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Short Sales: What is a BPO?
IL – If you have been reading about short sales, then you have probably heard the term "BPO" and wondered what it meant. BPO stands for Broker's Price Opinion. A Broker's Price Opinion is when a licensed real estate agent gives their opinion of the value of a property. That value is what the lenders use to process the short sale. Most short sale approvals or denials are based off of that opinion of value. The agent goes thru all the recent sales of properties similar to the property they are valuating. They want to find the 3 closest comparable sales. Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here. The more recent a sale is then the closer of a comparable it is considered to be. The same goes for properties that are close geographically (in the same neighborhood is preferred) and close in size and number of bedrooms or baths. Most agents are not appraisers. Because an appraiser's license is required to appraiser properties they give their opinion of the value. Now, I'm sure you are wondering, " Why do the lenders use these rather than an appraisal?" Here is why. Many people ... more

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