Home Buying in Tracy>Question Details

Kmccloud, Home Buyer in Tracy, CA

BPO? Is my process ending?

Asked by Kmccloud, Tracy, CA Thu Jun 11, 2009

I have an offer on a short sale. I am about 5 weeks into the process. I was told that a BPO would be taking place in the next 7 days. What is that and what part of the process is that? Does it mean the short sale has been approved? Should I be almost out of this nightmare of a process???

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Kmccloud,

Sorry to say, but you are just getting started. When a BPO is finally back in the hands of the bank, they might order another BPO, who knows, but be assured that they will take their sweet time. They never get in a hurry with the short sales. They really analyze every aspect of the transaction with a fine tooth comb.

So hang in there and maybe you'll luck out, and it will go faster than you think.

Jerry Flynn
Old West Realty Inc.
925-820-6550
http://housebiz.ca
1 vote Thank Flag Link Thu Jun 11, 2009
Hello Kmccloud,

The seller's agent should NOT meet with the BPO agent. I do thousands of BPOs, have taught thousands of agents on BPOs, and this is the biggest killer of a short sale. It gets worse because agents have been taken to court because it can be considered price fixing. If this happens does the homeowner have recourse too because you broke a rule that caused things to fall apart? Think about that, because they do and they have won in court already. Talking with other agents about comps and pricing is different than talking with an agent involved in the transaction.

If the home listed short sale is not at a rediculous price, and there is no funny business, it should not be a problem. If the agent is inexperienced or from out of the area, there are ways to dispute the BPO to get another one ordered. Just keep a positive attitude realizing that another step towards the finish line has been taken. There are many ways to find out who is doing the BPO without meeting with or influencing them, and then you can see for yourself how long they've been licensed or where they are from.

Seriously, if an agent tries to meet me or influence me in any way, I send the BPO back and the whole process of ordering another one can take however long. There is too much of this going on and this is how realtors get a bad reputation.
Web Reference: http://www.bpoteaching.com
2 votes Thank Flag Link Tue Sep 14, 2010
I'm sorry to say, the process has just begun. The BPO valuation is the beginning of the process. Usually the process is: 1. home is marketed, 2. seller and listing agent prepare short sale package and financials, 3. offer is accepted and submitted to bank(s), then 4. a BPO or several are ordered. After that, is probably the longest waiting period and where most short sales sit in a holding pattern. This is where a negotiator or a loss mit(short for mitigation) manager is assigned. Then there is a negotiation process with responses from these negotiations taking 2-6 weeks each time around. You're about 20% done. Sorry...
0 votes Thank Flag Link Fri Sep 17, 2010
We put an offer on a short sale on April 18th. We just heard on May 29th our file was being assigned to a negotiator. On Monday June 8th we were told the BPO was going to be done on Friday June 12th. We are suppose to hear back by this Thursday what they were told about the BPO. My realtor doesn't think they will counter offer since the amount we offered is within the comps. I think it is a step closer... At least we know "something is being done!" I have read some horror stories on the internet where people wait 6 months not even to have a negotiator assigned... My realtor stated the bank will hire a realtor to do the BPO. It is not an official appraisal but close to it. The sellers realtor should meet the person doing the BPO. I have also read that sometimes the banks order more than one BPO... I wish my short sale offer would just be approved!!! We are currently living in a rental home. Our rental lease is up... Since we do not have a home yet, we have to move into an apartment... Talk about a stressful moment in our lives... It will all work out... Good luck to yOU!
0 votes Thank Flag Link Sun Jun 14, 2009
BPO - means Broker Pricing Opinion, base on experience as soon as the bank recieved the offers and short sale package, that is when they order the BPO. BPO is like the appraisal, it is use by the bank to determine the value of the property. After receiving the BPO, given that the short sale package is complete, the file will now be assigned to the negotiator. Once it is in the hands of the negotiator, that is when the listing agent should start negotiating for the approval.

You still have another 2 to 3 weeks, then your loan process which is another 3 to 4 weeks. So another 6 to 8 weeks..
0 votes Thank Flag Link Sat Jun 13, 2009
Based in my experiences in Sussex County, NJ, I think this is GREAT news. Means the bank is seriously considering your offer. No, the sale hasn't yet been approved but you're much closer now! My distressed property series might be of interest...

Good luck!
0 votes Thank Flag Link Thu Jun 11, 2009
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