Multiple BPOs???

Question

Can a few of you chime in on how often the bank will send out 2nd and 3rd BPOs?  Is there a way to know if they will send out future BPOs?  I just had a couple BPOs this week and I want to change the price in the MLS to try and solicit my end buyer.  I'm hesitant however in case the bank sends another BPO and they see the higher price and it kills my deal with the bank.  Any insight here would be much appreciated!!!!

Clifton Jones · Answer

Tom, another approach can be to have it listed at the amount owed to the lender through the first BPO.  Whoever meets with the BPO agent can just inform him/her that the listing is what is owed to the lender and does not reflect the fair market value.  I know a handful of realtor/investors who use this approach.  This usually keeps other offers from being submitted.

You need to make sure that does not violate the realtor's ethical obligations, so that will be up to the realtor to make that call.  But, if it is done, you can then lower the price at any time and be able to justify the reason it was lowered.  This is assuming that the price you eventually sell at will be lower than the amount owed to the lender(s).

Tom Medwin · Answer

Wow, thanks everyone.  That is all exceedingly helpful.  I've heard so much talk about getting the BPO to come in low I'm probably over thinking it.  I'm just going to keep doing the best I can with them and not get all paranoid about 2nd and 3rd BPOs that may come.  I think I'll continue to list them at my original offer price for the 1st BPO, and then relist at a higher price to get my end buyer.  If a 2nd BPO comes out and sees the higher price then I'll just have to deal with it and take it as it comes.  Again, I really appreciate everyone's insight and contributions.

Scott Hubbard · Answer

James is absolutely correct.  If your relying on the BPO coming in at a favorable price, your going to be disapointed most of the time. 
          
          You can never have too much time to market your properties, so them on the market as soon as possible.   Do not worry about multiple BPO's.
          
I personally market the property after the BPO and drag my feet during the subsequent counter-offers to buy more time.  Some lenders you need market first thing because the turnaround is much quicker.  If you have two mortgages blame the other lender for taking so long to get decisions.
          
          In my opinion, you should pick a marketing strategy tailored to your market's strength, location, and property type or condition.  What works in my market may not work in yours.  This is where knowing your market statistics can really come into play.
          
          There is no canned approach when it comes to short sales.  You really need to understand the factors affecting your strategy, make a plan, exectute, and reflect on what went well nad waht did not after disposition.

James Ward · Answer

Tom,

I would recommend not getting all worried about BPO's.  Have who ever is in direct contact with the Lender make sure that you are contacted to schedule any BPO.  When a BPO is ordered, the agent then will call you to set up the appointment. (About 90% of the time we get called.  Only about 10% or less of the time do BPO agents just go striaght out to the property.)

We have negotiated properties where the Lender(s) only ordered 1 BPO.  We also have had many where several BPO's have been ordered.

Unlike smitlit, most of our clients have the property listed from day one.  As for the Listing price affecting the BPO.  Yes, it can, yet again sometimes.  It all depends.  You should be focusing your negotiations on justifying the offer, not so much about the BPO.  The BPO is only 1 in a series of numbers used by any Lender to calculate how much they will SHort the property for.

Paul Cordero · Answer

Some of our investor's require 2 IBPOs (interior), but most only require 1.  However, we will order additional IBPOs if the SS is in the review process, or an extension is needed, and our IBPOs are greater than 90 days old.

Our company regularly does drive by inspections for our investors which are more for records keeping than SS review.

Maryann L. · Answer

I've had multiple BPO's take place.  Usually a first and second will order them, and then if it's over 3 months, they may order another.  There is no way to tell, how often they will order until you're close to approval.

I know different investors do it different here and by no means am I saying to do this, but we don't relist the property until close to approval.  Basically when the bank starts sending the arms length addendums etc., we start to relist.  I know that others here relist right away to get the end buyer locked up.  We usually don't relist until we're sure we're getting an approval.