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HOW LONG IS A BPO GOOD FOR?

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Real Estate Broker/Owner with Toth Real Estate Group, Inc 0691554

In this constantly changing market HOW LONG IS A BPO GOOD FOR? I am currently negotiating short sales, and have noticed that Lenders are sticking to their 2 month old BPO, and requesting a net to them pursuant to the percentage of that BPO.

I find myself faxing to them the recent active short sales, pending and closed sales with an explanation of why the buyer will not increase their offer, but I guess as a Listing agent my BPO means nothing to them.  

I also prepare BPO'S and I am very conservative when it comes to pricing due to the current market conditions (take a look at the whole picture). Do BPO agents think they can impress the Lenders by providing a high BPO to get this listing? At the end they are hurting these lenders, the longer a property stays in the market, the more money these lenders will lose.  

7/14- Just spoke to a negotiator for EMC mortgage and asked the question. HOW LONG IS YOUR BPO GOOD FOR? His answer- 6 months!!!!!!!  Good luck to them and all of those Lenders with the same guidelines.....

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Sara Homan
Coldwell Banker Ellison Realty 352-209-4044 - Ocala, FL
Realtor, Homes, Farms & 55+

I feel your pain!  I have a referral that had 3 appraisals and they were all way off.  Now I am struggling to get price reductions with a 9 month old listing ugh!

Jul 13, 2008 02:36 PM
Robert Huntsinger
Empire Realty - Upland, CA
Empire Realty Upland, CA - Full Service at a Discount

Yoana,

Your right, it is frustrating when the lenders are not reasonable in understanding that many markets have dropped as much as $25k in 2 months.

Take care!

RJH

Jul 13, 2008 02:54 PM
Lisa Friedman
Alliance Realtors - Bedminster, NJ
Central New Jersey Real Estate

Like Sara above, it is interesting how appraisers can come up with so many different prices (all in the same month).  Personally, I would go with the lowest active listings and their days on market rather than solds at this point.  If the lowest priced active listings aren't moving, then the price needs to be lower than that.  Of course, the pendings are also important though I would give more credence to actives at this point.

Jul 13, 2008 02:56 PM
Yoana Toth
Toth Real Estate Group, Inc - Sunny Isles, FL
P.A.

SARAH- Amazing!!! If the listings are not priced right, specially in this market, they will not sell. Good Luck to you. Isthis a foreclosure? I don't think so, otherwise it would be a REO property by now.

RJH- Very frustrating, and I don't blame the negotiators and case workers, I blame those in charge that have noticed this issue and prefer to ignore it. Well, it is costing them more money.

LISA- I agree with you 100%. I wish all these BPO agents and Lenders would think this way.

  

Jul 14, 2008 01:15 AM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Just ask for an updated BPO if you feel that the numbers isn't working for you. . just know that we asked this bfore and we got it

Jul 14, 2008 08:14 AM
Yoana Toth
Toth Real Estate Group, Inc - Sunny Isles, FL
P.A.

Fernando- Thanks I just asked EMC today and the negotiator said they were good for 6 months. I guess I have to speak to a supervisor.  

Jul 14, 2008 08:18 AM
Sidney Jimenez
Keller Williams - Miramar, FL
CDPE, Short Sale Expert, 954-665-9449,

YOANA--If you are confident about your number then you can request and pay for another BPO to be done. We had that same problem with EMC and they granted that request (as has Wells Fargo). Because of this problem, I send market updates to the negotiator,as far as new properties coming onto the market and recent price changes. You also need to make it mandatory for yourself to be at every BPO. They are getting paid by the lender and usually not much. It makes them just gloss over the information and making their number higher, not to mention that they don't want to lose their little "agreement" with the lenders by submitting lower numbers. If you meet them at the BPO, you can give them your numbers and also let them know that there is a knowledgeable agent handling this particular sale. It can influence the final number.

Jul 15, 2008 12:50 AM
Yoana Toth
Toth Real Estate Group, Inc - Sunny Isles, FL
P.A.

Sidney, Thank you for your advise... However, I don't think is a good idea to order the additional BPO to be done right now. I need a pending to close otherwise I only have one that closed since then, and the pending is the better comparable.

I do send the market updates to all the negotiators handling my cases all the time. I was just hoping that EMC would had accepted them to re-negotiate. I agree with you on attending all the BPO, I do all the time.

Thank you again,

     

   

Jul 16, 2008 06:09 AM
Yoana Toth
Toth Real Estate Group, Inc - Sunny Isles, FL
P.A.

Sidney,

I have to great identical closed sales and I have requested a new BPO, EMC continues to say their BPO are good for 6 months. I asked to speak to supervisors and they all say the same thing. Do you have the name of anyone you have dealt with at EMC?

Thank you so much 

 

Sep 13, 2008 07:22 AM
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