Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 632 votes
Few questions for those who do lots of short sales...
If I have an agreed price with the bank and say I need to throw a large repair credit in there after, should I just revise the hud with a credit back or will the bank at some point ask me to get a new purchase and sale for a lower price? What are the odds of them agreeing to some repair issue credit, etc., after they have approved a SS?
If a BPO comes in too high, is there a good possibility to have it revised and what is the best way to ask for this?
How possible is it to move the law day back if the SS is already being negotiated? Is this something likely to happen, or does it usually fail, what's the consensus?
Wholesaler · Phoenix, AZ · Member since 2009 · 49 posts · 4 votes
17y
I would just revise the HUD and you might want to send some pics of the damage.
Most lenders are convinced that BPO's are good for 3months. Depending on the lender and the rep assigned to the file, they might do another one if you supply them comps that support it. Not likely but if you don't try then they definitely will not.
Lenders will postpone, especially if they are still reviewing the file. Most lenders will not even put in the request to postpone until 5 days before the auction.
Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
17y
Minna-
If you have an approval from the lender then you may need to renegotiate the offer amount becasue most lenders are working from the net proceeds on the HUD 1. If those proceeds decrease, it may void the approval.
Reworking the BPO is very difficult. Most lender will not order a new BPO for 90 days. In my opinion you have one shot at influencing the BPO.
Delaying a sale varies from lender to lender and state to state. There is no clear cut way I know to delay a sale. If there is a strong short sale offer in play or in escrow, then you have a good chance of delaying the sale.
If this is an actual live scenario playing out, give me more information like the lender, how much time before the sale, how much time has passed since the last BPO.... Better yet PM and we can talk.
Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 632 votes
17y
I am not having these problems yet, but I'm starting to do more of these and these are the questions that float in my mind as possible pitfalls.
One other question though - I am working a new one now. Originally the owners thought they already had a BPO because they kept giving me this 226k figure as the banks value. Turns out no bpo has been done (unless it was drive by - they never let anyone in the house), so my chances of getting the bpo done right are still very high.
However in their court docs, the judge has ruled for the foreclosure and they have the value of the house at 226. I suppose I should know the answer, but where did this number come from? Does it have any bearing to the bank?
Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
17y
The $226K could be tax assessment value or, as you stated above, a drive-by BPO. The bank will likely require an independant valuation like an appraisal or BPO before accepting any offer.