Will FHA finance based on a second appraisal?

Our bid was excepted on a HUD home. It was listed for 79,500, we bid 135,000. It appraised for 195,000 on the county auditors site last year. Here is the problem, we are seeking FHA financing, so the appraisal the bank had done, the house appraised for the 135,00, but the banker states FHA is going by the original appraisal. She is trying to get the original overturned to persue the FHA financing. IS this possible? Are we S**** out of luck? We are supposed to close this week, shouldn’t the banker know that FHA would not lend based on the second appraisal? I feel like my banker is incompetent, I believe she should have known that FHA would not finance the 135,000. What do I do now?
I guess when HUD list a home they have it appraised using a FHA appraisal. So when this house was listed the HUD FHA appraisal was 79,500, which is the list price, which is a really incorrect appraisal. So After my bid was accepted the bank ordered their FHA appraisal, it came back excellent at 135,000. But the underwriter siad they are going to go off of the HUD list appraisal, so my banker is trying to get the HUD list appraisal overturned.

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This entry was posted on Friday, September 25th, 2009 at 3:41 pm and is filed under FHA Financing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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