I am currently in the middle of  'Round 1' of a BPO Valuation dispute with the negotiators at GMAC, via Equator. The situation is 'dicey & spicey' because the property is tenant occupied and the agreement with the owners included reduced rent in exchange for improving the property.  When purchased by the owners, the Subject hd been sitting vacant for 3 years and had been stripped.  The tenants didn't care because one of them is an Interior Designer and so an agreement was made that the tenants would handle the build-back.  In the meantime, enter the typical foreclosure scenario in addition to major water intrusion, mold, subterranean termites, drywood termites and more....The tenants made an offer on the proeprty and it was accepted by the seller.  It was sent to the lender, who ordered the usual interior BPO. Based upon the BPO, GMAC countered at the current "as-is, 'GOOD' condition" neighborhood values.  Not aceptable because this house needs approximately $165,000 worth of repairs (we have all of the bids).  I re-did my BPO and included the bids and disputed the Lender's counter.  Last week we received confirmation that everything was sent to the reviewer.  My concerns are that the purchase price the buyer tenants submitted plus the cost of repairs necessary to bring the Subject up from it's current poor condition to 'good' condition will push the total FHA203 renovation loan above the final appraised value.  (I am not going to disclose the buyer's offer price, but it is very good and realistic!)  When you add the Lender's counter of $217,000 to the $165,000 necessary repair bids, the final numbers will not allow the property to appraise!)  The dicy and spicey part of this entire situation is that the tenants have made all of the current improvements, have kept every single receipt, and will be removing them all should the Subject proceed to foreclosure - so the asset will be totally stripped again.  Is anybody else having a problem figuring out where some of these BPO agents come from, because they definitely do not reflect the current conditions of some of these properties in their BPO opinions of value by leaving the necessary repairs and other contributing factors out of their report; WHICH, makes our job more difficult, and totally stresses out the Sellers and the Buyers.  Hopefully, by the end of the week I will have some kind of news to share!