Home Selling in Gainesville>Question Details

Johnny Yanko…, Real Estate Pro in Manassas, VA

Have you ever had a bad BPO on a short sale?

Asked by Johnny Yankoviak, Manassas, VA Sun Jan 16, 2011

More specifically, the list contract price are very close to recently sold homes in the area. An interior Broker Price Opinion or BPO is ordered, but comes in 40 or 50% more than the damaged property will appraise for.

The bank servicer and/or investor says, "yeah man, but our BPO says_____."

What's up with that? And doesn't the bank know, that if a property doesn't appraise, home buyers can't get a loan, and if they can't get a loan, their only option is to find someone with cash, who is probably going to submit an even lower offer?

What do you think?

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Answers

5
My copmany negotiates short sales for agents and I can tell you there are MANY MANY factors that must be accounted for with this, here are just 2 of them:

1 - Is there mortgage insurance, if there is, find out what the coverage ratio is. This will tell you how much the Ivnestor will get paid if they foreclose

2 - You can ALWAYS request a new BPO be ordered. We have a direct contact (e-mail) for this department at B of A and others

ALWAYS ALWAYS ALWAYS ALWAYS (you get the point) remember the persons in loss mit. are called "negotiators" for a reason.....NEVER expect them to give you their lowest/true offer (you wouldn't expect a car salesman to do this would you)?
For FHA loans youc an request HUD Form 90045, this will tell you the EXACT payoff numbers that will be approved. For VA Loans, they will always tell you what their valuations came in at if you know who to call


All my best to those on the short sale battlefields!!!
1 vote Thank Flag Link Tue Feb 8, 2011
I've got several blogs on Trulia relating to this exact issue, as there are ways to prevent it and even beat the situation. Bottom line is that you can dispute the BPO based on the agent, agent's location, agent's experience, was it an exterior BPO with interior damages, etc. It's not the end of the line, and just asking for the form should get it started.
Web Reference: http://www.bpoteaching.com
1 vote Thank Flag Link Sun Jan 16, 2011
Johnny, Has the servicer asked for the listing history? If not see if you can use it to have them get a second BPO. I know it is very frustrating!!! Is there an escalation procedure with the servicer? Best of Luck!
1 vote Thank Flag Link Sun Jan 16, 2011
Unfortunately, lenders don’t choose the agents that do their BPOs by their true competence. It is very much the luck of the draw. When I submit an offer for a short sale on one of my listings I also like to submit my own preemptive BPO with photos to support condition and repairs. This gets my comps and information into the file which can be helpful in dealing with and disputing a less than accurate BPO later.
1 vote Thank Flag Link Sun Jan 16, 2011
It happens. Most of the banks use 3rd party companies to get their BPO values. You can contest that BPO by providing your comparables and by requesting another BPO done.

It is always helpful to know who is going to do that BPO so you know if that is a local agent or the agent out of the area. The more you know the better are your chances of getting 2nd BPO requested.
1 vote Thank Flag Link Sun Jan 16, 2011
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