptable even in larger cities. The bank is probably just doing a desktop appraisal. Was your appraisal performed by a certified appraiser? Why do the banks dismiss your full appraisal against their desktop appraisals?
Robert
I have no idea...the only thing I can think of is there is no seasoning. I bought the house for 88500 in January and now 6 months later it is worth 230k.
1. I got it for a good price
2. It was falling apart, now looks great. I put 70k into it.
Jetts,
Were the banks even willing to look at your full appraisal?
robert
In cases like this where the increase in price is substantial, is where it is very important that you deal with an aggressive mortgage broker who understands your type of investing.
He will know which lenders to guide the buyer to, and will help you to prepare a file explaining:
-- The reason why you were able to obtain the house well below FMV
-- Full documentation on the rehab you did. This includes before and after pictures. Detailed description of the work done and all your receipts from subcontractors, Home Depot, etc.
-- Guidance to the Appraiser as to the arguments underlying his choice of comps.
-- etc.
Don't be surprised if a second appraisal is required. Just make sure you're there to meet the gentleman. Give him a copy of your map with documents and highlight the unique aspects of your property.
By its very nature, your property will end up with a special group that each lender has, whose task it is to investigate these anomalies very carefully. If you've done your homework well, and control the loan apllication proces from A to Z, you should be okay.
Hope this helps.
[addsig]