I have an offer in on a bank owned house but the appraisal came in about $7k less than my offer. In my opinion, the appraisal is too low. The seller (a small bank) also believes that the appraisal is too low and doesn't want to reduce the price any lower. However, the mortgage company that I went through says that it will only lend based on the original appraisal.
Is it possible to go straight to the bank that owns the property with my original offer and will they fund the deal themselves? I have enough cash for a 20% down payment and my credit scores are in the low 800's.