RMV- Reconciled Market Value

Anybody familiar with how RMV is calculated? How would the lender calculate "what someone is willing to pay" if they're not the ones patrolling the offers that are coming in?

Edited: 06/26/2010 at 11:29AM

Bill Gulley

Real Estate Investor · Springfield, Missouri

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Icon_minipost Feb 03 '10, 08:00 AM

Hi, I think you got a poor explanation there, since that's what the BPO is supposed to establish! LOL

Loss Mitigation/ they probably do a review appraisal of the information received. This is common in the secondary market and on other loans on a random "inspection" basis. I use to do reviews in examinations.

Basically, it's checking the comps to see if they are in line, if the adjustments were made properly and if the value assessed is reasonable for the data. Many times some adjustments will be made, thus, what you were told is, the value expected to be received or what the property will sell for. One thing to look at is that the BPO may be viewed at a retail level or value and the review will consider other market conditions which will reflect the nature of an REO sale. Hope you get an idea of what's going on with that. Bill

Edited: 06/26/2010 at 11:29AM

Scott Hubbard

Rehabber · Tucson, Arizona

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Icon_minipost Feb 03 '10, 08:24 AM

I agree with Bill.

When you have the loss mitigator on the phone, this is your chance to grill them about the BPO. Find out if the comps used were inline with the property.

For instance:

1. Same number of bedrooms / baths/lot size/ etc.

2. Ask if any repairs were noted

3. Average sold comp, hi/lo etc.

Your trying to punch holes in the valuation. Of course, they do not always share the information, but Chase is usually pretty good about it.

Edited: 06/26/2010 at 11:29AM

Justin S.

Rehabber · Chandler, Arizona

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Icon_minipost Feb 03 '10, 09:58 AM

Funny story with Chase. I was on the phone with a processor cause I could not get through to negotiator.

She says "let me read the file and see if I can get you status".

Well she starts reading in a fast pace way kind of how people skim through stuff, but she's reading aloud. She keeps going and I'm listening. She gets to the BPO and was reading so fast she read the BPO price to me.

I said "So, the BPO came in at $217K"

She goes "Uhhhhhhh....."

I said thanks for the status.

Edited: 06/26/2010 at 11:29AM

Justin S., Wheelhouse Properties
E-Mail: wheelhouseproperties@gmail.com
Telephone: 4806780446
Website: http://www.wheelhouseproperties.com
Realtor, Re-modeler, Cash Buyer

Chris Guthrie

Real Estate Investor · Oxnard, California

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Icon_minipost Feb 03 '10, 10:13 AM

Originally posted by wheelhouse

Funny story with Chase. I was on the phone with a processor cause I could not get through to negotiator.

She says "let me read the file and see if I can get you status".

Well she starts reading in a fast pace way kind of how people skim through stuff, but she's reading aloud. She keeps going and I'm listening. She gets to the BPO and was reading so fast she read the BPO price to me.

I said "So, the BPO came in at $217K"

She goes "Uhhhhhhh....."

I said thanks for the status.

I just got a good chuckle out of that one... :mrgreen:

Edited: 06/26/2010 at 11:29AM

H Mann

Real Estate Investor · Bay Area, California

211 posts
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Icon_minipost Feb 04 '10, 06:41 AM

Originally posted by Bill Gulley

Hi, I think you got a poor explanation there, since that's what the BPO is supposed to establish! LOL

Loss Mitigation/ they probably do a review appraisal of the information received. This is common in the secondary market and on other loans on a random "inspection" basis. I use to do reviews in examinations.

Basically, it's checking the comps to see if they are in line, if the adjustments were made properly and if the value assessed is reasonable for the data. Many times some adjustments will be made, thus, what you were told is, the value expected to be received or what the property will sell for. One thing to look at is that the BPO may be viewed at a retail level or value and the review will consider other market conditions which will reflect the nature of an REO sale. Hope you get an idea of what's going on with that. Bill

Bill, does this value usually end up being higher/lower or about the same as the BPO?

Edited: 06/26/2010 at 11:30AM