Broker Price Opinions - BPO - Bailout Assistance

By
Real Estate Agent with RE/MAX Rock-n-Roll Realty ID-DB8619 & WA#9791

Well, here it is 2009 - I have been selling Real Estate for 22 years this coming July.  As all of 'old Timers' know ... things have really changed!         I have been brainstorming to figure how to generate the income; 2 of my good listings would be expiring 11:59 pm 12-31-08 ... I wasn't able to convince the sellers to let me continue to try to get their homes sold ... Both would be keeping the homes if at all possible ... one had decided to rent the home out, the Husband has been living in Southern IDAHO the past Year & 1/2 working and they decided to just rent it so the wife could join him down there ... so I most likely will get to put that back on the market in the future ... and the other seller hoping to particiapte in the Bailout Plan ... I had already lost another of my listing the 28th of October, with the sellers calling me up to see if they could just withdraw their home from the market, before it expired ... as they had been called by their Mortgage holder and offered assistance with the 'Lenders Bailout Plan'  The owner telling me, the economy had been rough, (no KIDDING!?)  they were only 1 payment in arrears but their lender called them and offered them quite a deal...they would be restructuring the loan to the fair market value, reducing the interest rate at a fixed rate and then washing away the EXTRA owed if the debt was higher than the value ... wow ... that sounds like a sweet deal.

of course I released them from the listing ... I had only had it on the market approx 6 months ~  Listing Date 5/28/2008 Expiration Date 12/31/2008 Off Market Date 10/28/2008 Days On Market 153. the Original Price was $275,000 (they had an appraisal from just the year before for that amount)  to the final Asking Price $249,000 ... my sellers were MOTIVATED, really they were  ... We ( my business partner & me!) had only spent 4 of our Sunday Afternoons in their home having Open houses.  Advertised the home many times, over & over! We had only advertised it EVERY MONTH in the Local Monthly Homefinder... in fact it would be in the November issue, the 6th month ... but this is OK ... I will just steer those buyers to another Great house similar to theirs should I get any calls on that AD that was already printed ... we would receive our 300 copies November 1st! we had a great Virtual tour of the home also, a professional one! (our cost $125.00)  We had showed the home many, many, times ... as it was a great looking , up-kept home ...  I thought it was priced pretty darn good with all that it had to offer ... but we could not find a buyer... so most of us Realtors know the rest of the story!  ... but as the Broker/Owner, the one that pays all of the bills... we really understand. 

I was contacted last week - Date Ordered: 12/24/2008, by a company I do BPO's for ... they needed an Opinion of Value on this home ... I thought hmmmm, I accepted the order & I did it ... I read through all of the criteria of the order and it was not mentioned as to disqualifing me from doing this BPO because I  had it listed before ... and I certainly would be honest and unbiased ... so I did the BPO ... Obviously another Realtor in the area had done a BPO on the property before I was hired to do one.  When you have done enough of these BPOs you know the system ... and when I chose from the drop down menu the location of the property, I entered the Urban selection ... it had a pop-up that said 'the last record they had of the subject, the Realtor described the property as Rural, did I want to explain my choice?' my comment: 'this is a nice older home, I am familiar with it from being on the market, I have shown is several times. It is certainly not Rural. It is located walking distance to downtown' ... well by the time I had completed the Broker Price Opinion ... I can assure you I was not too far off on the final listing price we had on the home ... on the BPO I came in with As-Is Value of $234,000 ~ list price of $239,000.  My final comments on the BPO were:   the subject is an older home, will always need upkeep and repair. It has a lot of yesteryear charm. Home is lived in with a busy family of 5 with 4 big dogs, whom were lucky dogs and got to sleep upstairs in the master bedroom area with owners. The home is well cared for. But the reason for lack of sale at the time of listing would be just slightly overpriced at time of withdrawal from the market, and extremely overpriced at the beginning of the listing.  Home had an odor, smelled of dogs, not necessary a urine smell, it had a musky smell, lived in. this is a nice older home, I am familiar with it from being on the market, I have shown is several times.

So wow ... why didn't it sell while I had it listed ... It certainly was not from lack of advertising, marketing, showing, brochures, signage, trying!  ... Blame it on the Economy!?  The BPO order sat in my Agent Menu Portal for about 3 days ... they must of read the guidelines also ... wondering if I was really allowed to do this BPO, since I had had it listed at one time ... with it finally getting accepted ... So I will atleast get back $65.00 for the BPO to help pay for my efforts when I had it listed!

So I will be interested in seeing how much these sellers are going to be helped with the Bailout Assistance ... I suppose they could get a better interest rate - Weekly Mortgage Rates ~ Freddie Mac National Averages 30 Yr Fixed 5.14%  15 Yr Fixed 4.91% ...   but can the value be that far off?  I know that the sellers still had room to negotiate when we had it listed at $249,000 ... so it is not like they owed $275,000 that the appraisal came in at a few years earlier.  I will give them a call next week and see how things are going on the Bailout Assisitance!

and I am wondering if I should let my house payment fall 30 days late ...  

Posted by

Patty Luther
Rock-n-Roll Realty
serving ID & WA
office: 208.743.9772
Patty: 208.413.0508
full time Realtors serving the Lewis-Clark Valley
www.Rock-n-RollRealty.com
~locally owned and proudly independent~

PattyLutherBusinessCard

Comments (12)

Marjorie Taylor
Riverside Homes - Saint Augustine, FL
New Homes in St. Augustine Florida

Only one payment missed and the lender offered to restructure the loan to the fair market value, reduce the interest rate at a fixed rate and then wash away the EXTRA owed if the debt was higher than the value ... wow who is the lender?

Jan 01, 2009 11:46 PM
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

I do BPOS here and would love to do more as this is helping in these times. If your lender works in this area forward on to me if you would. as to your post it was really fascinating to read. There are so many diffent stories with each BPO that it is amazing . Have a great 09

Jan 02, 2009 12:45 AM
Tony & Darcy Cannon
Aubrey and Associates Realty - Layton, UT
The C Team

I am surprized by the sweet deal that the lender gave them after being behind only 1 payment.  We also do BPO's, in our market, it seems that every Realtor is trying to do them.  They don't come along all that often.

Jan 02, 2009 01:19 AM
Janet Mette PA
Watson Realty Corp - Jacksonville, FL

I feel your frustration. It is bad here in Jacksonville ,Fl too. Takes Banks so long to approve the short sale, many times the buyers walk. BPO's are turned in and then they want you to adjust them. I had one who wanted me to use a comp another agent used for the subject. I pulled it up and it was a duplex. The subject property was single story residential home.

Jan 02, 2009 01:26 AM
Patty Luther
RE/MAX Rock-n-Roll Realty - Lewiston, ID
Lewiston ID Real Estate, Idaho-Washington

Charlie:  most companies have a sign up area... here are a few I work with...

Integrated Asset Services  www.iasreo.com

 eMortgage Logic, LLC https://www.emortgagelogic.com

HomeSteps  www.homesteps.com

 DARES http://re.oomc.com  

Link to OOMC Broker Guidelines: http://www.oomc.com/post/OOMC_BrokerGuidelines.pdf

I have several more...but this should get you started!  Please eMail me to confirm you got his message!   toyouisell@gmail.com

thanks,  Patty

 

 

 

Jan 02, 2009 02:40 AM
Anonymous
Appraiser Rick from Cleveland

Why dont you folks get your appraisers licenses and charge $475.00 a pop. The 1004 Form is not that much work then you are already doing. Work smarter not harder.

Rick

 

Jan 02, 2009 07:28 AM
#6
Mark Organek
And the United States of America - Mesa, AZ
It's not a game, it's your life.

Patty, nice of you to put the BPO companies out there for Charlie.  That type of goodwill should take care of you this year.  When I do my listings out here that will go short, I have the client attempt modification before the listing and after I submit the short sale package.  This way, when an offer comes in, the servicer has no question as to the client wanting to do the right thing.

Jan 10, 2009 09:03 PM
Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula
Realty Works Temecula - Temecula, CA
Realty Works Temecula

Patty, Six months is not all that long in this economy....Too bad that they would not let you keep the lising.  It is always disapointing when clients list with someone else, especially when they drop the price.  Jim Frimmer here on A.R.   had a listing that did not sell they re-listed it with someone else and now are back with Jim....

Jan 25, 2009 10:48 AM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Wow, who is this lender that's cooperating with the borrowers?  Wow, I'm impressed, I have seen nothing but lack of cooperation from lenders in our area.

Regina P. Brown

Jan 31, 2009 05:39 PM
Anonymous
rose

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Dec 12, 2010 05:05 PM
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Anonymous
rose

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Anonymous
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