The BPO - Your Key To A Successful Short Sale

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Services for Real Estate Pros with Angle Consulting

As Paul Harvey would say, "and here is the rest of the story"

 

Most BPO agents will not reveal the value that was submitted to the lender but if you wait two to three days and contact the BPO agent to check if they need anything else, sometimes you can get a number. If you do you will be able to have a very clear idea of what sort of number you can negotiate with the lender. It is always worth a shot.

After about 4 days contact the lender and see if the figures have been submitted. This is crunch time!! The lender will almost never share the BPO figures with you but again be sure to ask. If the loss mitigator will not give you the actual number ask for a counter offer. This number should give you a fair idea about how the lender is valuing the property. If the number given is much higher than you expected, first ask "Is this the best you can do?"

Be sure to act surprised. It is now time to submit all the information that you were holding in reserve. This is the same information that you gave to the BPO agent.

You will need to do your best to get the lender to order another BPO. Find out if the BPO that was submitted included a repair estimate. If the report did not contain a repair estimate you will need to send in a copy of your repair estimate with pictures of the damaged areas. Send in all the supporting information that you can and work as hard as you can to get further concessions.

Getting good at validating your offer to the BPO agent is your best lever to setting the short sale up for success. The better you get at it, the more successful short sales you will do. Realize that you do not control the market and ultimately do not really know what the property will sell for but by properly orchestrating the BPO you do have an opportunity to get a significantly lower price that will create a better opportunity for you.

Yours in Success,

Dick Weiss

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Rainer
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Josh Culver
We Short Sell - Woodland Hills, CA

Great information! Do you find any pattern with the value given? When the lender counters and then you find out what the BPO was, do you see any pattern there? I was countered on a property and it was obviously not based on the BPO....the amount was so much higher than what I had estimated the value to be. I recountered low again and then said I would walk and they came down, it would have been nice to know what the BPO really was. Any ideas? Thanks.

Feb 01, 2008 12:44 AM #1
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Rainer
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Richard Weiss

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