Orlando Real Estate Voice, Short Sale Expert & Specialist» REO’s

What is a BPO? As it relates to a short sale in Orlando

August 7th, 2008 Jerry No comments

BPO stands for Broker’s Price Opinion. The term Broker’s Price Opinion (BPO) is a method that a Real Estate Broker (or an agent acting on behalf of their employing broker) uses to estimate the value of a Real Estate property/house. The estimate of value is submitted in a BPO report (2-3 pages) that includes local Orlando Real Estate market information, neighborhood analysis, and (comps) properties that compare to the (subject) house that is being valued. This method of estimating a value has similarities to a Certified Market Analysis CMA and a residential Real Estate appraisal.

Performing a BPO, in the BPO industry, means that a Real Estate Professional (agent, broker, or appraiser) is requested by a financial institution to submit an estimate of value for a property in a BPO report for a fee. A financial institution may order a BPO for the following situations:

home equity lines of credit
home equity loans
requests to remove PMI – Private Mortgage Insurance
REO/Foreclosures/Short Sale
Any other reason that a bank/lender needs to make a financial decision on a property

BPO Process

A bank receives an application for a Home Equity Loan, Home Equity Line of Credit, request to remove PMI etc… The loan officer must determine the value of the home.
The bank contacts a BPO Company for a BPO (they may order multiple BPOs for comparison) on the property in question. A due date is established for the BPO (usually within a week).
The BPO Company maintains a list of Real Estate Professionals that perform BPOs. The BPO Company contacts a Real Estate Professional on their list to perform the BPO. The Real Estate Professional’s due date is a few days before the final BPO is due.
The Real Estate Professional contacts the homeowner to schedule an inspection of the home or property (if an interior inspection is required).
The Real Estate Professional physically inspects the home/property.
The Real Estate Professional gathers Real Estate market information and compiles the information to determine a valuation.
The Real Estate Professional submits the finished BPO to the BPO Company.
The BPO Company conducts a quality review of the BPO.
The BPO Company submits the final BPO to the Bank/Lender.
The BPO Company pays the Real Estate Professional.
The Bank/Lender pays the BPO Company.
The Bank/Lender makes a financial decision based on the opinion of value contained in the BPO.

Categories: Bank Owned Properties, BPO, REO's, short sales Tags: BPO's in Orlando, Orlando Fl. Real Estate, Orlando Homes For Sale, short sales, Windermere Fl real estate, Winter Garden Fl. Real estate

Ten Things to Expect on Your Way To Your Orlando Fl. Short Sale

July 30th, 2008 Jerry No comments

The bank is going to what to see your entire financial picture. This means you will need to provide copy of back taxes, paycheck stubs, bank statements, personal financial statement, etc. They will want to know what all your assets are.
The bank may want you to sign a promissory note for the difference, now it will most probably be at a hugely reduced amount and may include monthly payments.
When the bank gives the final approval of the short sale, they may request that the escrow close in as little as 30 days, sometimes sooner.
As the seller, you can not receive any proceeds from the sale. Period.
Your Real Estate agents, and Title company, may have to work for reduced fees.
The banks are incredibly overwhelmed with short sales and many times a decision can take upwards of 90 days; however, recently the approval process has been streamlined at many lenders.
Your property may be foreclosed on during the short sale process because the bank can not process the short sale in time; however, if you have a strong agent they should be able to get the foreclosure postponed give me a call to help postpone any foreclosure dates.
Do not expect to receive any information on a regular basis. There may be weeks that go by with no news from the lender. This is perfectly normal.
The bank will want to get a BPO (broker price opinion) and/or an appraisal of your house.
Be patient. This is the best policy. Try to avoid being stressed out over something that you can not control. If you have a well trained agent, you are in good hands.