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One Reason Why Short Sales Get a Bad Rap

By
Real Estate Broker/Owner with Green Realty Properties® - 954-667-7253 BK3175566

There are days where I think I may be losing my mind while working South Florida Short Sales because I can’t make any sense of these investor's actions. Here are the latest shenanigans:

We started a short sale, and with the Seller’s permission, we waited until the Lender’s BPO came back before we listed. The value came back, the lender servicing the loan told us that the value was $199K, and so we listed and went under contract for $199K.

The file moved forward to a negotiator, and a few days later, he asked us for 3 closed comps and 3 active comps. Naturally we asked what they needed the comps for, and he told us that there was a 2nd BPO done by the investor (one of the two GSEs) without our knowledge.

Right away I’m confused because there is no reason for a 2nd BPO when the last one was done less than a month ago. I am also irate that a BPO agent went into my Seller’s home pretending they were there for a showing, basically doing a BPO without our permission (anyone who follows my blogs knows that we show up to every BPO appointment to make sure a licensed BPO agent actually does the value).

Then through some more back and forth with the negotiator, we find out that the 2nd BPO came back at $300K!!! I almost fell over! HOW is it that a property in Miami appreciated $101K in one month?! Last time I checked, we’re still in the middle of a distressed properties storm and it’s not looking like it’ll get much better any time soon.

Thankfully (seriously, thanking my lucky stars), this negotiator is by far one of the most reasonable, proactive, knowledgeable negotiators I’ve ever come across and he’s 100% on our side. He is fighting for us as hard as he can and is pushing for the 1st value of $199K to be used. If we had anyone else working on this file, we’d literally have to wait out until the $300K BPO expired and then request that a new one is ordered (3-4 months later).

If the investor doesn’t take the negotiator’s recommendation, we’ll have an uphill battle on our hands, but I’m hoping for the best and I’m prepared to fight. Nevertheless, it makes me wonder….what are these people thinking???

 

Posted by

If you or anyone you know need help Selling or Buying a Home in Broward & Miami-Dade Counties, please don't hesitate to call me at 954.667.7253

 

Help lots of people and have a great day!

Patty Da Silva, CDPE©, RESS®, AHWD®, e-PRO®, GREEN, CFS, TRC, RSPS

BROKER - REALTOR® Serving South Florida ::: 954. 667. SALE (7253) ::: Green Realty Properties®

Visit www.WeLoveSouthFlorida.com for SouthEast Florida's best properties.

 

 

Copyright © 2008 - 2015 By Patty Da Silva, CDPE©. All Rights Reserved.

Legal Stuff: This article (Contents) reflects the opinion of the author and it is not to be considered legal advice. The author is not an attorney or a CPA. If you are in need of legal or tax advice, it is recommended that you to contact a trusted professional advisor.

Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Patty

It's a jungle out there with the distress properties.

Good luck and success.

Lou Ludwig

Feb 22, 2012 07:56 AM
Jim Patton
Aspire Home Real Estate 209-404-0816 - Modesto, CA
Realtor - Stanislaus ,Merced, San Joaquin Counties

Patty, something is very wrong with that second BPO.   It's a good thing you have a good negotiator on this one.  Good luck to you.

Feb 22, 2012 08:20 AM
Broker Patty Da Silva Da Silva
Green Realty Properties® - 954-667-7253 - Cooper City, FL
Top Listing Broker

Lou, it really is!! I won't give up and I am sure it will all be fixed in the end but much time will be spend righting the wrong.

Jim, the BPO is so bad this is the email the negotiator sent me:

 

The value shows as an interior BPO but either the person doing it has NO CLUE whatsoever or they are SUPER lazy and didn’t really do anything and just collected a paycheck for less than mediocre work.  Its really disappointing but we have channels that allow us the opportunity to right some of these wrongs when we catch them so I’ll use every one of them if I have to. 

Feb 22, 2012 08:48 AM
Carl Winters
Canyon Lake, TX

Patty: I sure hope they hire a professional home inspector so they will know exactly what they are buying. 

Have a great day tomorrow.

C&C

Feb 22, 2012 08:58 AM
Jim Patton
Aspire Home Real Estate 209-404-0816 - Modesto, CA
Realtor - Stanislaus ,Merced, San Joaquin Counties

After reading that email Patty, it does look like you have one of the better negotiators out there.  Hopefully whoever did that BPO doesn't get any more work doing such shoddy BPOs.

Feb 22, 2012 09:46 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Now Patty...let's not use logic and lender in the same sentence or we'll all be crazy!

 

 

Feb 22, 2012 09:56 AM
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy and evening Patty

Patty my friend
, I don't know a lot about the ins and outs of Short Sales. From this here mighty fine blog post of yours, I sure would say that the Investor and the person that done the second BPO might know even less than I do.

Thank you mighty kindly for helping me to learn about the workings of Short Sales with your mighty fine blog posts on them.

Have a good one
Dale in New Hampshire

Feb 22, 2012 11:07 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Patty,

Love the house of nonsense picture, I think that there are many more inhabitants who should be living there.  All the best to the short sale Diva. A

Feb 22, 2012 11:55 PM
Marianna Athanasiadis
Green Realty Properties® - Davie, FL

Who wants a drink after reading that? They're all nuts and make no sense whatsoever. This negotiator is our saviour on this one.

Feb 23, 2012 02:19 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Patty,  Those people are not thinking. They don't have to think ... they are paid robots ...don't ya know?  The second BPO sounds like BPO BS to me. I would not be surprised if the BPO they are referencing is for another property!

Feb 23, 2012 01:35 PM
Dee Mayers
Covina, CA
San Gabriel Valley, CA

And the drama continues.  Reminds me of the story about too many cooks...

Feb 24, 2012 12:51 AM
Debbie Walsh
SHAHAR Management - Middletown, NY
Hudson Valley NY Real Estate 845.283-3036

Some things never change.....love the graphic Patty!

Feb 24, 2012 01:35 AM