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Updated almost 4 years ago,

User Stats

36
Posts
3
Votes
Sandeep Majumder
  • Contractor
  • Cypress, TX
3
Votes |
36
Posts

Second FHA appraisal after original contract fell through?

Sandeep Majumder
  • Contractor
  • Cypress, TX
Posted

Hi everyone, I have a situation I need some insight on as I have not had this happen before. I am selling a house in Houston (fix and flip), and the original buyers' FHA financing fell through - we went under contract in December for $5k under asking, the original lender who preapproved them rejected the loan in January due to late payments on a property in Puerto Rico, and they quickly found a new lender who told them they could get the file closed. The new lender ordered an appraisal which we BELIEVE was done, but our realtor never received confirmation from the appraiser and now he is not returning emails / phone calls so we don't know if it was completed and filed.

The new lender was not able to push the file through, so we had to cancel the contract. We put the property back on market and had 13 showings and 6 offers in the first day (most of them over asking). Thing about this is that 5 of those 6 were FHA offers, and the one VA offer was the only one under asking. I am inclined to go with one of the over asking offers with good terms of course, but I am concerned that if the original FHA appraisal was filed that the new buyer's lender will go off this appraisal since it is valid for 120 days.

Does anyone have any experience, knowledge, or advice for this situation?  Is this not something I need to worry about because a new lender would want to order their own appraisal anyway?  Thanks in advance.