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My first and last BPO

I don't know if this blog will offer anything tangible and it may just turn into a rant. I accepted a BPO on a home in the most rural county in North Carolina. The home was in bad condition and located in the middle of nowhere. All of this is fine with me as I grew up just one County over.

First of all only 19 homes have sold in this County according to our MLS since 2004. ClearCapital keeps sending the BPO back to me due to comp sizes. They want the square footage to be between 1200-1800 square feet, the comps to go back no further than a year, and for the distance from the subject property to be no greater than 30 miles. I give up on trying to explain to ClearCapital that I will have to go back to 2005 and 2006 in order to meet the square footage requirements. I know the value of the subject property in today's market as I have listed and sold property in this County.

Any advice from the experienced BPO agents on ActiverRain would be welcomed.

Posted by Jake Forbes on 10/16/2008 03:35 PM

Comments (18)

Post is included in group: Active Rain Newbies
Post is included in group: Foreclosures & Short Sales
Post is included in group: Foreclosure Talk
Post is included in group: REO
Post is included in group: Short Sales and Forclosures ONLY

18 Comments on My first and last BPO

OCT

2008

I work with Clear Capital all the time - I find them to be one of the better BPO companies. Have you tried speaking with them over the phone? Sometimes they email me to change my comps and if it just can't be done - I will call and explain - I find I get further with that approach. Hope it helps.

You say the home is in bad condition, is the value more in the land than the house? If so, I would explain that and use provide comps that are close in lot size and value. It seems like a lot of work for very little money when you have to spend so much time on things like this. I would also recommend speaking to them on the phone, because sometimes they will tell you what you need to do or say to get it through. Good luck.

Thanks Matthew and Bonita! I will give them a call as I think that's the only way I'm going to be able to explain the situation.

Jake, you just reminded me why I gave up BPOs some years ago.

Call them - I have had the same problem with them when they required REO comps in an area where there weren't any in a 20 mile radius. Call them and explain it and you will be fine.

Tina in Virginia

Email or call them and explain. I've had the same situation and ususally when you tell them the situation they understand. Remind them you are the expert!

Thanks for the post Jake.

Due to the obvious rural area you are dealing with & limited comps they should just do a full out appraisal & move on or take what you give them...I think in most situations they will just upgrade to an appraisal.

OCT

2008

Thanks to everyone! After talking to Clear Captial last night on the phone I think the situation has been resolved. An FYI that explaining everything by email did not work, but I think the phone call resolved everything.

I have had similar problems with other BPO companies in the past. It seems that if you explain this problem to them and note the situation in the BPO, they normally let it go through.

OCT

2008

Melissa, I agree. Most companies are reasonable and if I explain to them on the report, there's no problem.

OCT

2008

Sounds like a lot of worry, doing BPO's. A headache I probably don't want...

OCT

2008

Jake,

CC is unique in that they prefer you to call versus email with a problem. Most companies provide an email address, but I have found that calling, even if you have to work your way through a menu, then a live person, will generally do the trick.

We've also found that doing a little research before making the trip will let you know in advance if there is a unique situation.

We had one a week or so ago that turned out to be a 7000 sf bed and breakfast. We just called the company and let them know that a $50 drive by just wouldn't work on this property. Saved us a trip.

Normally, in a rapidly declining market, they'd rather you extend your search vs. going back farther in time. If the market is pretty stable, then they'll allow you to go farther back instead of extending the search area. Whatever you decide to do, don't give up on Clear Capital. I've been working with them for almost a year and I think that they're great!

Update! After the help from this board and after a phone conversation everything with my BPO turned out fine.

What's unbelievable is that I got a phone call yesterday from Clear Capital concerning this blog! I explained that I was satisfied how things turned out and I thanked them very much for the phone call. I went on to explain my situation in regards to the rural area in which the subject property was located and the Clear Capital rep was attentive to my situation. I was wowed by the call and their customer service!

I just thought Clear Captial deserved this update on ActiveRain and I hope it may help others.

OCT

2008

Active Rain is so great. We can find answers. Good luck Jake.BPO's are a niche in themselves and they take a lot of extra work when we live in a rural area. I am in a rural area in Maine and it can be daunting to find three solds similar to the property. I find I have to expand the area to find better comps and then I adjust to the locations.

OCT

2008

I know my market well and when the BPO companies call for a BPO on a home I know will be hard to find comps for I ask for more money and explain why. Then when they call me back or reject the BPO due to square footage or other issues at least I will receive more monies for the extra work of explaining that I have chosen the best comps for the subject property. I hope this helps. Aloha Julie

Has anybody heard of Teresa Gordon doing a 3 day REO seminar and charging tons of money? If you do, is she legit?

JUN

Vanessa, thank you for your comments on "extending the search area vs the extension on the time". That's very good in the theoratical thinking. Great post.

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