[vc_row][vc_column][vc_video link=”https://vimeo.com/207331480″ align=”center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
Today’s Bonus Tip :
CHALLENGING THE BPO
We are going to challenge the BPO. There have been many
times when a bank came back with a no based on its BPO or
Recently, we had a situation where the bank came back
with a BPO that was much too high to make the deal work. We
challenged it and were able to get our deal accepted.
We wrote a letter to the bank challenging the BPO and made a
new offerOur original offer was $199,000. This property was realistically worth $415,000. The bank sent an appraiser who gave the property a value
of $295,000 based on its poor condition.
The property needed a lot of work and we felt $295,000 was too much to pay. Upon reading our letter, they sent a different agent to the property who gave it a value of $215,000. With an appraisal of $295,000 and a new BPO of $215,000, the bank decided to accept the offer of $250,000. It was a great deal for us, we saved the homeowner from foreclosure, and the bank
removed the bad loan from its books.
The point is folks, when a bank says no, don’t give up.
If you feel they are asking an unrealistic number, challenge it. The worst they’ll do is say NO again. In addition to raising our offer, we are going to challenge the BPO.
- A great tactic is to say that you have a business associate who is
a real estate agent and you told your associate about the high
BPO. Your associate was stunned and says the real estate
agent who did the BPO is crazy, must not work the
neighborhood, and that the bank will lose a lot of money.
- Have your agent write a letter to the bank stating the BPO is way offbase
and suggest the bank send another person who actually works
the neighborhood. Many times they will.
Banks don’t want to lose money any more than they want to own property.
If the bank feels there is a chance the first BPO was off-base, it may
send a different appraiser or real estate agent.
Be certain to meet the new agent or appraiser at the property to point out every single thing that is wrong with the property.
As we mentioned earlier, most agents or appraisers tend to have “enduser”
mentality; this is definitely in your favor. Anyone with end-user
mentality will be shocked with most of the properties you find.
Have your agent volunteer to do the BPO at no charge.
If you have two agents, get two letters; the more the better. We are trying to make the bank question its current BPO.
In your letter, make sure your agent points out that he/she is not interested in the listing and will do another BPO at no charge.
Remember, the loss mitigation rep is usually out of town and the
person the bank sends to do the BPO is often looking for the listing.
Challenging the BPO is very effective and can make a huge difference
on the final price.[/vc_column_text][/vc_column][/vc_row]