2 appraisals?!!!!?

Just the other day I read a featured blog that triggered my mind to an incident that happened to an associate 2 months ago. After all the hollering and venting that was conducted all I could do was look at him with a confused and sorry look that said YOU SHOULD OF KNOWN...then after that thought the next thing I said to myself was...MAYBE THERE WAS NO WAY TO KNOW.

Now most of us already know that when dealing with investors that own property and a buyer wants to purchase the investor has to have ownership for at least 90 days before a contract is written if they are utilizing FHA financing right? Now my other question I'm going to ask may seem ridiculous to some but just the same I got to ask it. We all know what the rules are of your particular mortgage company that is your preferred lender, right?...right?

Here's what happened...Buyer was out looking at homes and happened to stumble upon the listing agent just as they were leaving a property that they wanted to buy. Agent was not quite ready to list the property...buyer somehow got the listing agent to list the property and submitted a contract immediately. Buyer was already preapproved with their lender. Buyer is utilizing conventional financing and put down a substantial amount of money. I was told almost 40% of sales price...is this the type of client we all dream of...or do we?

Property was listed for $440,000. This property was a foreclosure that was previously owned by an investor. Everything was going well until the title work came back. Associate calls up buyer and says "I'm sorry to inform you but a second appraisal has to be done..." you really don't want to know what was said or done...

...Title work shows property was purchased at $340,000 and bank owned it for 78 days. A waiver was requested to lender and granted...needless to say a second appraisal did NOT have be done because the buyer's LTV was only at 60%. Company policy of that particular mortgage company varies from type of loan product being utilized, to LTV, to number of days property is owned. I ask each of you reading this blog...could this have been prevented?