short sale appraisal
Submitted by liza
from CA
- 12/15/2009 - 6:54pm
I have an approved short sale in escrow. Buyer went to Bank of America for FHA loan was turned down after appraisal of $300,000 due to buyers income is insufficient. Buyer went to a different lender and was FHA approved with an appraisal of the property at the listing price of $320,000. Bank of America downloaded the appraisal price of $300,000. New lender can not complete loan because FHA connection shows Bank of America's downloaded amount of $300,000. Did Bank of America acted neglignetly????? Why do they have to download the appraisal when buyer is not getting a loan from them or when they denied loan to the buyer? ? What should I do? Please advise.
Liza
Comments
Liza, that's horrible. I don't have an answer for you but I am going to follow your post. Good Luck!
Lisa, that's horrible. I don't have an answer for you but I want to follow your post. Good luck and don't give up!
That can be correct.
If the DE underwriter decides to turn down the loan due to income, that can enter the info into FHA connection.
Below is some information that I took from the FHA website(http://www.hud.gov/offices/hsg/sfh/f17c/f17undrreg_xmlhlp.cfm):
A Direct Endorsement (DE) underwriter's basic responsibility is to review/certify mortgage loan origination documents for compliance with the requirements of the Federal Housing Administration's mortgage insurance program.
Previously, DE underwriters were approved by the Federal Housing Administration (FHA); however, as of February 26, 1996 (see Mortgagee Letter 96-10), the FHA no longer approves individual underwriters. Underwriters are employed by the lender, and it is the lender's responsibility to ensure that the DE underwriter(s) employed by them meet the qualifications outlined in HUD Handbook 4000.4 REV-1. The lender must register employed DE underwriters with the FHA using the Underwriter Registry.
Underwriter information is checked against the Credit Alert Interactive Voice Response System (CAIVRS) file and recorded in the National Underwriter File maintained in CHUMS. Once the underwriter information is entered and there are no detected errors, the individual is issued an underwriter identification number by the FHA. This FHA-assigned number stays associated with the individual throughout their tenure as a DE underwriter, no matter what lender is his/her employer. FHA reserves the right to remove underwriters from the registry upon imposition of sanctions.
Hope this helps.
Mike
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Michael Tacconi
Mortgage Advisor
925-872-0595 Cell
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