Eric, BPO stands for Broker Price Opinion which is an estimated sales price for 30 days, 60 day and longer, similar to an appraisal. PMI stands for Private Mortgage Insurance, which protects the Mortgage lender in case of default. The difficulty in a short sale is that there must be agreement on slaes price by the Mortgage owner, the servicer, and the Insurer. Now you compound that with two mortgages and even more so today because the mortgage has been probably been sold off in an investment package that has a Trustee that must follow the guidelines of the trust agreement. Simply put it is a mess to unwind.

Hi Eric, I don't see the answer you are referring to but let's see if I can sort this out for you.

Maybe you are referring to PMI and BPO? PMI is private mortgage insurance and is an insurance policy paid for by the borrower OR the lender that insures the lender against loss related to a mortgage. For example: You buy a house for $100,000and finance the entire purchase. The lender, will probably require that an insurance policy (PMI) be place don the loan to cover 20% of the mortgage amount or $20,000. If you default the PMI is responsible to pay up to 20% or $20,000. This is the reason they have a say so in whether or not a "short sale" can be accepted.

BPO is "broker price opinion" and is basically an opinion of value of a particular property given my a licensee or broker. Lender use BPOs to price pre foreclosure and foreclosure properties.

I hope this helped to answer your question