REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
email@example.com | http://www.AustinListed.com
Usually if you are selling a home as a short-sale, your mortgage company will order a BPO to determine that the list price and/or offer from a buyer is at market value. Many times your mortgage company will also order an appraisal - and once they do, the clock starts ticking. You MUST sell the home within a certain timeframe from the appraisal...otherwise it will expire, and you are not always guaranteed the opportunity to get another one (which means the home could go into foreclosure).
If you are buying a home - there will likely be no BPO done (unless you are buying a foreclosure, and in that case the foreclosure bank will order a BPO prior to listing it). However, as a buyer that will not affect you directly. When purchasing a home, your lender will order an appraisal to be done after your inspection period is over.
BPO = Broker Price Opinion (usually only used on short sales and foreclosures)
Appraisal = Market Value or Opinion of Value from a certified appraiser using industry standards (used with almost EVERY sale where a buyer is getting a mortgage loan).
Good luck! I hope this information is helpful.
Melissa Hailey - North Texas Top Team, Realtors
Coldwell Banker Jane Henry Realtors
Things don't move fast in a short sale and typically closing is in 60 days eventhough I have seen longer.
Susie Kay, RealtorÂ®
GRI, CHMS, SFR
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
Servicing your real estate need is my priority!
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.
BPO is usually only performed when its a foreclosure and the bank needs a broker's opinion to determine what price to list. But as for short sale, its more likely the buyer's lender required an apprisial which usually get done within a week of an executed contract.
JP and Associate