what happens when a short sale house does not appraise?
Newtoarea: First of all, you may be waiting a couple of months before hearing anything about your offer. The banks are overwhelmed and until they assign a “Negotiater”, to the property no offers will actually be reviewed. There are many steps to completing a short sale and these short sales are all at different stages with different banks that have slightly different procedures. There is no smooth method or model for purchasing a short sale. Depending on how many loans the defaulting borrower had can make a difference also. When a property does not appraise the bank will almost always lower the price to the appraised value. I have had them ask for another appraisal on higher priced custom homes that are difficult to find comparables for, but on tract homes it is so easy to find “Recent Sold Comparables”, that a second appraisal is usually not necessary. No body will expect you to come in with money over the appraised value as that is an unreasonable expectation. You should be looking f
