Investor still wants $24,000 more than appraised price? With buyer's appraisal?
Dear Superstars, I am out of ideas now so any help much appreciated. I've had a short sale listing from May 2012. 3 buyers. Indymac who transitioned to using ServiceLink in November and DeutscheBank is investor. HELOC on it who has agreed to take HAFA payout.
3rd buyer offer comes in...BPO apparently expired on 2/1....BPO agent had been out there for new BPO....ServiceLink confirmed new value was uploaded and ServiceLink negotiator gives a counter price of $265,000 2/21. All parties agree- get everything over next day.
Day after the counter expired on our end- we get a letter written by ServiceLink on IndyMac letterhead asking for $284,000 now.
Speak with ServiceLink. They say it is all the investor. Unclear whether there really was a BPO change in price, as they countered at $265,000 once they said BPO was in and 3 weeks after agent was out there. Negotiator had left before current offer, then replacement negotiator left again after a few weeks for leave- so it changed hands.
A few days later buyer's appraisal comes in (as it had been ordered when buyer thought we had close to a done deal). It comes in at $260,000.
Buyer agrees to keep it at $265,000 to pay difference to keep this moving.
Only 3 neighborhood comps- all very strong. Buyer's agent is in shock too. ServiceLink said they would send appraisal along with dispute to investor. I also faxed it to IndyMac and DeutscheBank.
ServiceLink comes back today and says nope- $284,000 is FMV and it is firm and HAFA short sale file will expire tomorrow if it is not accepted by then. How can a bad agent BPO be stronger for FMV than the lender's appraisal and agent comps?? The agent who went out there is not an appraiser.
I don't know what else to do at this point. It is very clear what the value is. I can not remarket it because it will never appraise at that. I can not shake they just want to take it by foreclosure or try for deed-in-lieu (not sure the seller is even willing to spend any more time for that at this point).
We've had 3 offers in a year $245,000-$265,000. An appraisal of $260,000. How do you get to $284,000???
I don't know who to escalate to at this point- if there would even be any hope. Advice appreciated. Thanks.
Replies to This Discussion
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Permalink Reply by Tara Samney on
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Update - I do a MLS check and the agent who did the BPO (whose key accessed the property and who texted and called me) and only sold 3 properties since June 2011, ranging from $16,000 - $169,000. Nowhere near the value of this home. I checked to see if she had any listings...nope. I can only guess her broker gave her the BPO to do instead.
How can an inexperienced agent's BPO carry more weight than the lender's appraisal?
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IndyMac won't allow another value dispute since it has already been done (the appraisal ordered by the lender apparently is meaningless). They said the buyer could counter (even though he already is paying $5,000 in cash higher than appraised value).
If lenders don't want to do short sales- I wish they would just state so upfront. It would be also be niced if only experienced agents (or appraisers) were used on BPOs (or guessing in this case it was given to the broker and passed down to the agent).
Is it worth it for me to contact the investor again or is this officially a lost cause now? Thanks
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Permalink Reply by Simon Campbell on
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I used to be a real estate appraiser and I am SHOCKED that lenders are still using BPO's as tools to negotiate purchase agreements. I see the value in a BPO in order to set the listing price but you are absolutely correct - a BPO SHOULD NEVER outweigh an appraisal which was completed by a state licensed appraiser.
Honestly, I would hound these guys until you get something. I would provide IndyMac is a printout of the information on the "agent" that provided the BPO and also attach a copy of the appraiser's qualifications and ask if they are really ready to lose this and all future deals to an unqualified and unsubstantiated opinion. Go get them!
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Simon- I agree. I am pulling at straws now, so I printed off my lockbox access report showing the BPO agent who did it along with her sales history of only 3 sales in 2 years. Verified no appraisal license. I submitted a counter submitting some costs, hoping they will reconsider when they see who did the BPO . I get using BPOs for a baseline in setting a price- but once an aprpaisal comes in I don't understand how as appraisers are licensed and tested on this material- that doesn't hold more weight??
Thanks for your response- I was losing faith....hopefully they can reconsider and unstand the weight of the appraisal.
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Permalink Reply by TOP END Properties on
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What is the range of sale prices within 1 mile and within 20% sqft?
You need to do a BPO and submit it, then escalate with management or Freddie/Fannie/FHA if they are involved.
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I just realized I should update this. I ended up receiving approval from IndyMac for the max to give to Citi $8500. It was a non-GSE investor so no Freddie/Fannie involved. What I took from this was buyer's appraisals (ordered by the lender) and my BPO (with houses just a few feet away and nearly identical in the past 6 months) are meaningless when it comes to what the investor wants to net. I've seen a change the past year with investors insisting FMV is higher than market value and throwing current appraisals (by licensed appraisers) out the window. I'm still in a bit of shock I finally beat it to death and thankful we got an agreement between the 2 lenders. In the end they still maintained the FMV was close to about 8% higher than the current appraisal.
The only thing I can think of is the high density of short sales and foreclosures. My understanding has always been if there is no other comp and they are in move-in condition then they are counted. I think the appraiser counted a foreclosure in move-in condition 4 doors down and the investor chose to pretend it doesn't exist. Only 3 comps within a mile- and that was one of them.
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