But to be sure, if you are the seller, ask the person doing the BPO or the appraisal who they are working for....your lender, or the buyer's lender.
The timing of the approval and closing typically depend on the SELLER'S LENDER. The closing date deadline is specified in the approval letter of the SELLER'S LENDER and is usually 30 days or so after the approval letter is issued which is typically within 30 days after the BPO is ordered.
So, based on my recent experience with several banks including HSBC, BofA and WF, the answer to your question about how long between the SELLER'S LENDER BPO and the closing date is typically 45 to 60 days. (During this period after the approval letter is issued by the SELLER'S LENDER, the buyer gets their loan approved which includes a separate appraisal of the property engaged by the BUYER'S LENDER. If the BUYER'S LENDER is unable to close by the closing date deadline specified in the approval letter, then an extension must be requested and approved by the SELLER'S LENDER. This could delay the process.)
Brent Rice, SFR and Top Recommended Broker
The Rice Group, Inc.
If you wish to find out whether the role of a BPO or an appraiser comes first in a short sale, it is the appraiser who needs to perform his task first. Once the appraiser offers an appraisal value of the concerned property, the BPO then needs to validate the appraisal value.
And again for how long it will take, no one .... at least no Realtor can actually say. Again it will depend on the bank who is deciding on the short sale... some are fast, some are slow, there are big banksand smaller local ones. But in general Sellers and Buyers of Short Sales should be more patient than for a regular sale...
I hope for your sake that you are working with a Realtor, either your listing agent who if you are the
short sale owner of the property listed the property on your behalf and is in contact with the lender who is holding the loan, if you are the buyer of a short sale, please I hope you have a Realtor on your side
and you do have patience...
Depending on your lender, they will order both a BPO and an appraisal, there is no rule which will come first, it will vary from lender to lender, and from transaction to transaction. Some lenders will only order the BPO, and some will only do an appraisal and some might not do any.
If you are referring to the buyer's appraisal that will depend also which comes first. The buyer's lender may start the mortgage application a little prematurely therefore the appraisal is done before your BPO. Not necessarily a good idea on the buyers part because a mortgage commitment expires, and portion of the buyers mortgage application may have to be reverified at the expense of the buyer.
Hope that helps.
It really depends on what the lender orders first, broker opinion or appraisal. I would also depend on commercial vs. residential property. Timing for closing would really depend on how long it takes the seller's bank to approve the sale, some banks are more efficient than others.
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