Christie Mil…, Home Buyer in Ann Arbor, MI

Why would a bank do 3, yes 3 BPOs on a short sale property?

Asked by Christie Miller, Ann Arbor, MI Mon Oct 31, 2011

I was under the impression after a BPO I should recieve an answer shortly?

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BEST ANSWER
Chistie,

You cannot use logic as a means to understands banks. They are motivated by two things; greed and fear. Right now fear is ruling. I work in the Bryant-Pattengill areas if I can help anything.

David Wallner
Prudential Snyder and Company
734 649-2710
0 votes Thank Flag Link Mon Oct 31, 2011
It's as Karen said ...

Banks usually order 2 BPOs on each property. If both BPOs do not come in at about the same market value, then a 3rd is ordered to see which of the two previous BPOs is closer to the current market value.
Web Reference: http://HomeRescuePlans.com
0 votes Thank Flag Link Tue Nov 1, 2011
Christie,

I am a local buyers representative and CDPE or distressed property expert. If you need further assistance, please not my website below. I would be happy to help move you through the process .
0 votes Thank Flag Link Tue Nov 1, 2011
Christie:

Good Morning!! As everyone has said nobody can second guess what the lenders are doing. In my experience in doing BPO's for lenders. I find that when the 1st 2 BPO's are more than 10% apart they will either order an appraisal or a 3rd BPO.

Good Luck,

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes Thank Flag Link Tue Nov 1, 2011
Christie,
David is exactly right, you can't use logic to understand a bank's actions.

Often there will be different people at banks who make decisions about a particular file. One may have no idea what another is doing.

There is no guarantee that you will get a response after one, two, or three Broker Price Opinions (BPO).

There could have been data in the BPOs that conflicts with what was already in the file, they could have discovered conflicts of interest in the BPOs, there really is no way to know.

Good luck with your efforts.
0 votes Thank Flag Link Mon Oct 31, 2011
When I was doing a lot of BPO's I did several for the same property over a short period of time and sometimes fro different BPO companies for the same property. Banks get second opinions and do more BPO's after a few weeks or a month to be able to cover their butts from their bosses.
0 votes Thank Flag Link Mon Oct 31, 2011
They are not required to tell you anything about their internal process. I am surprised they told you they have done three BPO’s.
0 votes Thank Flag Link Mon Oct 31, 2011
Hi Christie,

Were the 3 BPOs done within a reasonable time frame? If they were done months apart, this could be a reason. Or, if the BPOs were not done correctly, this could be another reason. It is hard to answer this without knowing all the conditions. Have your Realtor ask the Listing Agent to find out from the Short Sale lender(s) why they are doing multiple BPOs.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Mon Oct 31, 2011
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