Short Sale In Process
Sent in sales contract for 60k on a mortgage with 139k principle balance. They have been paying on the loan for 4.5 years. The lender is ordering a Broker's Opinion of Value and I am meeting the broker at the property. Comps vary widely in the area. As is value is roughly 130k. I have pointed out the water in the basement and the mold, not a big problem due to my inspector, but the bank doesn't know that. B/C lender holding the note. The borrowers are willing to walk away from the home, no matter what happens, auctions date is the 12th of Feb. What can I do to get the bank to look more seriously at the deferred mainenance and problems, besides point it our in writing in the short sale package and walking the broker through the property and pointing everything out to him.
The key to opening the profitable door of short sales is to have a very low BPO. Point out whats wrong in the house to the realtor and get inside of his head. I usually do this by making little comments or suggestions such as: "You seem like a very intelligent person.Who in their right mind would submit even $60,000 as a BPO on a house that needs so much work?" You can send in your own low comps and take you own pictures and send it to the bank. I invited a realtor who did a BPO for me out to lunch, and when he sent in the BPO, he called and told me how much the BPO came in at and was very friendly.
Sorry to sound so uninformed, but whats a BPO?
Read "Blown away by their CMA" a wordy essay of the world of BPOs.
Available on this TCI Site. IF you can't find it, email me & I'll send it to you in word.
Broker Price Opinion (BPO)
A written estimate of the most probable sales price of a property provided by a licensed real estate broker with experience in the specific locality of the subject property. Value of the subject property is estimated by comparing like properties that recently sold and adjusting for differences. Often provided as a means to establish a listing price for a property.[ Edited by TheShortSalePro on Date 01/22/2004 ]
BPO stands for "Brokers Price Opinion".
The realtor or broker gives their opinion on what they feel the house is worth as is.
Thanks.....