How Many BPOs Does a Bank Need To Order on a Short Sale?
I am really at my wit's end when it comes to banks and BPOs at the moment. In two separate Short Sales, each with different banks, my sellers and I seem to be stuck on the BPO hampster wheel.
The first is really ponderous. It's a Bank of America Cooperative Short Sale. In these sales, Bank of America orders an appraisal or BPO early to establish their net sales price. That's what is supposed to make Bank of America Cooperative Short Sales so easy to deal with. They find out what the property is worth and what they want of that value up front. Done! Contract in that meets that value. Check! Second trust, tied to the first Bank of America loan has private mortgage insurance and insists the seller pay back the remaining second trust debt. Sellers says okay. Check. Then what? You guess it...order another BPO.
WHY? Why do they need to know the value. The buyer has agreed to up the price from the first BPO. The seller has agreed to pay off the second. What is the point?
The second is just an exercise in Short Sale futility. Aurora Loan Servicing had been the first trust of a Short Sale that started in early spring. In last spring, after all the docs were collected and values established on the bank's behalf, the loan was sold to NationStar. My heart jumped up in my throat, but my Aurora rep told me that this would NOT affect the Short Sale approval time frame. NationStar's orders were to pick up the docs, review them and decision the file. You already know that's NOT what happened.
NationStar ordered a BPO. Fine. Done. Then, they wanted a second independent evaluation of value. In all their wisdom, they sent me a blank BPO form and asked me to do this independent evaluation of value. Does that confuse every else out there as much as it did me? I can't be objective. I'm the Listing Agent. I clarified the instructions. Sure enough, NationStar wanted ME to do the second BPO. Okay. Here's come the report that shows the value I NEED it to be for you to accept the contract.
All of these BPOs seem nonsensical to me. One and done is what I've been living with since 2007. Oh well. Apparently the answer to the question of how many BPOs a bank needs to order on a Short Sale is one I can not answer. I can tell you that a cat can have thirteen teeth extracted in one day and still have enough to chew food. Yeah. That's good news for a Short Sale Agent whose transactions can't seem to get to the closing table without just one more BPO. I don't want to tell what having thirteen teeth getting extracted costs. Thank goodness we have pet insurance. Unlike private mortgage insurance companies, they actually pay out on claims.