SS - How to fight back when Bank asks 20% more after contract signed

[Susan W.]

The house was listed @ $100k, and I offered $140k. The bank counted to $150k, so I increased my offer to $150k and my cash offer was accepted in June. Contract was signed, both earnest money and fund proof were accepted by the closing company. The initial closing date is 6/20.

Every week, we have to sign closing extension. The listing agent is dual agent. He said the SS is already approved by the bank. In June, the bank asked for $70k, while he already listed $30k more. Now the Bank has done 3 BPOs and today the final number came in as $180k.

How to fight back with this 20% or $30k increase?

Thanks in advance for your help!

[Wayne Brooks]

It's highly unlikely that "the bank" countered at $150k, unless it was some type of truly preapproved short sale, like an FHA. The listing agent is a bit incompetent, or else they wouldn't have listed the property at $100k, when the value is somewhere between $150-180k. Obviously, the short sale was Not already approved by the bank. Depending on who the investor is for the loan, the value dispute process will vary, assuming the $180k is not a legitimate number. If mortgage insurance is involved, it is tougher. There is no obligation for them to accept any amount, as your contract is with the Owner, not the bank, and is subject to bank approval.