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If the bank was only allowing her to mortgage 50% of the sale price then the apprasisal hase to come in at the sale price.
Not enough info about the terms of the mortgage to know the answer. sloefarm explained it a little better than I did.
Legion, where you at? I have my operation pre-admission testing today at NYU and just noticed on the form:
***DO NOT have anything alcoholic to drink for 48 hours prior to your pre-admission testing.
Of course I just saw this now. I had one beer yesterday (fortunately I stopped at one, which is rare). Will drinking enough water get it out of my system or is this going to be a problem?
dibs — that would be a jinx if I weren’t so darn verbose.
jackal — we don’t need to take the silvicultrue thing further. Apparently, I am out of my element.
not at Brooklyn Bridge Park…..at a Brooklyn park in Red Hook
snappy, there should be a mortgage contingency, not an appraisal contingency. If a low appraisal causes the mortgage to be rejected, then buyer would have an out. Banks lend on the basis of loan to value. The problem usually arises when, say, a bank is lending 80% of the contract price, but the rate is only good for an LTV of 80%. If appraisal comes in below the contract price, bank won’t loan, unless buyer is willing to put up more cash to reduce the loan to 80% of appraised value. I think your point here is that it is hard to see how the bank is nearing an LTV limit here. Where was this house? That might be a clue. Perhaps the bank was skeptical of the contract price.
Tybur, that’s no good at all 🙁 Warm weather brings out the kooks.
Dave, the contingency was there only because the lender required it, not the buyer.
What happened in your neighborhood last night? Mine was full of carjackings and gunshots and speeding police cars and ambulances and low-flying search helicopters.
A quiet Thursday evening in Ditmas Park.
Appraisal has to come in at terms to support the loan. So if you’re bank is willing to give you an 80% loan to value, it has to come in at or above that number.
In this case, the buyer has put a very restrictive contingency into the contract that is not actually necessary. Sounds like a first time buyer who wants to “guarantee” she’s not paying too much. it doesn’t waork that way. Seller is right to balk at it.