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Richard
Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 54009
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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We have been trying to sell our home and have had multiple

Customer Question

We have been trying to sell our home and have had multiple deals fall through. We have a recent deal that involved us moving out our renter based on the request of the realtor and the buyers which we did as we needed to give the renters 30 days notice according to the renter agreement. Now we are being told that the lender requested a second appraisal due to the changes in the laws in October, the first apprassal came out at the price the buyer agreed to, the second apprassl they did a desk apprassl and chose an appraisal that had been done less than a year ago which was less and the bank is only agreeing to loan the amount for the lower apprassl. Now the realtor is trying to have us start a new deal with the buyers going to a new lender to start the process over. In the meantime, we have no renter in the home and out $2200 for the rent the past two months and the buyer now wants us to pay for the apprassl with the new lender because they paid for the last two apprassals. Please help. The realtor which we only signed on with because she is representing the buyer. She is waiting to hear back on these recent proposal. Thank you for your time and consideration in this matter
Submitted: 11 months ago.
Category: Real Estate Law
Expert:  Richard replied 11 months ago.

Good evening. My name is ***** ***** I look forward to helping you.

Can you provide me a bit more information? Does your existing contract have a contingency with regard to the appraisal and/or financing? Thanks!

Customer: replied 11 months ago.
I don't have the contract in front of me but according to the realtor there was a contingency regarding the apprassals.
Expert:  Richard replied 11 months ago.

Thanks for following up. First, you want to confirm that the contract actually does have a contingency for the appraisal in it because brokers aren't the most reliable sources as they have one thing they care about...the commission. And, the only way they get their commission is if the deal closes. So, they have a conflict of interest in giving counsel. Second, even if the contract does have such a contingency in it, check to see if the time has passed. And, third, even if the first two are satisfied, you have the right to contest any termination due to this contingency because the initial appraisal did satisfy the contingency and there was no reason for the second appraisal. So, I would NOT agree to a lower price and I would insist they close under the original contract or you will be holding them in consent and retaining their deposit.

Expert:  Richard replied 11 months ago.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

Expert:  Richard replied 11 months ago.

Hi there. I tried to accept your request for a phone call but the following message popped up: "The customer’s payment didn’t clear. Wait and refresh the page to try again. You may want to alert the customer there’s an issue with their payment method."

Customer: replied 11 months ago.
The contract expired last week. I don't have a copy of the agreement in front of me to verify this.
Expert:  Richard replied 11 months ago.

If the contract expired and they didn't close, I would retain their earnest money because you did get a satisfactory appraisal and I would not enter into another contract with this buyer for a lower amount. If your broker tries to convince you to do so, ask the broker if he's willing to pay the difference from his commission. :)

Customer: replied 11 months ago.
What constitutes a satisfactory appraisal? What are the new laws that came out in October that is allowing the lenders underwriter to make the final decision to only loan money for the lower appraisal. Also, they did the first appraisal for the surrounding area and the second based only on the small town the home is in and didn't even go to the house and look at it.On a side note: we live in a small community which my father in law was a well known pastor for 40 years who passed away this past January. He had an account for his church at the same bank that the buyer was taking the loan out from. We have concern that there may be a level of discrination. When my father in law died, members of the church and assistant pastor t tried to take over the church and all the business including kicking my mother in law and husband off the board so they could vote in their own board. This resulted in pressuring my mother in law to give the members access to the bank account opened under my father in laws name and ss#. Once we were able to legally gain back control of the church by the rightful board, the other board left and have not attended the church since. We have not been able to access the bank account which is also at the same bank the buyers have been trying to lend from. We have tried to have the former board illegal members to officially resign their position but only three have responded one of them was a signer on the account and the other signer has not responded. The bank has been giving us a hard time regarding the account and has threatened if we can't play nice, they will have the money go to litigation. I also understand that after a period of time. Not utilizing the account, the money could be lost to the bank. We tried contacting corporate for the bank, but they are located in the same county as we live in... I realize this is a little more information but feel there may be some discrimination on behalf of the lender....in both these cases... May be far fetched but something we have talked about considering many other issues that have come about since my father in laws passing. Any thoughts on this?
Expert:  Richard replied 11 months ago.

Good morning. It's not the appraisals themselves, but the appraiser. There was a law passed in May giving lenders more input on who does the appraisal. Who picked this first appraiser? And, can you provide me your specific language in the contract? How much is the earnest money?

Customer: replied 11 months ago.
I am going to try and locate the contract to get the specific language to you. I got s copy of the second appraisal which was an appraisal review. The original appraisal came in at 206,000 and indicates the appraisal was based on the surrounding area which is all of Lewis county. The review indicates that based on other homes that are similar, they were sold for less than180,000 but much less living area and no two story shop nor a double lot. The appraisal review was a desk review, they did not go out and see the home nor the shop. The one they compared with the most sold for 176,000 and didn't have any improvements done to it at all. I don't understand why they would base comparable appraisal based on what the house sold for rather than what the true appraised value may have been prior to the sale of the home?? Based on this review, the underwriter of the mortgage company decided to only loan the buyer 180,000. I appreciate your time and consideration in this matter and look forward to hearing from you soon. Thank you. Adrienne
Expert:  Richard replied 11 months ago.

Good morning Adrienne. It's truly my pleasure to help! :) Let me know as soon as you locate the contract. The specific language will allow me to determine your alternatives with more specificity. :)

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