A BPO is an acronym that stands for Broker Price Opinion. As a part of approving a short sale, a bank will order either an appraisal or a Broker Price Opinion (or both) to determine the market value of the property. Before approving a short sale, the bank must make sure that the offer presented represents true market value for the property. The agent they hire to complete the BPO can have no connection with selling the home. Occasionally, banks will order more than one BPO and compare them against each other to insure that they have the value correct. Often they give the agent 24 hours to complete a BPO and pay them as little as $35 to complete it. If the BPO indicates that the market value for the home is higher than the submitted offer, the bank could counter or reject the submitted offer. As a short sale seller, it may be scary to think that the fate of your short sale may rest on a Broker Price Opinion. But for most short sale lenders, the BPO is one factor among factors, and the REALTOR you’ve chosen to represent you can play a big role here by continuing to provide additional information to the lender that may not be represented in the BPO. Communication with the lender is essential.
Are you considering short selling your Santa Maria, Orcutt or Central Coast home? Please call me at (805) 878-9879, and set up a free initial consultation.
* Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement — this blog does not offer legal and tax advice. This blog offers general information only which may not apply to your specific situation.
In July 2006, Mint Properties opened an office in the Mission Creek Plaza on Santa Maria Way. Tni’s stated aim is to offer the highest quality representation and professional service to her clients. Independence affords her the ability to avoid a volume driven approach; the result is prompt, reliable, individualized service coupled with straightforward advice. Indeed, she brings the same level of professionalism to real estate as she did to the law.
As a Santa Maria Short Sale Agent, I am asked this question by potential short sale sellers all the time. It is important for those inquiring to understand that even though they have not missed any payments, they may have an “imminent hardship” that would qualify them for a short sale. Imminent hardship means that your hardship may not be here today, but it is definitely on the horizon. And you do not have to currently be in default on your payments to apply for a short sale. A well documented imminent hardship may be enough.
1275 single family homes sold in Santa Maria and Orcutt in 2009. This excludes PUDs, condos, and manufactured homes. This figure is slightly higher than the 1230 homes which sold last year. 175 condos and PUDs sold during the same period in 2009; compared to 130 units in 2008. So, overall the number of sales in Santa Maria and Orcutt is up.
