Short Sale Question: How Come The Bank Won't Approve The Short Sale?

A question from another agent:

"I am negotiating a short sale with a bank. The short sale loan is a Veteran's Administration Insured Loan. An appraisal was completed and sent to the lender. Here is the problem.

The home needs a lot of repairs. However, the appraiser never viewed the inside the house. I feel that the appraisal is innaccurate because he is not factoring in the necessary repairs.

What can we do. I don't want to see my client lose his home to foreclosure. Tom."

To answer his question, here is what I would do.

First, get your hands on a copy of the appraisal. Compare that with a Comparable Market Analysis done by a realtor. See if there is anything the appraiser overlooked. Second, determine what other homes in similar condition to this home have sold for. Put together a Comparable Market Analysis using homes in similar condition as comparable sales. Third, if you see a big discrepancy, then contact the appraiser about it. In addition, I would check the VA Appraisal Guidelines. I am guessing that the appraisal guidelines require the appraiser view the inside of the home. If that is the case, then contact the bank, VA, and the appraiser. Tell them what you have found. Ask for a new, more accurate appraisal that shows the home's value in it's current condition.

Thinking about a short sale?
Contact me for more info on a new program that allows you to short sale and buy a new home right away. I can help you short sale your property and get back on your feet. Send me an e-mail at jmaruri@hlrusa.com. You can also call me at 619-392-1550. When we talk, I will explain how the process works in detail and answer any questions you may have.

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