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HomeBuyer, Home Buyer in California

How much longer once lender has ordered a BPO for a short sale to close?

Asked by HomeBuyer, California Thu May 15, 2008

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I wish I could put you at ease with the kind of answer you might want, but the BPO has noting to do with the time-table in a foreclosure sale. Moreover, there's no way to make the seller of an REO set a time-table or even reveal an offer's progress through the decision making process. They are essentially shopping for the best offer, and tend to sit on the offers they receive until they figure they cannot do better.
2 votes Thank Flag Link Thu May 15, 2008
Hello Home Buyer. While the turnaround time for BPOs is realtively short (i.e., the agent that gets the assignment usually only has a few days to complete it), there's no way to tell how long after the BPO has been completed the short sale will close. As a matter of fact, there is no guarantee that the bank will even approve the short sale. I have had banks tell me that they were still waiting for the BPO although I knew that the BPO had been turned in long time ago. Some banks use every excuse in the book why they can't make a decision yet. Some banks also obtain more than one BPO to determine REO value as they want to know how much they'd be able to get for the house if they take it back in foreclosure. I am sorry I can't give you a more precise answer, but the mere fact that a BPO has been ordered is only an indication that the case worker has seen the file and has started working on it. Good luck.
1 vote Thank Flag Link Thu May 15, 2008
Ute Ferdig -…, Real Estate Pro in New Castle, DE
In my experience, only the negotiator representing the bank can establish this timeline. The listing agent or home owner should be able to contact the negotiator and get an estimate of how much time they have to review the BPO. All timelines depend on the lender. For example, Countrywide at this very moment is saying that it will take 8-10 weeks for the whole process to get to closing, 2 weeks to get a negotiator assigned to the case after receiving an initial offer, by the 5th week they will have ordered 2 BPOs and a formal appraisal and then they have 3-5 weeks to review and either counter or ratify the offer. But remember every lender is different, and only their negotiator can advise you.
0 votes Thank Flag Link Thu May 15, 2008
We had an accepted offer from the sellers on January 18th, 2008. In late February, the BPO was ordered and two weeks later we had word that it had been received by the lender. We didn't close until April 11th and I'm pretty sure it only happened that quickly because we were already two weeks past all of our contract expiration dates and we told the lender that we were losing our mortgage committment. Since the interest rates had increased by almost a full point since our lock-in, our monthly payment would jump by about 10% and we weren't interested in the house at that price. Also, we were in probably the best position for a short sale in that the house we were trying to buy had received no mortgage payments in 12 months, had 3 foreclosure auctions postponed due to various stalling techniques by the sellers, the sellers had declared bankruptcy and we had no contigincies on the purchase (other than a must-close-by-date).

Good Luck! If the sale goes through and you love the house, it will all have been worth it!
0 votes Thank Flag Link Thu May 15, 2008
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