Lender Backing Out at the last minute.

[Alan Exelby]

Hey All

I am in the final days of a probate sale and my lender finally came back with an appraisal well bellow the comps in my neighborhood that I'm buying. I am already into this for a bunch of money that is non refundable and they want to pull the rug out from under me. I close in 4 working days and I may be finished before I even get going on my first actual flip.

Any and all help and suggestions would be greatly appreciated. 

Thanks

[Hattie Dizmond]

I may be confused, but I fail to understand what the appraisal would have to do with the comps. The appraisal would be what the property is currently worth. That's one of the reasons it's tough to use conventional lenders for flips and/or distressed properties. They don't care what the ARV is. They only care what the current value is in relation to the loan amount. Based upon the way you asked the question, I would assume the problem is that you are requesting a purchase loan that represents too great a % of the property's current, not potential value. If that's the case, your options are to put more money down or use non-conventional financing. I would also take a serious look at the numbers. If I've misread the problem, feel free to clarify.