APPRAISAL ISSUES (ATLANTA, GA)

[Jorge Guerrero]

What happens if the contract is signed to buy a house for $120,000 but the house only appraises for $105,000. the home is being purchased with a conventional loan. the lender will not lend more than that. but if the sellers decide to back down, and re list the property is another bank going to be willing to loan $120,000 or do they go based on the appraised value even if it is from another other bank.   

this is a residential home.