I have reviewed numerous threads with the discussion about Appraisals coming in low and feel these loans should be a denial, however we are having some discussion as to why others feel that this shouldn't be a denial because it is out of the Borrowers control. I see this as a valid argument, especially when somebody says they just don't want to bring more money to closing. Here is one of the responses to discussion that we had and wanted to get some feedback on what you guys think b/c honestly, I just don't really know how to correctly respond when I sorta understand where they are coming from:
I have a very hard time with this one. If the potential collateral value comes in low why would we not then allow the contract to be terminated therefore creating a withdraw situation. This was not a qualification issue on the borrowers side it was something completely out of their control.
Trust in the Lord with ALL your heart...Prov 3:5-6