There are days where I think I may be losing my mind while working South Florida Short Sales because I can’t make any sense of these investor's actions. Here are the latest shenanigans:
We started a short sale, and with the Seller’s permission, we waited until the Lender’s BPO came back before we listed. The value came back, the lender servicing the loan told us that the value was $199K, and so we listed and went under contract for $199K.
The file moved forward to a negotiator, and a few days later, he asked us for 3 closed comps and 3 active comps. Naturally we asked what they needed the comps for, and he told us that there was a 2nd BPO done by the investor (one of the two GSEs) without our knowledge.
Right away I’m confused because there is no reason for a 2nd BPO when the last one was done less than a month ago. I am also irate that a BPO agent went into my Seller’s home pretending they were there for a showing, basically doing a BPO without our permission (anyone who follows my blogs knows that we show up to every BPO appointment to make sure a licensed BPO agent actually does the value).
Then through some more back and forth with the negotiator, we find out that the 2nd BPO came back at $300K!!! I almost fell over! HOW is it that a property in Miami appreciated $101K in one month?! Last time I checked, we’re still in the middle of a distressed properties storm and it’s not looking like it’ll get much better any time soon.
Thankfully (seriously, thanking my lucky stars), this negotiator is by far one of the most reasonable, proactive, knowledgeable negotiators I’ve ever come across and he’s 100% on our side. He is fighting for us as hard as he can and is pushing for the 1st value of $199K to be used. If we had anyone else working on this file, we’d literally have to wait out until the $300K BPO expired and then request that a new one is ordered (3-4 months later).
If the investor doesn’t take the negotiator’s recommendation, we’ll have an uphill battle on our hands, but I’m hoping for the best and I’m prepared to fight. Nevertheless, it makes me wonder….what are these people thinking???
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Patty Da Silva, CDPE©, RESS®, AHWD®, e-PRO®, GREEN, CFS, TRC, RSPS
BROKER - REALTOR® Serving South Florida ::: 954. 667. SALE (7253) ::: Green Realty Properties®
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12 Comments on One Reason Why Short Sales Get a Bad Rap
Patty
It's a jungle out there with the distress properties.
Good luck and success.
Lou Ludwig
Patty, something is very wrong with that second BPO. It's a good thing you have a good negotiator on this one. Good luck to you.
Lou, it really is!! I won't give up and I am sure it will all be fixed in the end but much time will be spend righting the wrong.
Jim, the BPO is so bad this is the email the negotiator sent me:
The value shows as an interior BPO but either the person doing it has NO CLUE whatsoever or they are SUPER lazy and didn’t really do anything and just collected a paycheck for less than mediocre work. Its really disappointing but we have channels that allow us the opportunity to right some of these wrongs when we catch them so I’ll use every one of them if I have to.
Patty: I sure hope they hire a professional home inspector so they will know exactly what they are buying.
Have a great day tomorrow.
C&C
After reading that email Patty, it does look like you have one of the better negotiators out there. Hopefully whoever did that BPO doesn't get any more work doing such shoddy BPOs.
Now Patty...let's not use logic and lender in the same sentence or we'll all be crazy!
Howdy and evening Patty
Patty my friend, I don't know a lot about the ins and outs of Short Sales. From this here mighty fine blog post of yours, I sure would say that the Investor and the person that done the second BPO might know even less than I do.
Thank you mighty kindly for helping me to learn about the workings of Short Sales with your mighty fine blog posts on them.
Have a good one
Dale in New Hampshire
Patty,
Love the house of nonsense picture, I think that there are many more inhabitants who should be living there. All the best to the short sale Diva. A
Who wants a drink after reading that? They're all nuts and make no sense whatsoever. This negotiator is our saviour on this one.
Patty, Those people are not thinking. They don't have to think ... they are paid robots ...don't ya know? The second BPO sounds like BPO BS to me. I would not be surprised if the BPO they are referencing is for another property!
And the drama continues. Reminds me of the story about too many cooks...
Some things never change.....love the graphic Patty!