When doing a short sale a lender decides what the home is worth from a “BPO” or Broker Price Opinion. A Broker comes out and “appraises” the house and is paid on average $150.00 and “decides” the fate of your short sale.
It is pathetic that lenders won’t give us a copy of the BPOs? It would be helpful if we could get an actual, complete copy of the BPO? I have a new strategy you can use to get a complete copy of the BPO. A complete copy of the BPO will make it much easier to hold BPO agents accountable–because if a BPO agent calls the value higher than real market value and causes you to foreclose when we have a reasonable offer on the line–there is impact to you.
We can use this to get copies of the BPO on our short sales.
Here is the step by step strategy:
1. Request a complete itemized payoff….
2. Review the payoff to see where the BPO is itemized. If a BPO has ever been ordered, it will most likely by itemized on there. If not, it may be included in some other payoff cost.
3. Since the BPO is being paid by the homeowner, they have a right to a copy under the Equal Credit Opportunity Act. Fax the lender’s legal department a request for a copy of the BPO. Send a copy of the payoff and circle the spot where you think the BPO payment is. Request a copy for the borrower under the Equal Credit Opportunity Act. In addition, also mail the lender’s legal department the same request. If we don’t get it we can file a complaint with the Federal Trade Commission.
Further… if the BPO agent overvalued the home at that point in time in an irresponsible manner they might have exhibited a lack of professionalism to the client–and not performed their minimum services required under the license law.