I've had this deal under contract since Dec 8th 2020. Lender had BPO done February and came in astronomically high. BPO is 480k on a home that is not worth more than 300k. The realtor who did the BPO is not even from the area and gave inaccurate comps. Very difficult to comp as it is a run down house in a upscale area. Home also has many issues with unpermitted additions that have been red flagged by county building dept.
My agent has disputed the value, giving our own comps and details. That was over a month ago.
Other that value dispute on the BPO is there anything else I can do?
I am 100% sure an actual appraisal will come in at a more reasonable price. Note holder is a private investor so an appraisal is not the norm. Can I request an appraisal? If I ordered my own appraisal would it be accepted by investor?
My RE agent has helped me on multiple shortsales, but I have the feeling he may not be doing everything he can. If I paid a shortsale specialist what could they possibly provide in this deal?
I would just put your offer in based on what you think the property is worth and let it simmer. Maybe they will eventually come to their senses once they realize it's true value and no one else comes in at their perceived value.
Chad's advice is the best. Most big banks and some investors will accept the BPO value as the actual value because they don't want to or don't have the time to do the extra research on value. If this loan becomes more of a problem or a headache, it will force the investor to spend the extra time to find out why there's a problem. If your agent stays in the picture and is around when the investor needs more info, then maybe you'll have another shot.
Another option is to contact the private investor directly and make your pitch old school over the phone. Let your agent know what you're doing and get the investor's contact info.
The issue is that this loan is in default. Its a non fha backed loan. Foreclosure is pending and I am not sure if the note holder is informing foreclosing attorney to suspend auction. So to "let it simmer" may mean foreclosure.
would a short sale specialist have any more leverage here? If so what?
Typically I ask if they will consider an appraisal before I pay for one. If so, I may do an appraisal, inspection, comps, bids, etc to do a proper value dispute. It may fail still though. Otherwise the other option is to wait until the current value expires and they order another one. Best of luck!