Pre-Construction Buyers In A Double-Bind
What to do if your appraisal comes in lower than the purchase price
Some borrowers are facing financial ruin because their bank appraisals are coming up 15-20% short of the amount they agreed to pay last year to pay for their homes, leaving a huge gap in the financing they will get when it comes time to close on their houses later this year .
They’re in a bind where if they walk away, they may get sued by the builder. But they can’t close with the banks because their appraised values are coming in much lower than what they purchased them for.
So, to recap:
They stand to lose hundreds of thousands of dollars if they walk away.
They’ll get sued if they do.
They can’t close with the banks.
To make matters worse, the builder is now selling the same houses, in the same neighbourhoods, for hundreds of thousands cheaper than they bought it for, which undermines and undercuts their own investment.
We can only imagine what these buyers must be going through, and the good news is we have a solution.
Through our in-house fund CAPL, we are able to lend on the higher of the purchase price or the appraised value. This means you can close on your pre-construction home with the existing deposit and not have to make up the price-corrected difference!
If you or someone you know is in this situation, we would be happy to help them get through it. Call or Email us 24/7