My wife and I have been trying to purchase a short sale property in Squaw Valley, CA for the past 10 months.  The property was put on the market for 300k, but over 369 days, the price was reduced to 200k.  Our 200k offer was finally approved after months of negotiating with Ocwen.  (They initially wanted 235k.  However, water is a major issue out here, and we showed them the well was only pumping less than half a gallon a minute, so we'll have to dig a deeper well.  Also, we're getting a HAFA loan.)  

Anyways, we finally signed closing documents last week (Tuesday), one day after we were expected to.  Our agent requested an extension over a week prior.  Friday of last week, our agent was told that Ocwen could not grant the extension because the BPO they had on file would expire two days later (Sunday), so they needed a new BPO before going forward.  (Even though the one they had on file had not expired.)  They have already done two BPOs in the ten months we've been working with them, and they have an appraisal, which puts the value of the property at $215k.  But I've read so many horror stories on here where the bank comes back with an insanely high estimate.  

So my question is this:  What incentive does Ocwen have to deny us the purchase?  Also, if the BPO comes back higher than the appraisal and the earlier two BPOs, can Ocwen simply retract the whole deal, and/or charge us more money?  And finally, what options do we have to fight it if the worse happens?  

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The banks get reimbursed whether it is foreclosed,  short sale, or Deed in lieu..   However in order to be reimbursed they must adhere to guidelines as set forth by HUD Fannie or Freddie   Typically they are the same...

So there is no incentive for them to deny.   However answering your next question?

if the BPO comes back higher than the appraisal and the earlier two BPOs, can Ocwen simply retract the whole deal, and/or charge us more money?

Yes because values are going up it is likely the BPO could increase. Which also means they will most likely want more money for the home.   The investor (bank)...  will have a net figure and all the numbers could change.      Why are you asking for an extension?

Fight it?!  you could try a Variance if it is an FHA loan with the sellers....   You may try to escalate the situation with Fannie which will stall it even longer   They will have to order another BPO to verify values you are disputing...  

You should close on the day scheduled if that is possible...     Very important to stay on top of the process from both sides buyer and seller.   Experience on these is important and knowing how to get these done.  

Ocwen is not the fastest to deal with either.   Only other bank that is slower  US BANK

Close on or before the approval deadline.   otherwise docs expire and the it starts all over again.   I will also add this...  It is likely if the BPO is expiring...  so will the sellers docs.   All should be resubmitted  and if your agent doesnt see this or the negotiating team for the seller...   many times they are so caught up in the processes of many files.   You should alert them..   If you can close now do it!   

Might not be the news you want to hear but its the reality...   Everyone goes thru it...   Not good to ask for extensions after an approval is given.   Generally approvals are good for 60days.  However if docs are expiring...  so will the approval and it will be stated on the approval the time to close.

Good luck



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