A FSBO Short Sale, I Thought I Had Seen it All!
Homeowners have a resentment towards using an agent to sell their home because they believe that we do not do enough work to justify the commissions we earn. When things get tough, however or their attempts to sell themselves get difficult, then we are sought out.
The phone call started out normal:
Can I get a BPO on my home?
You mean a Comparative Market Analysis don't you?
No, the bank told me to get a BPO from a local agent. I then asked him to please explain.
The voice on the phone explained that they were trying to get the bank to accept a short sale offer on his home, and when the bank had gotten the appraisal back, it was $25,000 higher than the offered value and the bank would not accept the offer. The seller was then told that he should fix the noted lead issues on the home and then try to get another offer as the home would then be worth much more.
This was all very strange and made little sense, not just the part about the bank working directly with a homeowner, but no lawyer, none of the typical documentation that we normally use to get a short sale transaction completed, but also that the bank would have a direct dealing and be so close on dollars with no additional costs involved such as commissions, legal fees, etc, and still expect the home owner who is underwater and delinquent on their loan to do repairs.
Before I met with him, I did some research on the home and reviewed the comparables, and the homeowner was more in line with the value than the appraiser. I did not do a BPO, and also explained to him that even if I were to do one, I would have to submit it with the disclaimer that it was not intended to be used in place of an appraisal by a licensed professional.
I will be interested in watching how this home owner progresses with his process and hopefully he will be able to avoid foreclosure. They are certainly giving it their complete effort as short sales are seldom easy and more often than not require an experienced short sale real estate agent and lawyer to get through the banks systems.
A FSBO Short Sale, I Thought I Had Seen it All!
Comments(36)