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Bitten by a Bad BPO

Real Estate Agent with Berkshire Hathaway HomeServices - Homesale Realty RS292802

November 15, 2012 04:44 AM

I was Bitten by a Bad BPO!

I'm sure this has happened to many of you before and if you're working Short Sales it could happen again.

Let me take you all back to August of this year.

Short Sale on this home was approved and we were waiting on the buyers financing to come through. Title Work was completed. Appraisal was FINALLY in! What? The lender needs another week! The BPO for the short sale was set to expire. We have to start the entire process all over again. As frustrating as that sounds, I wasn't too upset. We already had all of the documents just need to get fresh dates. We already had a short sale approval and an appraisal. The buyers are in this for the long haul. All was good!

I meet up with the BPO agent at the property. Unfortunately, they didn't have access to a Supra Lockbox key. They were coming from almost an hour away. We talked and I explained that the property was under contract, and that we had prior short sale approval for a certain amount. I was a little concerned with that agent traveling from another city, different market, and not having an eKey (which I seen as potentially not having access to our MLS).

Cut to several weeks later when the property was assigned to a negotiator who sent me an email stating that he was denying the short sale and told me the investors anticipated Net Proceeds were much higher than the agreement of sale currently in hand. I quickly did the math to see that there was a $25,000 difference between previous short sale approval and this BPO.
I wasn't initially concerned. Regardless of the BPO value we had an FHA Appraisal (good for 6 months) in an area where 85% or more homes sold to Owner Occupants are selling via FHA. I'm thinking we are in a Golden situation. Not so fast... The investor is not just going to look at the appraisal but we have to go through an appeals process which "could take some time" in the words of the negotiator.

I'm confident that we will get it all worked out. We have the ammunition (appraisal, home inspection, list of lender required repairs, and an estimate to repair these items) to prove the true value of this home.

What are some issues that you've faced in doing short sales? How did you overcome them?

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Darius Ramsey

Prudential Homesale Services Group

717-884-9052

dramsey@HomesInCentralPA.com

Free List of Short Sales

Harrisburg Homes for Sale

Search All Homes For Sale

Carlisle Homes for Sale

Camp Hill Homes for Sale

Free List of Foreclosures

Short Sale Homes For Sale

Need a Mortgage Pre-Qualification?

Avoid Foreclosure

Darius Ramsey

Prudential Homesale Services Group

717-884-9052

dramsey@HomesInCentralPA.com

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Bill Reddington

Re/max By The Sea - Destin, FL

Destin Florida Real Estate

That is what the Banks are doing here lately. Hire an agent that is based an hour or more from the property. t is a pain. Hopefully it is not VA cause then it is a real issue.

Nov 15, 2012 06:06 AM

Patrick White

Home Driven Realty, Inc - Baldwin, NY

Driven to bring New Yorkers home

Good Evening Darius

Thanks for the post and information. Have a great day

Nov 15, 2012 08:12 AM

Bitten by a Bad BPO

I was Bitten by a Bad BPO!

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Darius Ramsey

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I was Bitten by a Bad BPO!

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