A little background. Ms Bea is a single mom, has a good job
and has worked hard for the last 2 years to get her credit in order. She had to
attend classes and take tests, but at the end of it, she was ready to buy a
home and also qualified to get a down payment assistance grant from the county.
So… we looked at several houses before settling on this home
at 123 Homeseller St. It was perfect for her – 4 bedrooms, 2.5 bathrooms and a fenced
backyard where the kids would be safe. There were hardwoods on the main level
and apart from the formal living and dining rooms, it had a large family room.
Bea was excited, as was I.
This was a short sale i.e. the homeowners were heading towards
foreclosure, so though the offer was accepted by the seller, it still had to get
approved by the seller’s bank that was his mortgagor.
Days went by. Nothing from the seller’s bank.
Then we were told that it would be advisable for the Bea to
get a home inspection. This way, if anything showed up as not working, the
seller’s bank could be informed.
I was completely against it, but when I put it to Bea, she
agreed to have the home inspection. She spent $280 – there was nothing majorly
wrong with the house.
And so we waited. Another month went by. The seller’s bank ordered
a second appraisal.
And here’s the funny thing. Not ha-ha funny, but weird
funny. The appraisal came out much higher than the previous one. And the bank
decided to increase the sale price of the house by 30%!
Sadly, Bea could not qualify for the bumped-up price. So,
after 4 months of waiting and spending $280 on a home inspection, she is back
to square one.
So… buyers beware! Appraisals are coming in higher and banks
have no compunctions about increasing the asking price.
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