Thursday, July 10, 2008

Appraisal Rebuttal: First American-SunTrust Short Sale

Do you have a First American Bank (subsidiary of Suntrust) Short Sale with a Fannie Mae-backed mortgage? If so, prepare for difficult times proving contract price in a declining market. Unlike many other lenders, First American is proactive working with the homeowner ahead of time in the Short Sale process. And in doing so, they perform appraisals on the subject property even prior to an offer. The problem is - they will only do an appraisal every six months! No matter what. Why? They say that's all that Fannie Mae will pay for. That makes no sense, especially in a quickly declining market.

Here is my appraisal rebuttal to First American, who used an old appraisal, after receiving a good offer for $170,000 on a Short Sale listed for $183,000 but which appraised for $200,000 two months earlier.

With regard to the offer for 12 School St., Navarre, FL for $170,000 plus VA buyer closing costs, I believe the offer deserves serious consideration. I am told you have an April 2008 appraisal for $200,000. I am disputing the validity of that appraisal in this market for this particular home. Here is why:
The subject has been listed since APRIL 2007- over a year- with a price dropped in December 2007 from $249,000 to $214,900- no offer
The price was again dropped to $205,000 for 60 days in March and April 2008- still no offer
From April 2008 until today- 60 more days-- the price has gradually dropped from $189,000 to $183,000
On June 11 an offer for $152,000 was received. This was rejected.
Finally an offer arrived on June 13 for $170,000 (plus some VA closing costs)
If the house was worth $200,000 as stated in the appraisal, it certainly would have been snapped up in the $180's
The property has NO SOD in the backyard, just dirt.
The property needs carpet, which is stained.
The property is on a road with the Navarre High School and a few lots down from the Sheriff's office. This is NOT a desirable neighborhood, as it has backed-up traffic and the trouble that comes with those public-use properties.
The average months inventory for Navarre is 13 months.
This is the only viable offer received. This is a good offer and a lucky offer.

I provided additional comps, market statistics and listing history with this narrative. I will advise with updates on hopefully a positive outcome.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Specializing in SHORT SALES and FORECLOSURES on the Emerald Coast of Florida: Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

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