Legal Question in Real Estate Law in Iowa
FHA changed the property value from the fha appraised value
The lender stated that FHA denied the FHA appraised value of the house for which we secured a buyer. FHA lowered the value below what our current FHA loan is now. Due to FHA lowering the appraisal, we lost the buyer of our home. The current FHA loan is $80K, assessed value is $91K, and appraisal value $96.5K. We agreed to sell the home to the buyer at $95k. They lowered the price by $20K due to non-marketable home. If the home is not marketable then why did we have a buyer after recently placing on market and a board member of the FHA appraised our home.
Both parties signed a purchase agreement. The buyer is still willing to purchase the home if we can get this resolved in a timely manner as their rental lease has termed. They will have to commit themselves to another lease agreement which will prevent them from buying the home.
We have contacted FHA and they refuse to assist us. The buyer is trying to obtain copies of the documents and is willing to give us a signed statement that they wanted to buy the home at $95K. This home is unique in desing because it is round. These homes were BOCA approved.
How can we obtain these documents and what legal rights do we have.
1 Answer from Attorneys
Re: FHA changed the property value from the fha appraised value
Generally, the FHA does nothing with regard to the valuation of the house. An independent appraiser, who is authorized by FHA to do appraisals for FHA loans will do an appraisal. If that appraisal does not indicate that the house is worth the purchase price shown on the purchase agreement, the purchaser is not obligated to purchase the house at that price. You can, of course, lower your asking price to allow the purchaser to get the FHA loan, but you are not obligated to do so. Unfortunately, you have no right to the appraisal at all, and generally, even the purchaser won't get a copy until closing.
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