Home Buying in Chatsworth>Question Details

l8more, Home Buyer in Chatsworth, CA

Short Sale BPO came in 15K lower than offer. Will the bank approve the appraised value or my offer price?

Asked by l8more, Chatsworth, CA Sun Sep 16, 2012

We are in day 27 of submission had a BPO and for all intents and purposes everything else seems to be going smoothly. Short Sale proof of hardship, one loan (Wells Fargo), sellers already moving on, not trying to save the house. Doing traditional loan and not asking for closing costs. We do have any more cash out of pocket money to close the gap.

Help the community by answering this question:


Hi Jane;

Thanks for prompt responce.

As you read my e mail I am looking for 2bed/1+bath One story sunny and bright in nice areas closer to Woodland hills that my daughter is living. I would like 55+ active community. Because I am 63 years old very active out going person. If I do not work any more like to be busy.

Wright now I am working out of town and looing on line for property to find a good safe place to live comfortably when I come back home on first week of April. I like to look at without waisting your time and my time to buy a home. My price range is between 175,000 - 250,00. I am paying cash.

Looking forward hearing from you.

Best regards

0 votes Thank Flag Link Mon Feb 18, 2013
Hi Fay,
There are a few condo units available in your price range. Unfortunately, none are 55+ active communities. Do you want to limit your looking to 55+ communities? If yes, it will require you to live some distance from your daughter since such developments just don't exist in close proximity to Woodland Hills. Please let me know what parking situation you require. Not all complexes have private garages but do have subterranean or carport parking. There are 1 level condos but some units may be located on upper floors of the building. Do you require a private laundry area?
Flag Tue Feb 19, 2013
18more...did you mean that the Short Sale BPO came in 15K HIGHER than your offer? Your initial question made it sound like you wanted to lower your offer by $15K because the bank's BPO came in lower than your offer price.
0 votes Thank Flag Link Sun Sep 16, 2012
I like Skip's response - I am dealing with very scenario on a short sale I'm involved with right now - the BPO is higher than our offer by $20K+. We have submitted comps to try to substantiate our view and that is with the negotiator now. We are hopeful that we will prevail, but the BPO has cast a doubt in the mind of the bank. With the higher valuation they may not be willing to absorb as great of a loss.

Time will tell...

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Sun Sep 16, 2012
I am surprised that you were informed as to the amount of the BPO valuation obtained by the short sale lender. Usually this is confidential information that is not shared with either the listing or selling agents on a short sale transaction. As for your offer price, it was what you were willing to pay for the property at the time the offer was negotiated and I would assume you had the financial ability to close the transaction at that price.

Your statement & question are a bit confusing. Was the short sale approved at your offer price? Has your lender already had the home appraised for your purchase money loan? Is that the appraisal that came $15K lower than your offer price, leaving a $15K gap between the amount your lender will loan and the amount you need to borrow to complete the transaction at your offer price? Normally, you don't open escrow or order the appraisal done until you have full written short sale approval by all short sale lenders.

I assume your offer is contingent upon you obtaining loan approval. If you are unable to obtain loan approval as per the terms of your contract you may not be obligated to close the transaction. The seller is not obligated to reduce the sales price to accommodate your loan requirements.

You can always attempt to renegotiate the terms of the short sale approval due to the appraisal problem, but the short sale lenders are under no obligation to agree and may decline the request.
0 votes Thank Flag Link Sun Sep 16, 2012
What is the offer at? It's all relative to the purchase price and NET to the lender.
0 votes Thank Flag Link Sun Sep 16, 2012
The BPO is not an appraised value. It is an opinion from a Realtor of what the property is worth. The short sale lender does this to determine if the offer is fair or not. I believe they will accept your offer as it is at least market value as determined by the BPO. If your offer gets accepted, YOUR lender will have an appraisal done (paid by you). This appraisal will determine how much your lender will loan on the property.
Good luck,
0 votes Thank Flag Link Sun Sep 16, 2012
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