Cape Coral, Fl. – experts estimate that 80% of all short sale offers never get accepted by the lender. Why is that? The biggest reason is the BPO. The BPO is the way most lenders determine the value of a short sale property. If the lender thinks the property is worth more than the buyer’s offer, then they will decline the offer.
The problem is that a lot of the time the BPO’s are inaccurate. A former short sale negotiator called the process a “BPO Mill.” The lenders care more about costs than accuracy. If your short sale realtor doesn’t understand the BPO process, then you are at risk.
Here is what we do to avoid BPO problems. We prepare our own valuation of the property. We give that valuation to the person doing the BPO. Then, if the lender declines the short sale, we ask them why. Many times it is because they think the property is worth more than it actually is. In that case, we have to appeal their BPO value.
We send them our own BPO and all the information to backup our value. Most lenders will review it. They may order a new BPO. Or, they may try to get ours “validated”. That means their valuation department will double check everything. If the valuation department agrees, then they use our BPO for the proper value.
The entire short sale process is actually fairly simple. If the short sale lender declines an offer, then you ask them why. You then have to demonstrate why they should accept the offer. If you have good data to backup your case they will re-consider. That gives your seller a better chance at a successful short sale outcome.
We always track all the sales activity in the neighborhood and surrounding area of the property we are selling. That way we can send updated information to the lender. When we keep them up to date on what is going on in the neighborhood, they are able to make a better educated decision on the short sale.
If you are considering a short sale, then you can call me at (239) 560-3149. When you call, I will explain how the process works in detail and answer any questions you may have.
Thank you for reading this. If you or anyone you know is in need of real estate advice, please do not hesitate to contact me.
Donna Bishop Realtor phone number; 239-560-3149 or email me ; firstname.lastname@example.org