Replies to This Discussion

Permalink Reply by Kim Himmel on January 11, 2011 at 5:21am

The bank will typically hold that BPO for 3 months and will not do another one until that one expires, what you need to do is to send in 6 resent comparables to the negotiator and request them to send in a variance. Sometimes this works and if not they may go ahead and order another BPO.  When we are working with agents we always tell the agents to go when the BPO is being done. 

• ▶ Reply

Permalink Reply by Jim Schneider on January 11, 2011 at 6:09am

Pat,

would you be willing to fill in a few details and post in the bpo group here? I've delt with many bpo issues, sold many short sales, and completed many bpo's myself. I'd be happy to help if I'm able.

Details:

1. who is the lender or lenders

2. what kind of property is it.

3. Was this an exterior or interior bpo, and if interior, did you meet the agent.

4. Is this an area with a lot of similar comps, (like a subdivision development or large condo complex) or an area with relatively few similar properties nearby (within 1 mile) and recently sold (like within the last 3-6 months)

5. When was the bpo performed

6. Have you tried to get, or were you able to get a copy of the bpo

7. Has the buyer had their appraisal yet.

 

With this information, I may be able to show you a strategy or two that will help you complete your short sale.

Jim Schneider

Chicago Broker

• ▶ Reply

Permalink Reply by Smitty on January 11, 2011 at 6:15am

Pat,

 

We've asked the lender to order a new BPO after we submitted our reasons why the value was off, and we offered to pay for it.  We have also had the buyer pay for an appraisal and submitted it.

 

Aside from that, if there is no auction, let the file close and try to resubmit later.

 

• ▶ Reply

Permalink Reply by Pat Glenn on January 12, 2011 at 5:59am

Thanks Jim, 

I started with Kim's suggestion first and submitted 6 active and 6 sold comparables yesterday. This morning the Negotiator replied that they had a licensed appraiser do the BPO so it was accurate and they are sticking by it. 

Here are the additional details you requested.. 

-1 lender - Bank of America  :(

-Single family owner occupied residence

-Not sure if they did an interior but I am assuming so. I did not meet the Appraiser unfortunately, as I was just brought in last week to take over this file. 

-There are plenty of good comps. I sent 6 active and 6 sold to them yesterday. The solds were within a mile, similar sq footage (within 200 sq feet either way), sold within the past 3 months. 

-I am not certain when the BPO was performed but I believe within the past 3 weeks. 

-I requested a copy of the BPO this morning and have not gotten a response yet. 

-It's a cash transaction so the buyer won't be getting an appraisal. 

 

Thanks in advance for your help..

Pat Glenn

Jim Schneider said:

Pat,

would you be willing to fill in a few details and post in the bpo group here? I've delt with many bpo issues, sold many short sales, and completed many bpo's myself. I'd be happy to help if I'm able.

Details:

1. who is the lender or lenders

2. what kind of property is it.

3. Was this an exterior or interior bpo, and if interior, did you meet the agent.

4. Is this an area with a lot of similar comps, (like a subdivision development or large condo complex) or an area with relatively few similar properties nearby (within 1 mile) and recently sold (like within the last 3-6 months)

5. When was the bpo performed

6. Have you tried to get, or were you able to get a copy of the bpo

7. Has the buyer had their appraisal yet.

 

With this information, I may be able to show you a strategy or two that will help you complete your short sale.

Jim Schneider

Chicago Broker

• ▶ Reply

Permalink Reply by Debra Enos on January 13, 2011 at 1:07pm

There are a lot of bad BPO's out there.  If you are a CDPE there is a webinar on January 20th on how to combate a high BPO.  I found a BPO company where the agent only supplies listings, active and solds, no adjustments.   The company is only looking for square footage, # rooms ...and sometimes have to go out miles to get the same square footage to use as a comp.  They don't care if it is is like condition or not.  They feed the info into a computer system and pop's out a BPO value...... I have no doubt that many are coming in off target in both directions.  I have a short sale listing and just got a call from an appraiser to schedule an appointment.  So glad that it isn't a BPO on this one.  Good luck.

• ▶ Reply

Permalink Reply by Kimberley Kelly on January 14, 2011 at 5:14am

This is a HUGE problem.  I got a bad BPO on a home here in the Rancho Mirage area.  Closed the file.  Re-listed at their new BPO price.  No action.  Nothing until over the next 4 weeks, I lowered it to the same price I had it at before..got an immediate cash offer.  Submitted with recent CMA and new BPO that I had done..we'll see if I can get any forward movement.  CHASE, one PML loan, primary Res, qualified Seller. 

 

I see a real problem as the Short Sales move up the price ladders.  Because here in the CA desert resort area, the golf course homes and gated communities are just starting to be hit hard, there are not enough comps yet.  The out of town appraisers do not get what's going on and pull from active listings as comps..won't work of course.  High end market will settle down in 2011 here in my area, and then the BPO's will come in more realistically..ever hopeful..

• ▶ Reply