Posted by Heather -Tx on September 30, 2003 at 21:25:38:
Not Luke,
But what you need is an Authorization to Release form so that they will speak to you about the sellers loan.
Hope this Helps,
Heather
Short sale–BPO is too high! - Posted by luke-NC
Posted by luke-NC on September 30, 2003 at 05:42:32:
Trying to do a short sale:
The Broker who does the BPO on a short sale gets it completed 3 weeks ago, the bank, after much delaying, finally says that the BPO is at $275k.
Little history, this home was appraised extremely high by a shady appraiser, hooked in with a shady atty, broker, etc. They appraised new homes about 100k over value and took the difference in cash back at the closing, then let the homes go into foreclosure. It was a huge scam in this area.
The original balance on this home was $320k. Now, i know for a fact that comps are at 180k to 190k tops. So, I tell the loss mitigation guy that the BPO is way off, I’m no longer interested. He says OK, well thats the least we’ll take. Right thing to do? My offer was $150k. I’ve been doing short sales for about a year now, I’ve never had this happen.
Is it in the banks best interest not to sell some homes on short sale?
Re: Hard to belive - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on September 30, 2003 at 16:57:59:
that all this deception and fraud would be done by a broker for a $50 - $75 BPO. Perhaps your “half price” offer is too low to suit the owner.
Re: Short sale–BPO is too high! - Posted by rm
Posted by rm on September 30, 2003 at 16:34:46:
You can dispute the BPO and request that another one be ordered.
Better yet, an appraisal instead of a BPO.
Sometimes, they’ll give you a copy and then you can specifically cite any errors you find.
The appraisal/second BPO may have to be done at your/the seller’s expense.
May be worth it, if you have a good case.
I also suggest that if there were any news stories on this real estate scam in the local papers that you get a copy to the lender, as well.
Re: Short sale–BPO is too high! - Posted by Tom PA
Posted by Tom PA on September 30, 2003 at 13:42:55:
This isn’t surpising. My mother is a broker in the Atlanta area and does BPO’s quite frequently. It is often that she has to defend her low valuation because another broker took the lazy way out.
She actually had one that the building was gone. Burned to the ground. Yet another agent valued it as if the building were still there. Obviously they didn’t go out to the property.
She’s ran into situations like you dscribe where there was a scam running up the price. It’s not uncommon. She has to defend these but when good documentation is provided then everything gets cleared.
A lot of the BPO’s that she does is due to short sales. You guys in Atlanta have got to love the ones that she does because she is pretty tough on them.
Re: Short sale–BPO is too high! - Posted by MattFL
Posted by MattFL on September 30, 2003 at 12:05:42:
Hey Luke,
That sure is frustrating. I’ve dealt with a few lenders that were just adamant about taking the house back and losing more money. So what can you do. I suggest you fax a letter to the lender and tell them how Ms. Seller was involved in a real estate scam, where the broker and appraiser inflated…(what you said). Let them know that you (or the seller) spoke with an attorney and the appraiser, broker and all lenders, including (your Lender), will be named in the suit, which won’t be resolved for at least 24-36 months. Let them know that you’re under the assumption that the lawsuit against (your Lender) will be rescinded if you can get the short sale approved, which would allow you to purchase the property. That might get their attention. I’ve never had to use this myself, so let me know if that works.
Re: Short sale–BPO is too high! - Posted by Kevin Hamilton
Posted by Kevin Hamilton on September 30, 2003 at 09:47:14:
Believe it or not, sometimes banks just don’t care. Blame it on the fact that they are run by human beings, I guess.
Re: Short sale–BPO is too high! - Posted by Bob_IL
Posted by Bob_IL on September 30, 2003 at 08:33:49:
I had a similar thing happen recently. Everything was going great until they got the BPO. A realtor from a more upscale neighborhood was hired to do the BPO. I was supposed to meet him at the property. He found out the house was listed and had a lock box. He went before we had our appointment. His BPO came in at $195K. The listing agent called the lost midigation department and told the rep that it might be worth that in the BPO agents neighborhood but certainly not where the house is located. Heck, it would be worth that much in perfect condition. So it looks like the bank’s going to own the house. The second and third lien holders will be wiped out. The bank will be luckly to break even. It’s amasing how banks do business.
Re: Short sale–BPO is too high! - Posted by jim
Posted by jim on September 30, 2003 at 06:56:29:
Luke,
I am sorry, but I can’t help you with your question. I have not done any short sales as of yet, but I have one that I need some advice on. I am meeting with the home owner’s this evening and they are giving me all their info. They filed for bankruptcy, obviously they are behind in payments, and there is no equity in the house. What kind of letter is needed and what should it say to allow me to talk to the loss mitigation dept. Thank you and I appreciate your help and I am sorry I can’t help with your situation.
Good Luck and best wishes,
Jim
Re: Hard to belive - Posted by Bandman
Posted by Bandman on September 30, 2003 at 21:12:45:
Unfortunately, there was in fact a bunch of this crap going on here in NC. I haven’t paid enough attention to the news stories to point fingers at anyone but what Luke says sounds about right.