If you don't agree on the value...question the BPO!
Just wanted to share my recent experience on a short sale I have with Indy Mac/One West. My sale has been in contract since December 30, 2009, with a sales price of $460,000.00. The short sale package was submitted to Indy Mac on 1/15/10 and the lender confirmed receipt of my package and stated they ordered the BPO. On 2/09/10 the BPO was received and they were reviewing the comps. On 2/16/10 the file was assigned to a negotiator with Service Link. The foreclosure date was set for 3/2/10, which they have postponed to 4/7/2010.
On 3/12/10 (after sending a urgent email everyday asking for a status) I received a decision from the bank that they wanted a purchase price of 525k and we had one week to respond. This particular property is located in a gated community which has had no sales in the last year of over 500k. I knew that this value was too high and even if the buyer accepted it, the property would not appraise.
I emailed a package consisting of recent sales in the subdivision, active listings on the market and detailed information and pictures of the subject property (all of which I also had in my short sale package). I asked the negotiator to please dispute the value that it was incorrect. Again I kept sending urgent emails to the negotiator which he would not respond to. On the 6th day after their response...I fired off emails to every corporate officer I could find on the internet for IndyMac, also because I used to work for Fidelity Title...who owns Service Link, I sent emails to people in management that I personally know.
Well...it worked, the next morning the manager of the negotiator called me (first time I ever got a call and actually spoke to a person) asked that I email him the package that I sent the negotiator disputing the value. He called me back later the same day and said that I put together a very convincing package determining the value...and that he would send it for a re-evaluation. he then gave me his direct line phone number and said to call him by the end of the week. Two days later i received a call from an agent that was performing a rush BPO on the property. Thank goodness this agent called me....she was not from the area or even our County. She had no idea the property was in a gated community. I gave her the same package that I had given the lender. Basically doing her job, but was happy to do so....no out of town agent would know this area.
At the end of the week I received a new letter from the lender accepting the sales price of 467k....a difference of 58 THOUSAND DOLLARS!
We are now past this huge bump in the road and on the road to closing. The Trustee's Sale has been postponed indefinitely which is a good sign.
Don't be afraid to be a squeekie wheel when working on a short sale...sometimes that's what it takes!
Replies to This Discussion
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Permalink Reply by Kent Dills on
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Great job contesting the valuation Tammy!
Good added advice Kenny! This might be the second time I've heard of the ASO but the first time it sank in! ; -) -
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Permalink Reply by Karyl Moore on
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Great story - great work!
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Permalink Reply by Kris Adams on
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Tammy - I am so so glad you wrote about your situation! I am in this same exact situation with Indymac right now. I just got a counter to the highest and best offer we submitted, and their counter(and BPO) was $15k over market value. There is absolutely no way it will appraise for the BPO value. I am putting together a BPO challenge right now, just like you did. I'm obviously hoping for the same results you came up with. I am going to email it to the negotiator, however I am wondering if you would be willing to share the emails of the others that you sent it to??? We are on a very tight timeline here. Any info would be greatly appreciated.
Thanks,
Kris Adams
Keller Williams Realty
[email protected] -
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Permalink Reply by Van Bui on
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Service Link denied our file because they anticipated REO will net more than short sale due to property will increase in the future. They want 393K and our offer 375K at 100% BPO. We are 18K different. Buyer cannot even get a loan with the price higher than appraisal value. Does anyone have any idea what I should do to save this file. Thanks
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Permalink Reply by Tammy Davis on
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Van ~~ You need to put a very strong case for the value. First I put a note on the house that if someone is performing the BPO to contact me immediately as I have information that is helpful...thank goodness she did. The agent performing the BPO was not from our area..not even in the same County! So I provided her with recent sales, current listings...etc. Basically doing her work...but hey it worked!
Then I put together the same package for the lender...complete with pictures of the house (showing the yard deteriorating) and any obvious repairs that needed to be made.
That is when they finally dropped it from 525 to 467k...
And we are FINALLY closing escrow this week! It was alot of work...but I have some very happy clients and that is the most important thing!
Van Bui said:Service Link denied our file because they anticipated REO will net more than short sale due to property will increase in the future. They want 393K and our offer 375K at 100% BPO. We are 18K different. Buyer cannot even get a loan with the price higher than appraisal value. Does anyone have any idea what I should do to save this file. Thanks -
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Tammy - Any chance you can help with my request above???
Tammy Davis said:Van ~~ You need to put a very strong case for the value. First I put a note on the house that if someone is performing the BPO to contact me immediately as I have information that is helpful...thank goodness she did. The agent performing the BPO was not from our area..not even in the same County! So I provided her with recent sales, current listings...etc. Basically doing her work...but hey it worked!
Then I put together the same package for the lender...complete with pictures of the house (showing the yard deteriorating) and any obvious repairs that needed to be made.
That is when they finally dropped it from 525 to 467k...
And we are FINALLY closing escrow this week! It was alot of work...but I have some very happy clients and that is the most important thing!
Van Bui said:Service Link denied our file because they anticipated REO will net more than short sale due to property will increase in the future. They want 393K and our offer 375K at 100% BPO. We are 18K different. Buyer cannot even get a loan with the price higher than appraisal value. Does anyone have any idea what I should do to save this file. Thanks -
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Hi Kris...Sure would be happy to send information. First, Service Link is owned by Fidelity Title...so if your escrow is with Chicago Title or Fidelity Title..ask your escrow officer to get involved. My escrow officer actually had not only her county manager send them an email, but also the regional manager...they responded immediately to them!
When I put together the valuation package with pictures and comps, comps and more comps...I emailed them to the negotiator (mine was James Lewis) and the supervisors in his department: Cooper, Erin" , "Burchard, Patrick"
I definitely had to be a squeekie wheel and I am sure they will be very happy to be rid of me. But I got what the seller and buyer needed, and they are happy which is most important to me ~~
Kris Adams said:Tammy - I am so so glad you wrote about your situation! I am in this same exact situation with Indymac right now. I just got a counter to the highest and best offer we submitted, and their counter(and BPO) was $15k over market value. There is absolutely no way it will appraise for the BPO value. I am putting together a BPO challenge right now, just like you did. I'm obviously hoping for the same results you came up with. I am going to email it to the negotiator, however I am wondering if you would be willing to share the emails of the others that you sent it to??? We are on a very tight timeline here. Any info would be greatly appreciated.
Thanks,
Kris Adams
Keller Williams Realty
[email protected] -
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Tammy, Thank you for your response. In my case, my offer is at 100% of their BPO value. This is their response : "value dispute has been denied due to the fact that per the loss models run on this property...the property value will increase when it goes to REO thus the higher expected net. We are within 1.5% of the expected value with this offer but the net will have to be significantly higher in order for this to be approved " The negotiator told me they run REO model and their expect REO value will be higher than current BPO; therefore, they cannot approve the file. I spoke to One West Bank- VP of Short sale Department. She could not help either. She said short sale will be harder to approve in CA because lenders anticipate the value will be increase in the future. This is too new to me. How can you fight with their REO model ?
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I am in california also and have never heard of this. I would suggest running a trend report (which I am able to do on our MLS site) showing current market trends for the last couple of years..maybe this would prove to them that the time spent waiting, the property deteriorating, and possible repairs may not result in a higher net like they anticipate. That their best bet would be to accept the offer, not bet on the future and close the deal.
Good luck on this one...it seems so frustrating!
Van Bui said:Tammy, Thank you for your response. In my case, my offer is at 100% of their BPO value. This is their response : "value dispute has been denied due to the fact that per the loss models run on this property...the property value will increase when it goes to REO thus the higher expected net. We are within 1.5% of the expected value with this offer but the net will have to be significantly higher in order for this to be approved " The negotiator told me they run REO model and their expect REO value will be higher than current BPO; therefore, they cannot approve the file. I spoke to One West Bank- VP of Short sale Department. She could not help either. She said short sale will be harder to approve in CA because lenders anticipate the value will be increase in the future. This is too new to me. How can you fight with their REO model ? -
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Thank you Tammy for your inputs. Indymac give me the price they know I cannot sale. The buyer walked because they knew they could not get funding on approval price. I will try my best shot to see if I can fight for the seller. Don't we all love short sales?
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It's definitely a love hate relationship! Hang in there!!
Van Bui said:Thank you Tammy for your inputs. Indymac give me the price they know I cannot sale. The buyer walked because they knew they cannot get funding on approval price. I will try my best shot to see if I can fight for the seller. Don't we all love short sales? -
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