What is a short sale BPO?
A BPO (Brokers Price Opinion) is a process by which a realtor/appraiser is appointed by your lender, and that realtor will come out to evaluate the property and give his “opinion” on what the value of the property will likely sell for to the general public.
Can short sales take place at closing?
In short sales, sellers and buyers might learn at closing that sellers’ lenders have disapproved a previously agreed-to closing cost contribution, for example.
Why does a short sale take so long?
With a short sale, the seller is asking the bank to take less than the amount owed. Even if you’ve made an offer and the seller has accepted it, it’s not a done deal. The seller’s bank must approve the sale, and this is where the big delays can happen. Banks are losing money in a short sale and aren’t too keen on it.
What does a short sell mean for the buyer?
A short sale is when a mortgage lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the property by a financially distressed owner. The lender forgives the remaining balance of the loan.
Who submits the BPO in a short sale?
In all cases, a lender must approve a short sale, and that’s where the broker price opinion (BPO) comes in.
How accurate is a BPO?
Are BPOs Accurate. BPOs have been used for many years by the lending industry and mortgage servicers. BPOs have proven to be accurate and reliable. Based on the continued and increasing use of BPOs within the mortgage default and mortgage servicing industry, we knew that BPOs must be accurate and reliable.
How is a short sale executed?
To accomplish a short sale, a trader borrows stock on margin for a specified time and sells it when either the price is reached or the time period expires. Short sales are considered a risky trading strategy because they limit gains even as they magnify losses. They are also accompanied by regulatory risks.
Do you owe money after a short sale?
After the short sale is completed, your lender might call you or send letters stating that you still owe money. These letters could come from an attorney’s office or a collection agency, and will demand that you pay off the deficiency. Your lender or the collector might even try to intimidate you into making payments.
Can short sales be negotiated?
Can You Negotiate A Short Sale? It is entirely possible to negotiate a short sale, but doing so can be a time-consuming process. Instead of negotiating with the seller alone, as is the case with most traditional sales, short sale negotiations must be approved by the lender, too.