Home Buying in 03842>Question Details

Laura, Home Buyer in 03842

What can be done about a last minute BPO that came in way too high?

Asked by Laura, 03842 Sat Oct 24, 2009

We currently have an full price offer of $249,000 on a short sale property. The offer has been on the table for 6 months undergoing the approval process. We got all the way to the last stage for the investor's to sign the final papers and close in 30 days. The bank ordered another BPO that came in at $285,000! Now they want more money. The list price was always 249k and apparently got approval up until this point. What can be done about this last minute, substantially higher BPO?? We had verbal approval to close at 249k within 30 days just last week!

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Answers

8
Tom McGuirk’s answer
Do you have a professional negotiator working on your behalf?

Yes, the BPO is high but a skilled negotiator should be able to overcome that obstacle. I hope you are not navigating this this mine field without experience on your side.

TOM

Tom McGuirk
Weichert REALTORS Points East Yankee Trader
603-474-1040
603-944-6465 (C)
1 vote Thank Flag Link Sun Feb 21, 2010
Laura,

All good answers, and I agree, you must have a professional negotiating this for you. The BPO can certainly be challenged with current comps and an experienced negotiator should be able to improve the situation.

Good Luck
0 votes Thank Flag Link Fri Mar 9, 2012
Laura,

All good answers, and I agree, you must have a professional negotiating this for you. The BPO can certainly be challenged with current comps and an experienced negotiator should be able to improve the situation.

Good Luck
0 votes Thank Flag Link Fri Mar 9, 2012
Dispute it! Below is my blog on how to do it. Negotiators aren't even aware of this possibility, at least none of the 20 plus I've talked to. Big help they were.

http://www.trulia.com/blog/kevinolson/2010/10/how_to_dispute…
0 votes Thank Flag Link Wed Oct 6, 2010
Tom McGuirk is right. You need a professional negotiator. I'm a buyer and purchase several properties per month and if I make offers on short sales, we provide the seller with a lawyer that has negotiated over 300 short sales for the seller's behalf. The lawyer can demand action from the lender, whereas the rest of us can "request" it.
Good luck.
http://rapidpropertyrelief.com
0 votes Thank Flag Link Fri Mar 5, 2010
Unfortanately verbal acceptance is not enforceable. Until the short sale accepatnce letter is signed by the seller and then the buyer and then most important the lender, it is not approved. There are specific terms for the seller that the bank wants them to agree to and sign. Right now the listing agent needs to request a copy of that bpo. In teh mean time should complete their own bpo with the most similar comparables. For sales within 3 months, if none then within 6 months. Then use the most similar comparable homes currently listed. As far as pricing, the bank doesnt set the short sale price, the listing agent does, because it is full price in the sense what the agent put on the property, it isnt always what todays value is. The bank doesnt have to accept any price lower than what is owed, they always "consider it" and usually take 3-6 months, but teh bank only loses money in a short sale, if it goes to foreclosure, and there is private mortgage insurance, they will get paid back with less of a loss. The bpo should include an as is value not using any reo comps and then a 30 day quick sale price that the bank could get at auction. Your offer should be in the middle, with the closer to todays real value as possible. Good luck working things out.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Oct 27, 2009
In contract law a verbal contract is enforceable. PROVING that you had a verbal contract is always tough. If you have witnesses who heard that offer accepted you can push the bank to keep their end of the bargain. But if it goes to court it would be expensive and hard to win. Perhaps your only reasobale recourse at this time is to talk to the bank again. Tell them you can close at the amount quoted. If they do not wish to ask them to pay for any inspections you did as they changed the terms. Will they do it? Not likely. But all you have now is bargaining. And hope they go along. Maybe they will want a sale even if it means living with the original agreement.
0 votes Thank Flag Link Sun Oct 25, 2009
Dear Laura:

I feel your pain. Not sure if it would be possible for you to obtain a copy of that new BPO so that the listing agency can go back to the lender with their original work and that. This is one of the challenges of buying in a short sale environment. Sounds like you are on top of it. I might suggest that you talk with Tom Girard at The Workout Group, an affiliate of the Carter Law Office in Windham, NH about your case. Tom is at cell: 978/835-4688 which is the best way to reach him. The Workout Group specializes in handling short sales and is paid by the lender and they work with both buyers and sellers. They know how to speak the lender's language and cut red tape.

Best Regards,

Chuck Braxton, REALTOR GRI
Roche Realty Group, Inc., Meredith, NH
603/677-2154
cbraxton@metrocast.net
Web Reference: http://www.ChuckBraxton.com
0 votes Thank Flag Link Sun Oct 25, 2009
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