I am currently working on 3 short sales with Bank of America. Over the past 2 years I have been involved with many short sales and finally the banks (at least Bank of America) is hiring appraisers rather than ordering B.P.O's. While I think this is a good idea, I am also seeing it kill a lot of short sale deals.
Let's face it... even very recently the B.P.O's that were being done were ... well let's say ... less than accurate in many cases. As the saying goes, you get what you pay for. Here in Michigan (where it is illegal for anyone other than a broker to charge for a B.P.O.) we were seeing agents out doing B.P.O's.
It had always amazed me that a lender would require an appraisal for a mortgage but allow a B.P.O. for a short sale. In the long run I think it is a great thing but short term it is dragging out the short sale process. What used to take only 4-6 weeks now takes 3-4 months to complete. I have to assume it is the same all over the country.
It will be interesting to see how things shake out here in the near future. I am sure we will be seeing a lot more changes in the months to come.
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