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BPO Disputes With Friends At Freddie Mac

By
Real Estate Agent with Group 4610 Network

Good morning! We would like to talk about an issue that we have been running into with Freddie Mac. Last week on two different files, both with Wells Fargo as the servicer. Both files had a BPO agent that was apparently incompetent. We could infer that the agent might have been intoxicated based on the BPO that was returned.

One of the files has more than twenty active listings in the subdivision. Nothing has sold within the last 120 days and our listing is the only one under contract. So, we put the paperwork together to dispute the BPO and give it to Wells Fargo. Wells sends it to Freddie Mac and they decide that the home is worth more.

After running new comps, we found a new comp, which was an REO listing. It was priced within a few thousand dollars of our offer. Guess who owned that REO listing. That's right, Freddie Mac has an REO property with the same floor plan as ours in the same subdivision as ours. They have listed it at about the same price as our current offer. However, with our listing they are asking for about $12,000 more. Their short sale department is looking at sold comps and their REO department is looking at actives to find out how to sell the home.

When you are using REO comps to dispute a BPO value, check to see who owns the REO's. There is nothing better than seeing the investor turn down your BPO dispute and then finding an REO property that they own to show them.

Do you have questions? Read the Short sale FAQs.

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Comments (2)

Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor
It is tough dealing with people whos job will go away as soon as the REOs are gone.
Oct 27, 2010 03:48 AM
Anonymous
Kevin

Great Tip.  Working on a Fannie Mae with Chase right now with a BPO value of $507,000 that was done by Chase and a full appraisal by the 2nd of $396,000.  The highest sale in this neighborhood which is riddled with foreclosure has been $450,000 with the last 18 months.

Jan 08, 2011 09:29 AM
#2