Posted by christine.mendenhall on November 16, 2006 at 18:04:53:
First, a BPO is a Brokers price opinion. Banks get them by hiring a real estate agent to do a comparative market analysis on the property. You could call it an appraisal, with out the appraiser. When you submit your SS (short sale package) to the lender, they will do their own review and appraisal of the property. Not that your not a nice and honest guy, it’s just that the lender has to do it’s own due diligence as to the condition the property is in and access for themselves what that property could potentially sell for in the open market.
My answer to you was not, in any way, a reference to how I get the money to fund my deal. I wanted you to understand that it?s not necessarily about the information you give to the lender, it?s about the due diligence the lender does after your package is submitted that will make or break your deal.
So, step by step, here it goes? You are going to submit that package to the lender; you will call them in 24hours to make sure they have received it. They, in turn, will tell you it?s a ridiculous offer, ( and if they don?t we have to re work your bidding process because you are bidding to much) Next, you will say ? I understand that you feel this is a ridiculous offer, however, given the condition of the property and the current downward spiral the real estate market is in, I know that if you?ll do a BPO your BPO agent (the realtor hired to give their opinion on price) will confirm what I?m telling you. They will then, most likely, moan and groan some more at which time you, in your nicest investor guy voice, say ?What state are you guys in?? They will reply, if they say anything other than your state you reply with ?Well here in (insert the name of your state) the real estate market has dropped considerably. In fact, houses in our area are selling at 5-10% lower this year, than they were last year, and that?s for the average house that doesn?t have the kind of repairs this house does.? ?Ya know, US News, just put out a report in November (and they did) stating this is the largest drop in real estate value in history. If they answer with your state you say the same thing except, instead of saying ?Well here in? You say ?As you are already aware?? and then finish the sentence. Or, make up something totally different that is unique to you.
They will order that BPO, when they do, they?ll ask who should be the point of contact, that should be you. That?s enough to get you started. Whe you get to that point, I?ll take you through the rest. Otherwise, this post could turn into page upon page.
Let me know if you have any other questions,
C