Lender BPO values “wide variance” with buyers FHA Appraisal value

Lender BPO values “wide variance” with buyers FHA Appraisal value.

Have a transaction with the sellers 2 mortgages have default balances of approximately $300,000 and a second with $225,000.

Listed the property at $410,000 and had to reduce that price through a 4-6 month showing history. Approximately 40 prospect showings without an offer then we get one at $345,000 that came close to the updated estimate of recently sold comps.

The Buyer ordered his FHA appraisal before we received written approval from the seller’s lien holders. That buyer-borrower’s report value came back at $325,000. We resubmitted that price as the short sale purchase price with an addendum.

The first lien holders BPO Value came back at $425,000 and they (Chase) declined the short sale. Their actual payoff balance is only $301,000.

The second lien holders BPO Value came back at $535,000. Their (SunTrust) default balance is around $225,000.

THE QUESTION: Does anyone have any suggestions on how we can convince Chase into accepting the $325,000 purchase price? Any advice or input appreciated.  

Views: 295

Replies to This Discussion

Permalink Reply by Patrick Smith on October 31, 2011 at 4:51am

I've defeated Chase valuation insanity on FNMA loans before but it was painful and required that I get an independent appraisal for submission.  I learned that Chase mostly uses a market insight tool to set valuation, which is only as accurate as 'sometime' in the last 12 months and is no more targeted than the zip code.  In other words, useless.

 

Permalink Reply by Pat Chadwell on October 31, 2011 at 5:55am

I think part of it also BPO agents not taking the time to get a true value.  They are not paid much for their product.  I try to meet those agents with comps and explain the area so they are not using comps from another neighborhood for instance.  They are usually happy for the assistance.

 

Permalink Reply by SE Davis on October 31, 2011 at 9:46am

Lucked Out today.

The subordinate lien holder SunTrust wrote their approval matching my Prelim HUD1 on this transaction today after I sent them the buyers FHA appraisal Friday morning. NO cash contribution from the seller NO DJ collection post closing. SWEET!

I'm sending that written approval, a copy of MY BPO, a copy of the Buyers underwriters DU-Approve Eligible doc and an exception cover letter to Chase tomorrow morning. I may include a copy of their illegal MERS assignment along with it.

Their (Chase loss) will only be around $10,000 (3.3%) on a $301,000 FULL DEFAULT BALANCE.

Thank you for your comments and I'll let everyone know if this strategy works.

 

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************