Reconsideration even if waiving appraisal contingency

[NJ Valuator]

If the borrower is waiving the appraisal contingency, why do banks still request a reconsideration of value if the appraisal value falls short of the contract price?

Do they want the sale price to be supported so that the buyer will simply have a bigger mortgage?

 

[Tiffany Gibbons]

If the borrower is waiving the appraisal contingency, why do banks still request a reconsideration of value if the appraisal value falls short of the contract price?

Do they want the sale price to be supported so that the buyer will simply have a bigger mortgage?

Yes. Bigger loan commissions.

 

[CGinMN]

The borrower initiates the reconsideration, not the bank, presumably because they don’t want to have to pony up extra cash. Although in this case it sounds like they are willing to do that, but not until exercising their “right” to an ROV.

 

[Non Sequitur]

The borrower initiates the reconsideration, not the bank, presumably because they don’t want to have to pony up extra cash. Although in this case it sounds like they are willing to do that, but not until exercising their “right” to an ROV.

Yep. If the borrower is counting every dollar, like most are, the deal doesn't work if the appraisal doesn't support the purchase price.

 

[Tiffany Gibbons]

Yep. If the borrower is counting every dollar, like most are, the deal doesn't work if the appraisal doesn't support the purchase price.

Then, why waive the contingency?

 

[Non Sequitur]

Then, why waive the contingency?

I'm assuming the buyer thought the deal would work at their numbers, and when reality struck they initiated a ROV. Or the buyer was just really disappointed by the report.

 

[Tiffany Gibbons]

I'm assuming the buyer thought the deal would work at their numbers, and when reality struck they initiated a ROV. Or the buyer was just really disappointed by the report.

I haven't seen the house I'd pay too much for, I guess. Walk off the lot and buy another car, err house. It's that simple. Or go ahead and pay too much, then gripe about the appraisal 6 months later on appraiser forum when buyers regret hits.

 

[Dublin ohio]

If the borrower is waiving the appraisal contingency, why do banks still request a reconsideration of value if the appraisal value falls short of the contract price?

Do they want the sale price to be supported so that the buyer will simply have a bigger mortgage?

Is this something you had to deal with or a hypothetical

 

[J Grant]

If the borrower is waiving the appraisal contingency, why do banks still request a reconsideration of value if the appraisal value falls short of the contract price?

Do they want the sale price to be supported so that the buyer will simply have a bigger mortgage?

The borrower would still rather use other people s money but will pay their own funds in to make the sale price if they need to ( since they signed an appraisal waived )

 

[sputnam]

Or..... they might simply think that you got it wrong.