Meeting the BPO Agent....

[Herm M.]

My recent BPO from WaMu was a drive-by, they didn't check the inside of the home.

I've been told that the next one will also be a drive-by...they don't reveal when it will be done, and there's no appointment set because the BPO agent doesn't go inside the property.

Is this normal? How can I persuade the BPO if I can't meet the agent?

[Scott Hubbard]

Agents say: We are not paid enough and price dictates quality.

My response: No one forces you to accept the $40. If you accept the order and fail to do your due diligence up to the ethical standards you were sworn to uphold, then you are a fraud and it will be only a matter time before your are out of the industry.

Agents say: Sometimes agents are doing BPOs to build a relationship with asset managers. I am friends with several large REO agents. Big REO agents all have one thing in common..... Quality of work and persistence.

I am a former agent and meet with my former colleagues to discuss the industry all the time. I often joke about all the agents I run into and how so many of them are doing BPOs thinking they can develop relationships with asset managers. That is an absolute JOKE! Everytime I hear an agent tell me this I nearly nearly rupture a vessel in my brain trying not to laugh. Are agents really this stupid? YES!

The industry has changed so much. Independent facilitators are dispatched to distribute leads to the agents. These facilitators have absolutely no direct contact with the loss mitigators and especially the asset managers.

It is even rarer that asset managers pick their own REO relationships. These decisions are made by executives many positions up from the lowly asset managers. The REO agents I know fly out and meet these executives and play golf, take them to Gentlemen's clubs, and steak dinners.

The agents that develop relationships with REO decision makers are ones that first work up the ranks on a team where the lead agent has developed these relationships.

If your a budding agent trying to get your foot in the REO door, stop doing BPOs from facilitators. Join successful REO teams and do high-quality responsible work.

If your doing BPOs to pay the bills, then DO YOUR JOB! Be reponsible and realize a bad BPO does no help the market. And stop telling everyone your doing BPOs to develop your REO career.

I have nothing against agents. We are all trying to do our jobs and make a buck.

Investors:

Look no further than the name Broker's Price Opinion with the keyword being opinion. Four weeks of night school a test and a few our of training and your opinion suddenly means something? I have never ever ever received a good BPO. I plan to get hosed on the BPO every single time. You should rely on influencing the BPO instead focus on trying to discredit it. This is done independently of the results using third party support. If the loss mitigator believes the BPO is inaccurate or provides misinformation, then they will be more likely to use your comps and support in place of the agents.

Example: A couple of months ago, I met a BPO agent at a property and gave her my handpicked comps (of distressed properties), a copy of a home inspection report, and repair estimates. I showed her how the previous owners had taken 3 bedroom 1 bath and concerted it into a 1 bedroom 1 bath. There was not one single comp with a 1/1 SFR in a five mile radius. I tried to tell her she will need to take similar sized properties ( 3/1) and reduce the cost to return it back.

Two weeks later I get a call from the lender telling me the BPO came back at $95K. Two of the sold comps were 4 bedroom 2 baths and one was a 3/2.

I pointed out to the negotiator the poor comparisons. I also pointed out the fact the agent lived two blocks away.

Well, I was able to negotiate a $66K PP and I am in the process of fixing and flipping.

The lesson I learned from this BPO is sometimes a horrible BPO does work.