low appraisals

Its been a long road in this home buying process! In this market it has been extremely stressful to try and purchase a home. I've gone through five bids and two escrows . On the first escrow we paid for the appraisal first wich came in low, then the home inspection. The inspection reveiled foundation issues that would have taken thousands of dollars to repair so we canceled the escrow. We moved on to yet another property. We thought the home was priced well so we placed a full price bid. The bid was accepted! Time to celebrate? No not so fast we need to start with an inspection. I was sick with worry over having just lost my dream home to a "bad" inspection! Well the house "passed" inspection with only a few minor repairs to be done. I was relieved! Time to celebrate? Not so fast! We had the appraisal to do next. I was not worried. I thought the house was reasonably priced . Right? WRONG! The appraisal came in 10,000 dollars less than asking price due to the fact the appraiser used forclousers as compariable homes. I was told they had no other homes to base there sales with. Being forclousers they sell for much less than a non distressed property would. So what are our qptions now? Well there was only ONE option for us because we don't have an extra 10,000 dollars to make up the difference in price. So we ask the seller , who is the "bank" to reduce the price. The banks are already at rock bottom pricing so this is a big gamble. Most banks are NOT so willing to farther reduce price and take a bigger loss. We are completely at the mercy of the bank or the sale will be killed! Well , we were very fortunate because the bank DID agree to come down in price! HOWEVER, we were required to come up with 1,500 more in closing costs and they took the home warentee away that they offered! So in the end we ended up paying 5,200 dollars plus another 500 for our home warentee but finally we were able to close the deal! Finally we got a house. This has been a long road and the low home appraisals threaten to kill deals along the way. This has been the most stressful time and I can't say it was at all enjoyable! I am very greatful it worked out! Not all people are so fortunate. Low appraisals are killing deals all across the country! I'm happy to say its finally over for us and we will be getting keys next week! What a long crazy road its been! I don't want to do this again any time soon! My heart goes out to all the people that are loosing sales due to the low appraisals. Hopefully in the future this trend will stop. Its very difficult to buy a home if not almost impossiable now days with appraisals comming in low across the country! Banks more and more are expecting people to come in and make up the difference themselfs. Its truely trying times. The home buying expirence has been far from pleasant! I'm glad it is over now! Finally!