There is a condo I had bid on. The contract is final and the asking price was $161,000. I had it appraised since I am going with an fha mortgage and the appraisal came back at $144,000. My question is the seller has only lived there for 5 months and they purchased it for $144,000. Are they by law allowed to make $17,000 profit and what will happen now since the mortgage company will not approve $161,000? I have paid for a home inspection and a termite inspection will I lose this money?

There is a condo I had bid on. The contract is final and the asking price was $161,000. I had it appraised since i am going with an fha mortgage and the appraisal came back at $144,000. My question is the seller has only lived there for 5 months and they purchased it for $144,000. Are they by law allowed to make $17,000 profit and what will happen now since the mortgage company will not approve $161,000? I have paid for a home inspection and a termite inspection will I lose this money?


Was this a auction? Or a contract to buy??

Contract to buy