Does list price effect BPO?

[Jason Wyrick]

I'm curious if the list price effects the BPO agent. My agent lists the price high on MLS when I first get him the short sale. Once appraisals and BPO's are done he relists it with me as the seller and we start to drop the price when we have a better idea what the lender will take. I'm just not sure if that early listing price is effecting the BPO?

[Mike C]

Jason,

You said†With the low listing price what if you get an offer and you have no idea what the bank might accept.â€

What the bank will accept on a short sale is entirely decided by the guidelines of whoever holds the paper. In most cases, it will be Freddie, Fannie, or FHA. They will follow the guidelines which tell them how much they can accept (80-91% of BPO value for the most part). Most banks are just servicers for the investor (see the big 3 above) that hold the paper. The only general exception to this would be if you stumbled across a loan originated and kept on the books by a bank or credit union (of any size). Then they could do whatever they wanted but this part of the market is very small (less than 5%) of all outstanding loans.

Most are originated and sold in pools to the big 3 investors. I hope this makes sense to you. Getting some specific help from either Justin or Nick (and in your area) you will find very helpful if they have the time. I don’t really mess with the default area myself (or really like it to honest) but it is where I started.

Having said that, there are many ways to success in RE so find what you like and make it work for you. One area isn't necessarily better than another, just different. It is all about what you prefer.

Best of luck


Mike C