Replies to This Discussion

Permalink Reply by Steele V. Propp on April 28, 2010 at 1:49am

First, the BPOs/appraisals are a good sign. 1-2 week reply? Hopefully but personally I have stopped questimating timeframes.

As to why two valuations, there must have been something about the first valuation that raised a question. When that happens they will do a second, sometimes even a third. They want to make sure that the valuations make sense. Standard operating procedure and nothing to worry about.

You are almost there :) Good luck.

Permalink Reply by Alan Remigio on April 28, 2010 at 2:00am

BofA, as well as other lenders have info from prior attempts at short sales, etc. Since values are currently fluctuating your initial offer should have a valuation which was then compared to the most recent. If there is a difference, and there usually is if the first was a BPO and the second is an appraisal, another valuation is ordered to confirm to the lender and investor a price deemed reasonable from both. If there is a gap in value over and above their guidelines, a third may be ordered. The sellers agent is right in that it is the last step in valuations. It is not the last step in the process. Next step is negotiating the price. Make sure your agent has done his homework and has a current CMA to work with. Your agents valuations have to be as recent as possible, since BofA may be doing the same thing. Go over the values with your agent and see if the values are acceptable to you. You may have already made an offer, so don't be surprised if the CMA is lower than your offer. On the contrary, I wouldn't be surprised if your agent's CMA is built around your submitted offer. My whole point, however, is be prepared for a counteroffer with data to support yours. Just as important is the date of the approval letter for the 2nd. Plan on an extension now if that date is creeping up, otherwise you will be going back and forth and wasting precious time. When everything is agreeable, push to close. Good luck!