Chase - 'Not a penny less'

No doubt, it is a common situation.  The BPO comes in higher than the price you have your home listed for.  But normally, the bank is willing to negotiate a bit.

So... this is my 3rd deal with Chase in the past year and I am getting the feeling they don't negotiate off the BPO value.

I have had this home listed for about 4 months with few showings and NO interest.  The original BPO came in at $150k.  I am listed at $139,900.  I challenged the BPO and remitted a dispute CMA with all the comps.  Two months later, they came back and said their value still holds of $150k.

I asked if they could give me a rule of thumb regarding BPO-to-offer value and my negotiator said that they want the BPO price.  Not a penny less.  This could be a negotiation tactic, but I don't even have an offer yet.  I asked the negotiator how I am to get an offer for a higher price than what the home won't even currently sell for.  She referred me to the other 'available options for the homeowner' (eg: DiL).

From your experience, are you seeing Chase stick very closely to the BPO value?  I know I can't get anywhere close to the BPO value.  I don't want to let this one go, but I also don't want to spend 4 more months if I am sure the offer will be declined.

Any thoughts?

BTW: This is a FNMA loan.

Views: 1398

▶ Reply to This

Replies to This Discussion

Permalink Reply by Minna Reid on July 30, 2012 at 6:45am

Yes Chase negotiates, but why did you have the BPO done so early? This is generally what happens when you have BPOs happen too early - they come in too high.

You may as well just keep reducing and once you have a buyer you can dispute the value or perhaps 3 months will pass, and Chase will need to do a new BPO anyway

Permalink Reply by Jeff Payne on July 30, 2012 at 8:29am

I closed one last month and we sold for about 90% of BPO value.

Permalink Reply by Barry Levy CDPE on August 5, 2012 at 1:32am

I had a Chase short sale and they were holding to an unrealistic BPO.  I lowered price until there was interest.  We got four offers.  Then I challenged the BPO.  I submitted the highest offer and they reconsidered.

Of course, since this is a FNMA loan, your problem may be FNMA rather than Chase.

Permalink Reply by Robert A. Carrino on August 5, 2012 at 1:33am
I agree with Jeff. I have done 6 with CHASE in the last 2 months and 90% of FMV/BPO has been par for the course. Not had one hold fast to BPO value. I did have my first counter on a mortgage balance of 560 come in at 950K......happened on Friday. Still shaking my head and gathering my thoughts going in to Monday : ))
Permalink Reply by Donna McClelland on August 5, 2012 at 9:30am

Maybe they were dyslexic that day and meant 590, not 950.

Permalink Reply by Diane McKinney on August 5, 2012 at 3:24am

Drew,

I had the same problem with Chase and FNMA.  I had a house worth $72,000 and had 2 BPO's come in at $30,000 apart!

One at $75,000 and one at $105,000.  I disputed the BPO at $105,000 and I quickly got nowhere.  They were not budging from the $105,000.  All day long, I could not sell this house at $105,000.  I had 5 showings in 6 months with the home listed at $80,000.  I withdrew the listing and have referred the seller back to Chase for other options.  I am helping the seller prove to Chase that the short sale was a failure and why with backed up MLS stats, listing history, Comps, etc.  Sellers are 1/2 way through the process of DIL.

Hope this bit of information helps you.

 

Permalink Reply by Joseph Alfe on August 5, 2012 at 4:03am

it is NOT Chase, but rather whomever their investor is.  I have done less than 90% of BPO many times this year, as long as Freddie was not the investor.  The only thing that can cure a vFreddie value is time.  Wait for the 90 day bpo life to expire then ask for another one, and meet the bpo agent at the property and sell your deal.

Permalink Reply by Juan Garcia on August 5, 2012 at 4:27am
I had one closed 3 weeks go...20% over BPO...35k to client + 3k HAFA. They DO negotiate price after 21 days...escalate!
Permalink Reply by Pattilynn Guilford on August 5, 2012 at 4:46am

Escalate.

Permalink Reply by Juan Garcia on August 5, 2012 at 6:10am
By the way...even if you get a full price offer, if it's financed with FHA...the loan will not be for a penny over its appraised value and FHA appraisals follow the property for 60 days. So, if the buyer's loan appraisal comes lower, forward a copy to the bank...an appraisal outwheights a BPO.
Permalink Reply by Donna McClelland on August 5, 2012 at 9:33am

Juan is right.  Showing the lender the appraisal does the trick.  However, most buyer's lenders won't do the appraisal until they see an approval letter, but it might be worth the risk to the buyer to just go ahead and pay for the appraisal to save thousands on their purchase and/or not lose the purchase in the first place.

Permalink Reply by Woody Edwards on August 5, 2012 at 10:15am

I had a similar situation with a high BPO done by an inexperienced agent. I asked to contest the BPO, they said no, so I asked how long the BPO was good for, and they said 4 months.  I laughed because an appraisal is only good for 3 months!

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

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