{"id":3749,"date":"2013-02-22T09:00:48","date_gmt":"2013-02-22T14:00:48","guid":{"rendered":"https:\/\/orlandorealtyconsultants.com\/?p=3749"},"modified":"2022-03-03T20:37:05","modified_gmt":"2022-03-03T20:37:05","slug":"what-happens-when-an-orlando-short-sales-get-approved-for-more-than-appraisal-value","status":"publish","type":"post","link":"https:\/\/orlandorealtyconsultants.com\/es\/what-happens-when-an-orlando-short-sales-get-approved-for-more-than-appraisal-value\/","title":{"rendered":"What happens when an Orlando Short Sales get approved for more than appraisal value?"},"content":{"rendered":"

When a buyer puts in an offer on an Orlando short sale<\/strong><\/a> property, that person believes that they are getting a great deal. Many times this ends up being the case and after several months of waiting…the bank approves the offer but don’t celebrate yet,…  there are still a few things that can make the deal fall apart.<\/p>\n\n\n\n

The appraisal is a crucial and unavoidable part of this process. let’s say for instance that the bank approved your short sale<\/strong> offer of $100,000.00, the next step is to get your financing in line which means getting the property appraised, inspected, etc. The issue now is to get the property to appraise for at least the amount of the contract. If the property falls short on the appraisal, let’s say $95,000.00, then there’s a problem because your lender is not going to approve a loan for $100,000.00 for a house that just appraised for $5,000.00 less.<\/p>\n\n\n\n

How and why does this happen?<\/p>\n\n\n\n

Appraisers have to go off of recently sold properties only, not pending properties, or active properties. So even though the BPO may have come in at a higher valuation, the reason is that BPO agents have a bit more leeway on what comparables they are able to use. As opposed to appraisers, BPO reports may include active listings, pending listings, in addition to sold listings in order to determine true valuation.<\/p>\n\n\n\n

Will the short sale lender adjust the approval price to match the appraisal price?<\/strong><\/p>\n\n\n\n

Most lenders will actually change their payoff letter so that the deal can go through. As a matter of fact, this is something that happens all of the time in our office. The only drawback is that it takes a bit longer because there’s a process which typically 2 to 3 weeks. It all comes down to how much of a hurry the buyer is in to buy the house. If the buyer is in a position to wait the extra time, then this actually benefits them because they get an even better deal than the original price.<\/p>\n\n\n\n

Lenders like Fannie Mae<\/a> for instance are less likely to lower the approval amount regardless of the appraisal value. I know what you’re thinking and I agree… It makes no sense.<\/p>\n\n\n\n

What happens if the lender is unwilling to adjust the approval price?<\/strong><\/p>\n\n\n\n

There are a couple of different scenarios that may ensue if the lender doesn’t want to lower their payoff amount. One thing that can happen is that the buyer walks away and keeps looking for another Orlando short sale.<\/strong><\/a> Another way to get around this issue is if it’s a cash buyer that really wants the property. However, not too many people will purchase a property for more money than the appraised value unless it holds some kind of sentimental value for them.<\/p>\n\n\n\n

Need help with a short sale? Call our office at 407-902-7750<\/p>\n\n\n\n

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When a buyer puts in an offer on an Orlando short sale property, that person believes that they are getting a great deal. Many times this ends up being the case and after several months of waiting…the bank approves the offer but don’t celebrate yet,…  there are still a few things that can make the […]<\/p>\n","protected":false},"author":4,"featured_media":21896,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[7,54,6,17],"tags":[242,121,10,12,223,16,25],"class_list":["post-3749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-mortgage-companies","category-orlando-realtors","category-orlando-short-sales-2","tag-appraisal-values","tag-orlando-appraisers-2","tag-orlando-real-estate-2","tag-orlando-realtors","tag-orlando-short-sale-agent","tag-orlando-short-sale-realtor","tag-orlando-short-sales"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t