The Hud home i bid on appraised at 135k and i bid 138k havent heard back about the decison to take the appraise price?

I hope you reached out to the realtor on this one.

You will probably have to sit tight and be patient. HUD does not have to lower the price to the $135K appraised value as there is nothing in the contract stating that they do. If they refuse to lower the sales price to the $135K you have two options: You can terminate the contract and move on to another home or you can pay the extra $3K out of pocket. If you choose to pay the extra, this $3K will not go towards your loan to value ratio so if you are getting an FHA loan you will still have to pay the 3.5% down payment along with the extra $3K as well as any closing costs and prepaids. TAR is working on approving an addendum that will address what will happen to the difference between sales price and a lower appraised value. During the contract negotiation phase, what to do if the appraised value is lower than the sales price will be negotiated up front, not after the fact. Good luck to you.

Rhonda Ferris
Sales Associate
RE/MAX Associates Northeast
rhonda@teamelite.com
713-819-7372