| You have connected with the foreclosing lender and | | | | for. ( this is a common place, If you can't sell a house |
| they have asked their conditions be met. You send in | | | | for 250k how are you going to sell it at $295k as |
| all the paperwork, statements, tax returns etc etc You | | | | suggested by the BPO...) |
| now have to wait for them to go through their | | | | 5) Lenders are usually pretty solid of their value as |
| process, banks are overwhelmed right now so the | | | | they have sent a "so-called" expert out to value the |
| normal 7-10 business days is now 30 -60 days. But | | | | property. |
| even after waiting all the extra time the lender says " | | | | So why would a BPO over price a property? 1) lack |
| the offer is not enough and the short sale is declined" If | | | | of experience 2) They receive little compensation to |
| you place another offer you have a long process to | | | | give a value...usually between $25 -$50.... who how |
| wait again. So why after all the wait do banks say no? | | | | accurate must that report be??? 3) Once investigated |
| The challenge is back to one of the reasons we are in | | | | you will find that most BPO agents have a web site |
| the housing doom in the first place...Over estimating the | | | | selling REO properties. ( REO is Real Estate Owned |
| value of the property...you would have thought they | | | | by the bank after foreclosure.) So what happens |
| had learned their lesson with the decline in the | | | | when the property goes to foreclosure sale because |
| market...but obviously not. When the homeowner | | | | no one will by this over priced house? It goes back to |
| defaults, the lender sends out a BPO (Brokers Price | | | | the bank in their REO property dept. And guess who |
| Opinion) that is usually a real estate agent who goes | | | | gets the honor of listing the property for sale? ....You |
| out and tells the lender what the house is worth. Here | | | | guessed it the agent that gave them the over inflated |
| are the challenges: | | | | value! what a business opportunity that is. The thing is, |
| 1) Most BPOs are carried out by agent who are not | | | | that agent will list the house and in 3-6 months when it |
| really active in the selling market, if they were active | | | | doesn't sell they reduce the price to the "Actual Value" |
| they would not have time to do BPO's | | | | and guess what...along comes a buyer and they collect |
| 2) Some do not even work in the area they have | | | | their commissions. Now I am not saying every agent |
| been sent to to give their value... | | | | does this, but I have many experiences over the years |
| 3) These BPO's can't possibly give an accurate value | | | | with this being applied. It is time the lenders woke up |
| if they are not active in the local market place. | | | | from a housing nightmare and listening to people in the |
| 4) Pricing the property above what is currently listed | | | | know. |