Today, we’re going to explain Step 2: Influence the BPO. A BPO is a bank’s version of an appraisal. They use that property valuation to make a decision to approve or deny a short sale offer.
Many BPOs are inaccurate. As a result, many short sales are unnecessarily rejected. The banks lose even more money when they property sells later on.
The problem is that the people doing the BPOs are rushing thru them. They are visiting 100 or more homes per month and preparing an in depth property evaluation on each one.
That isn’t always enough time to properly evaluate each property. As a result, many BPOs are inaccurate. An inaccurate BPO often leads to a failed short sale. Let me explain why.
If a BPO says that a home is worth $250,000, but the actual value is only $220,000, then the short sale will probably be turned down. You the homeowner risks losing your home to foreclosure.
In one example, the people doing BPOs on a short sale consistently stated that the property was worth $325,000 to $375,000.
Over the course of a year of being on the market, the most a buyer offered to pay was $275,000. But, the bank wouldn’t accept their offer because they thought the house was being sold for less than it was worth.
The market continued to decline. The realtor continued to market the property. However, now buyers were only offering $230,000. The short sale bank finally accepted that offer.
Inaccurate BPOs cost that lender $45,000. In addition, they put a seller at risk of losing their home to foreclosure. This is why your agent must influence the BPO. Here is how they do that.
Your agent does not allow the person doing the BPO into the house without their permission. They meet the person at the house and tell them why the home is selling for the price it is selling for.
They explain the market conditions and explain what they feel the home is worth. The give that person their own opinion of the value of the home.
Many times that person will use the information they have gathered for them and turn it into the bank. That gives you a much better chance of a successful short sale.
Thinking about a short sale? I can help you short sale your property and get back on your feet. Send me an e-mail at email@example.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail. If you prefer, then you can call me at (201) 825-6600 x343 or on my cell at (201) 674-3114. If you prefer, just fill out the form by clicking the words, Contact Me below:
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Thinking about a loan modification? Our Bergen County Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, James Lockard.
James is a Real Estate Agent at RE/MAX Properties.
Phone: (201) 825-6600 x 343 Cell: (201) 674-3114. firstname.lastname@example.org
James Lockard specializes in loan modification assistance and short sales in Bergen County New Jersey. Bergen County Loan Modification Help, Bergen County short sales, Bergen County Short Sale Realtor, Short Sale Realtor, Bergen County NJ Short Sales, Bergen County Realtor
Copyright 2011 SFI Marketing Institute, LLC. All Rights Reserved.
James Lockard, RE/MAX Properties, and the Stop Foreclosure Institute are not associated or affiliated in any way, shape, or form with the government. Our services have not been reviewed, endorsed, or approved by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
If you stop paying your mortgage, then you could lose your home and damage your credit. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Lockard’s personal views and do not reflect the views of RE/MAX Properties.
This information on Step Two To Get A Bergen County Short Sale Approved In 90 Days Or Less is provided as a courtesy to our viewers to help them make informed decisions.