Due to date of sale adjustments, my appraisal came in $32,000 below the contract price. As you can imagine, everyone is up in arms. Loan officer says both agents can provide a multitude of comps that support the sale price. This is an FHA sale.
I told the LO there is a proceedure to follow if they want a reconsideration of value. First they must submit their "evidence" to the underwriter. The underwriter considers that evidence and if he or she feels a reconsideration is warranted, he or she should formally ask by sending me a Request of Reconsideration of Value and I will make an analysis.
Knowing ALL the comps that are out there, the date of sale adjustments are most likely to be challenged. Values have fallen in this market area over 24% in the last 24 months. So, I use 1% per month as a demonstration of diminishing value.
FHA use to have a rationale for charging a fee for the reconsideration. If I recall, that rationale was backwards. So, I would charge an extra fee if the submitted evidence was worthless. If I was wrong, I would not charge. I don't think FHA takes a stand on fees for anything anymore but can any of you other old timers remember the formula?
I told the LO there is a proceedure to follow if they want a reconsideration of value. First they must submit their "evidence" to the underwriter. The underwriter considers that evidence and if he or she feels a reconsideration is warranted, he or she should formally ask by sending me a Request of Reconsideration of Value and I will make an analysis.
Knowing ALL the comps that are out there, the date of sale adjustments are most likely to be challenged. Values have fallen in this market area over 24% in the last 24 months. So, I use 1% per month as a demonstration of diminishing value.
FHA use to have a rationale for charging a fee for the reconsideration. If I recall, that rationale was backwards. So, I would charge an extra fee if the submitted evidence was worthless. If I was wrong, I would not charge. I don't think FHA takes a stand on fees for anything anymore but can any of you other old timers remember the formula?