BPO Questions
Since the Mortgagee is using the BPO for starting point for SS consideration.
Can anybody comment on Older homes that are in fairly decent condition, with fair equity 10k - 20k, and how you can present the case to the mortgagee. (are these even worth consideration?)
J.Kaller says 80% of BPO is generally the SS acceptance. How can you skew Mortgagee impressions regardless of BPO?
Are the owners still in the house? I have heard to take 'ugly' pics of the house. Make the blinds crooked...
I have also heard that the 80% rule is only on FHA and VA, that is 80% of the BPO, not the payoff. I was just at my local REIA meeting last night and there is a guy there that is getting the bank to accept 44k on an 80k balance. He said he met the BPO at the property and 'shmoozed' him and help get the BPO price he wants. And he provides his own low comps.
Just what I have heard, I haven't done it. I also heard last night that the average cost for the bank to foreclose is 40-45k with all their fees and attorneys.
Good luck.
The art of short sale acquisition requires a blended skillset including the ability to manufacture supportive market data, write a compelling business proposal, and negotiation.
If you like the nuts and bolts of real estate and have some imagination... you should be able to 'skew' the data in the BPO to support your Proposal.
If you can't, than it wasn't a good short sale candidate to begin with.
The first step is to prequalify the ss candidate for feasibility.
Thanks for the replies.
I have been getting response on marketing from preforeclosure properties that are less than 2 years old and have some equity which prompted the question.
On another note...
SSpro can you comment on what approach you are using with the seller so that you are avoiding litigating promises as to back end equity, or restoration of the loan?
Also, when sumbitting the offer for SS, if I have a signed Deed, why would I ever present that to L.M. if all correspondence is in essence on behalf of the mortgagor?
"SSpro can you comment on what approach you are using with the seller so that you are avoiding litigating promises as to back end equity, or restoration of the loan? "
The Sellers are usually not permitted to receive any proceeds from sale. They understand that. Sometimes, if they need "U-Haul" money, I make a dedicated, tax deductible gift to a non profit organization who, in turn, makes a gift to the former homeowner.
In a short sale, there is no restoration of a loan. I'm not sure what you are asking.
"Also, when sumbitting the offer for SS, if I have a signed Deed, why would I ever present that to L.M. if all correspondence is in essence on behalf of the mortgagor?"
Again, I'm not sure what you mean by L.M. And, for the record, I don't advocate taking the deed, so I can't comment on problems arising from that act.
If your questions are specific, why not PM me....