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Posted: 5/19/2005 2:37:56 PM EDT
OK, I'm selling my condo and buying a house. All was going well. I was going to close on my place next week and close on the new house in June. Now the buyer's title company says the underwriter (based in CA) wont sign off on her loan stating the condo is 25K overpriced. WTF! He has great credit and the loan was approved. I'm screwed if this does not go through. I will loose my new house due to the pruchase being contingent upon the sale of my condo. Am I F#&@!D or can this be resolved by another underwriter? My beef is why is an underwriter in PRK dictating the value of my place here in Florida? The local appraiser set my condo to over 10K what it is selling for. What gives.

ETA: forgive my spelling. I'm pissed over this!
Link Posted: 5/19/2005 2:41:12 PM EDT
[Last Edit: 5/19/2005 2:41:57 PM EDT by operatorerror]
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Link Posted: 5/19/2005 2:42:16 PM EDT

Originally Posted By RABIDFOX50:
OK, I'm selling my condo and buying a house. All was going well. I was going to close on my place next week and close on the new house in June. Now the buyer's title company says the underwriter (based in CA) wont sign off on her loan stating the condo is 25K overpriced. WTF! He has great credit and the loan was approved. I'm screwed if this does not go through. I will loose my new house due to the pruchase being contingent upon the sale of my condo. Am I F#&@!D or can this be resolved by another underwriter? My beef is why is an underwriter in PRK dictating the value of my place here in Florida? The local appraiser set my condo to over 10K what it is selling for. What gives.

ETA: forgive my spelling. I'm pissed over this!



Your buyer got cold feet and is having the deal queered on purpose.
Link Posted: 5/19/2005 2:46:11 PM EDT
yep, that is what it sounds like to me. Did they get an appraisal? Anyone know if they have to give him a copy of the appraisal?
Link Posted: 5/19/2005 2:49:42 PM EDT
Uh...if you have a current appraisal from a licensed appraiser, then the condo is not "overpriced". Sounds like the buyer is trying to "lowball" you...don't let them screw you...it's a seller's market right now, so unless your condo is a total shithole, you can get a new buyer in a couple of days. We had a buyer try to pull that shit with us last year when we were selling our condo in VA...said the appraisal "came in too low" and tried to knock $20K off the price...my agent suspected collusion and said NFW...we returned the buyer's deposit and told him to get fucked. We had a new buyer within 3 days and ended up selling for $10K more than asking.

AGAIN...IT'S A SELLER'S MARKET...DON'T FIXATE ON ONE BUYER...GET THE BEST PRICE!!!
Link Posted: 5/19/2005 2:50:18 PM EDT

Originally Posted By NoVaGator:

Originally Posted By RABIDFOX50:
OK, I'm selling my condo and buying a house. All was going well. I was going to close on my place next week and close on the new house in June. Now the buyer's title company says the underwriter (based in CA) wont sign off on her loan stating the condo is 25K overpriced. WTF! He has great credit and the loan was approved. I'm screwed if this does not go through. I will loose my new house due to the pruchase being contingent upon the sale of my condo. Am I F#&@!D or can this be resolved by another underwriter? My beef is why is an underwriter in PRK dictating the value of my place here in Florida? The local appraiser set my condo to over 10K what it is selling for. What gives.

ETA: forgive my spelling. I'm pissed over this!



Your buyer got cold feet and is having the deal queered on purpose.



+1 Yup...a distinct possibility...also read my post above...
Link Posted: 5/19/2005 2:51:54 PM EDT

Originally Posted By RABIDFOX50:
OK, I'm selling my condo and buying a house. All was going well. I was going to close on my place next week and close on the new house in June. Now the buyer's title company says the underwriter (based in CA) wont sign off on her loan stating the condo is 25K overpriced. WTF! He has great credit and the loan was approved. I'm screwed if this does not go through. I will loose my new house due to the pruchase being contingent upon the sale of my condo. Am I F#&@!D or can this be resolved by another underwriter? My beef is why is an underwriter in PRK dictating the value of my place here in Florida? The local appraiser set my condo to over 10K what it is selling for. What gives.

ETA: forgive my spelling. I'm pissed over this!



Have your buyer call the underwriter and read them the riot act; they pull this crap way too often. Get a phone book and count the number of banks in their area and remind the underwriter that they are in the business to lend money and that there are XXX other banks in the area to do business with. Then call the underwriter's boss with the same reminder and a hint that maybe they should remind the underwirter of that fact.

Banks are just barely one rung better than used car salesmen, politicians, and bureaucrats, and they constantly try to be worse.
Link Posted: 5/19/2005 2:56:01 PM EDT
Link Posted: 5/19/2005 2:56:19 PM EDT
Here's what you do, RABIDFOX....

get the Buyer on the phone and conference-call the lender in.

I wouldn't believe that until I heard it from the horse's mouth.

Link Posted: 5/19/2005 3:00:39 PM EDT

Originally Posted By IamtheNRA:

Originally Posted By NoVaGator:

Originally Posted By RABIDFOX50:
OK, I'm selling my condo and buying a house. All was going well. I was going to close on my place next week and close on the new house in June. Now the buyer's title company says the underwriter (based in CA) wont sign off on her loan stating the condo is 25K overpriced. WTF! He has great credit and the loan was approved. I'm screwed if this does not go through. I will loose my new house due to the pruchase being contingent upon the sale of my condo. Am I F#&@!D or can this be resolved by another underwriter? My beef is why is an underwriter in PRK dictating the value of my place here in Florida? The local appraiser set my condo to over 10K what it is selling for. What gives.

ETA: forgive my spelling. I'm pissed over this!



Your buyer got cold feet and is having the deal queered on purpose.



+1 Yup...a distinct possibility...also read my post above...



Agreed.

Either that, or they're trying to get you to knock down the price. That tactic is more common than it really should be. They throw a figure out that you can't turn down, and then try to drop it later - they're betting you don't want to put it back on the market. Call their bluff.
Link Posted: 5/19/2005 3:49:05 PM EDT
Well, the buyer wants the condo bad, the price is locked in, and the mortgage has been approved. The underwriter is the only issue. The buyer told me and my realtor in a conf. call that she will try and work it out with the underwriter or get another one. My realtor said the lender may not deal with any other underwriters. How is this possible? I dont mind but these assclowns are clear across the counrty in some office looking at the appraised value of my place and comparing it to sales of condos in my area 6 months to a year earlier. WTF? I live in an area of Florida where condo/home prices have been going up every month. Why do banks in my state have to have an underwriter from the PEOPLE's REPUBLIC OF KALI? WERE ALL THE UNDERWRITERS SWEPT AWAY BY HURRICANE CHARLEY OR SOMETHING?
Link Posted: 5/19/2005 3:52:44 PM EDT

Originally Posted By RABIDFOX50:
Well, the buyer wants the condo bad, the price is locked in, and the mortgage has been approved. The underwriter is the only issue. The buyer told me and my realtor in a conf. call that she will try and work it out with the underwriter or get another one. My realtor said the lender may not deal with any other underwriters. How is this possible? I dont mind but these assclowns are clear across the counrty in some office looking at the appraised value of my place and comparing it to sales of condos in my area 6 months to a year earlier. WTF? I live in an area of Florida where condo/home prices have been going up every month. Why do banks in my state have to have an underwriter from the PEOPLE's REPUBLIC OF KALI? WERE ALL THE UNDERWRITERS SWEPT AWAY BY HURRICANE CHARLEY OR SOMETHING?




The underwriter is the lender. They've approved your buyer for X amount based upon credit, income, etc. but they won't lend on a property that doesn't appraise out.

What bank are you using? Ask the buyer if you can see a copy of the appraisal
Link Posted: 5/19/2005 3:57:16 PM EDT
The appraisal was done already. It appraised about 10K above the selling price.
Link Posted: 5/19/2005 3:59:19 PM EDT

Originally Posted By RABIDFOX50:
The appraisal was done already. It appraised about 10K above the selling price.



The local appraiser is the one that was engaged by the lender???
Link Posted: 5/19/2005 4:08:27 PM EDT
I was told the buyer must hire him. I gotta call them for my new place in the morning. My lender had nothing to do with it so I guess I could say the same for the buyer. Same goes for the inspector.
Link Posted: 5/19/2005 4:11:15 PM EDT

Originally Posted By RABIDFOX50:
I was told the buyer must hire him. I gotta call them for my new place in the morning. My lender had nothing to do with it so I guess I could say the same for the buyer. Same goes for the inspector.



No...the buyer can hire an appraiser for his own purposes, (rarely done) but lender (your buyer's lender) usually engages an appraiser on their own.
Link Posted: 5/19/2005 4:38:58 PM EDT
[Last Edit: 5/19/2005 4:39:52 PM EDT by RABIDFOX50]
This is why I'm pissed. I get so confused by this crap. The wife is telling me to calm down and that the buyer will work it out. I would hope so. Thanks for clearing up some of these things for me. I'm now less inclined to punch the wall. I'd like to punch that little paper pusher at the underwriters though.
Link Posted: 5/19/2005 4:48:34 PM EDT
I would also ask the buyer what kind of down payment they are making. Is it very little or more than say 10%? This *might* have something to do with it, unless like the others say the buyer is trying to get you to knock some more off. From what I have heard this is more common than you might think.
Link Posted: 5/19/2005 5:22:17 PM EDT

Originally Posted By RABIDFOX50:
This is why I'm pissed. I get so confused by this crap. The wife is telling me to calm down and that the buyer will work it out. I would hope so. Thanks for clearing up some of these things for me. I'm now less inclined to punch the wall. I'd like to punch that little paper pusher at the underwriters though.



If he buyer is trying to weasel out, calming down is not going to help you.
Link Posted: 5/19/2005 6:37:20 PM EDT
The buyer is not backing out, of that I am certain.
Link Posted: 5/19/2005 7:22:28 PM EDT
They are starting to peg which markets are in bubble.
Link Posted: 5/20/2005 1:55:30 AM EDT
Link Posted: 5/20/2005 9:06:07 AM EDT
If you're buyer's realtor is any good, he'll quickly find a new lender or call the current lender's rep and read them the riot act. I use to be a mortgage broker. Some underwriters are just fucktards on power trips. If your appraisal is accurate, the loan will get approved.
Link Posted: 5/21/2005 7:06:39 AM EDT

Originally Posted By Mute:
If you're buyer's realtor is any good, he'll quickly find a new lender or call the current lender's rep and read them the riot act. I use to be a mortgage broker. Some underwriters are just fucktards on power trips. If your appraisal is accurate, the loan will get approved.



Got a call last night from my realtor. The buyer gave her broker hell and they are now looking at three other underwriters. If it does not work out with them, she is going to another bank entirely. Needless to say her current bank is not pleased with the loss of her transaction. They told her, "We are going to make this work!" We shall see.....
Link Posted: 5/21/2005 12:05:40 PM EDT

Originally Posted By RABIDFOX50:

Originally Posted By Mute:
If you're buyer's realtor is any good, he'll quickly find a new lender or call the current lender's rep and read them the riot act. I use to be a mortgage broker. Some underwriters are just fucktards on power trips. If your appraisal is accurate, the loan will get approved.



Got a call last night from my realtor. The buyer gave her broker hell and they are now looking at three other underwriters. If it does not work out with them, she is going to another bank entirely. Needless to say her current bank is not pleased with the loss of her transaction. They told her, "We are going to make this work!" We shall see.....



They're not going to make it work with that lender. You can't "shop" underwriters.
Link Posted: 5/21/2005 12:47:07 PM EDT
DId they do an actual appraisal, or just a drive by, or check tax records and comp? Did an appraiser actual enter your condo and walk through. If not, DEMAND a full appraisal. Those drive-bys and comps can be way off.
Link Posted: 5/21/2005 1:09:20 PM EDT
Link Posted: 5/21/2005 2:40:31 PM EDT

Originally Posted By NoVaGator:
They're not going to make it work with that lender. You can't "shop" underwriters.



Ooops, sorry. I ment another lender.
Link Posted: 5/21/2005 2:43:42 PM EDT

Originally Posted By Deal_In:
DId they do an actual appraisal, or just a drive by, or check tax records and comp? Did an appraiser actual enter your condo and walk through. If not, DEMAND a full appraisal. Those drive-bys and comps can be way off.



Yes they walked through and supposedly checked tax records and comp, however their info is 6+ months old and the area's land prices are going up WEEKLY! I live in one of the fastest growing areas in the United States. The city of Cape Coral ranked as one of the top "5" places to live in the USA.
Link Posted: 5/21/2005 4:21:53 PM EDT

Originally Posted By sherrick13:

Originally Posted By NoVaGator:

Originally Posted By RABIDFOX50:

Originally Posted By Mute:
If you're buyer's realtor is any good, he'll quickly find a new lender or call the current lender's rep and read them the riot act. I use to be a mortgage broker. Some underwriters are just fucktards on power trips. If your appraisal is accurate, the loan will get approved.



Got a call last night from my realtor. The buyer gave her broker hell and they are now looking at three other underwriters. If it does not work out with them, she is going to another bank entirely. Needless to say her current bank is not pleased with the loss of her transaction. They told her, "We are going to make this work!" We shall see.....



They're not going to make it work with that lender. You can't "shop" underwriters.



Can you explain? If someone doesn't want to loan the money why can't you just go to someone else? I'm still new to real estate and I'm curious.



Rabid probably cleared this up in his post, but...

The underwriter is the person at the lender that reviews the appraisal, your credit, finances, etc and makes a go/no go decision. If the underwriter is saying "no" it not as if you can move down to the next cubicle and ask for a different opinion. You're going to have to try another lender. (and underwriter of single family RE has very little leeway anyway - it's all very programmatic.
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