Replies to This Discussion

Permalink Reply by Smitty on February 6, 2012 at 2:54am

Joseph is dead on.  We take the lockbox off after the contract is signed.  No reason to let LENDERS access the place on their own. 

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Permalink Reply by Jim Schneider on February 3, 2012 at 5:42pm

The more important thing to consider is, what can be done to combat bad bpo values? Well for one, you can pull the lock box and insist on meeting the agent, if someone else comes to the door, don't let them in and report it to the servicer and investor.

Second, if there are repair costs, get a written estimate to the bpo agent. There's a huge time crunch to get bpo's done, there is no way for the bpo agent to get compensated for estimating all of the repair costs.

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Permalink Reply by Mark Sawyer on February 5, 2012 at 7:27am

Vigorous screening of BPO agents is essential.  I have had BPO agents send their wives to do the inspection, I've had agents who's license has been inactive for years arrive to do a BPO and on and on.  My feeling is that a lot of BPO agents have found themselves a new career because they can't compete in a difficult market.  Last year one of the local Realtor boards estimated that one half of the active brokers in our state did not close a single side of a transaction in 2010.  I believe these brokers have all become BPO agents.

 

I use Centralized Showing Service to set all the showings of my listings.  I have left specific instructions on all my listings indicating a number of brokers who are barred from showing any of my listings for any reason.  These include the incompetent and those lacking in integrity.  I also prohibit REO agents from viewing my listings as long as my listing is active.  Early last year, I had a BPO agent return a significantly inflated value on a property.  I was working with a negotiator I've done dozens of deals with in the past and he informed me that this BPO agent indicated to the lender that if she had the listing as an REO property she could get nearly double the offer that had been submitted. 

 

In another case, the short sale lender ordered an appraisal.  I met the appraiser and interviewed her as she was inspecting the property.  It turned out that this was the first appraisal she'd done in over ten years.  She went inactive nearly 11 years ago because she didn't like having "...to go look for business."  She was selling cookware at JCPenny's when she was recruited by some appraisal mill off the inactive appraiser roster maintained by the real estate commission and offered a salary to do appraisals.  Of course her appraisal  came in $110K over an already approved short sale value.  The sale closed but I had to jump through a number of last minute hoops but prevailed by challenging the appraiser's qualifications and experience.

 

My policy is that I meet every BPO agent or appraiser that wants to view any of my listings.  I personally attend every BPO or appraisal.  If they don't like that then they don't get in to the property.  If they won't provide me with enough information to check out their credentials, they don't get in to the property.  I meet them with my own CMA and detailed descriptions and pictures of any defects or deffered maintenance.  If they won't accept them, I escort them off the property.

 

As Realtors and Brokers we are required by law and regulation to display an exceptional level of knowledge and professionalism.  I expect the same standard from anyone that may involve themselves in a transaction in a way that may result in a detriment to my clients.

 

Mark Sawyer

 

 

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Permalink Reply by Ben Benita on February 5, 2012 at 5:40pm

Jason is right and I have been saying this for years:

THE SERVICER HAS NO ZERO ZIPPY ZILCH NADA (for my Spansih speaking agents) financial incnetive to do ANYTHING on the short sale quickly.

Serivcers are typically paid DOUBLE the servicing fees for handing nn-performing notes - FACT

BPO's - FACT some BPO agents DO get the foreclosure listing if your short sale property goes to foreclosure, not always, BUT, it does happen (ask your BPO agent how many REO/foreclosure listings they have to ascertain this, or, you can look it up in most places)

Out of town BPO agents - also correct, we have had agents come from as far as 2 hours away to do BPO's here in the Washington DC area.....it happens, plan accordingly

ALWAYS ALWAYS ALWAYS keep in mind these things:

1 - BPO can be challenged if you contact the Investor directly - can be a pain to do, BUT, it is a MUST DO in some cases....learn how to do this, write me at [email protected] if you do not know

2- - the people you most often deal with on your short sale are called _____________ (anybody know the answer )
- NEGOTIATORS - they get paid to NEGOTIATE with you and get as much money as possible for the Investor on the note, and YES, this includes being a little less than honest on occaision
(keep in mind they have NO fiduciary responsibility to anyone BUT the homeowners.....try asking them if YOU can "record the phone call for quality assurance" like they do and 1000000% of the time you will not be allowed to do so)

I could go on for pages, just keep this im mind

BPO is the SINGLE MOST IMPORTANT PART OF THE SHORT SALE PUZZLE

You MUST know how to counter a high BPO if/when it comes in.

Sending in your own will help, but, it is not 100%.

You can find out the name of the company that did the BPO on your short sale and pay someone from there to do a new BPO, you can argue with the Servicer, escalate your file, contact the Investor directly, ask the BUyer to come up in price.....LOTS of ways to handle a bad BPO.

Just keep fighting guys, your Sellers need you now more than ever!!!!!

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Permalink Reply by Daniel Cecil on May 23, 2013 at 10:12am

I was just contacted by a company called Footprints RE that was looking for BPO agents and was promised listings and BPO work if I sent in almost 400.00. Another scam company?

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Permalink Reply by Patrick Willard on May 23, 2013 at 10:21am

Yes, I've heard alot about them recently in several REO groups I belong too. In fact if I remember right it's a company that scammed a lot of agents, closed down and a few months later opened up under the new name to do it again. Any company that wants an upfront fee with the promise of BPO/REO work is one to stay clear of.

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Permalink Reply by Daniel Cecil on May 23, 2013 at 10:45am

Thanks for the information. They sounded too good to be true. 

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