Chosen by Asker

In your offer to purchase were there any contingencies about the appraised price? That would be one loophole. Read that offer, you should also have a statement on about page 3 (every state is different) about "financing contingency". If that is in there and the FHA won't approve a loan for the amount you offered, then you would also be off the hook. I hope your agent put that in, if not shame on him or her. If your realtor will not respond to you IMMEDIATELY call his office and ask to speak to the sales director. The realtor needs to get on the ball and make an amendment to the offer. If you drop out of the sale you may have to sue the seller for return of your earnest money. (which is what I think you are referring to when you say you put a percentage of the purchase price down.) Maybe you can get the seller to accept a lower price, but it sounds like they are trying to fight the appraisal.

Source(s)

Realtor

by CAtransplant

1 month ago

Asker's Rating: 

Once your offer is accepted, you have ZERO time to pull out. It's binding from the moment of acceptance forward. You are now in a position where you need to wait until everything is ironed out. You MAY lose the tax credit if it takes too long. Unless you put all sort of contingencies in your offer to cover these scenarios, you are stuck.

by acermill- 1 month ago

Take a look at your purchase contract to see what reasons are available to back out of the agreement. A low appraisal should certainly be one of them. Or you can renegotiate the purchase price based on the lower evaluation. Generally, there is also a time frame assigned to the agreement. Your realtor should walk through this with you (although they want the sale to close so they get the commission).

by Dave.Henry@supremelending.com- 1 month ago

If you are in California, there are a number of answers to this scenario. 1.) If this isn't a short sale or foreclosure sale, then you have until your loan and appraisal contingency date (default is 17 days after acceptance when using the CAR RPA form) to back out with NO risk of losing your deposit. 2.) If this IS a foreclosure, be sure to read the Real Estate Purchase Addendum the bank has countered you with. It most likely changes your contingency periods and makes it a 'passive' contingency versus an 'active' contingency. The difference is a passive contingency is considered 'satisfied' by a certain date and does not need to be removed with a Contingency Removal form or Addendum. I would call your agent until he picks up the phone! Your chances of closing on another home before the Nov 30th deadline are VERY slim if you wait another 24 hours before going into another contract. Remember - there's a LOT of Buyers out there trying to get in on the $8K tax credit and loans are taking longer to process due to sheer volume. Pulling off a 30 day loan is difficult right now even with the best loan officer. Good Luck - it's a jungle out there. :) 'acermill' - Your answer is by all means not correct for the State of California. Shouldn't you find out where she is before giving the kind of advice that could send some people into a panic? Yikes! Not good for the Realtor name.

by Kat- 1 month ago

pull out.. its too low.

by Dr. Lana- 1 month ago

If you've made an offer and the seller has accepted the offer, then both of you are bound to the sale. However, since the appraisal is lower than the lender will finance, you can pull out and get your money back. Is there a statement in your offer that addresses appraisal value? Something like "offer subject to appraisal meeting lender requirements". I would question how the seller came up with the price of the house. I would also question why your real estate agent didn't do any comps on other homes that have recently sold in the area (mine did). Your real estate agent or mortgage broker should have pre-qualified you for a loan amount before you go shopping so that you don't waste time looking at homes your lender won't finance.

by Dan B- 1 month ago

u have till "the inspection"

by kemperk- 1 month ago