Short Sale Offer Price and BPO?

Question

I am looking at a house that my agent is communicating with the listing agent and is going to be told the BPO price that they come up with.

Once we know what the BPO price is, and if it jives with normal analysis, is there a safe % we could offer to increase the chances of it being accepted?

I read a page or two and depending on the loan type they might accept 80% - 92% of the BPO, does that sound right or is it more random than that? We are in the process of determining the loan type and if there is a second.

If we give a strong, simple offer is there any chance it will speed up the offer? I have read anything from a month to a year.

Phil Z. · Answer

In most cases 88% is probably the lowest unless you dispute the valuation (listing agent has to do).  They could want anything from 88-100% of the BPO.

If your offer is complete with all required initials, any lender required 'verbiage' and/or SS addendums and updated proof of funds .. it will prevent delay's but might not make it go 'faster' per-say.

Wayne Brooks · Answer

Any BPO price that the listing agent comes up with, even though it is hopefully relevant, will Not be the BPO price used by the lender.  Some investors will have their BPO agents exclude any short sale/REO comp.s, which will raise the end price.  The investor(actual note holder, not the servicer/bank that you'll be dealing with) sets the standard for the BPO procedures.  Yo will likely Never know the amount of the actual BPO performed, just a counter offer number.  Response is impossible to predict.  Certain BofA, and most Nationstar, serviced short sales will be required/requested to be run through the gangsters.com (auction.com) auction "bid verification" process.  Most have success with having the owner refuse to participate in this.  Some go through it, and say that other than a 30 day delay, it works okay.