BPO Problems With Lenders Will Remain
Kevin and Fred, the leaders of Group 46:10, Arizona’s foremost short sale squad, are talking today about pricing and listing. Before you shut the video off because you already know how to list and price, hear them out. Depending on your market, you may not be experiencing the same stuff as Kevin and Fred are in Scottsdale. As many of you know, the deadline for taking advantage of the tax credit has passed. What we are seeing right now in the market is a little bit less enthusiasm from home buyers and house owners. The supply is starting to grow and that usually leads to prices going down. When you see that trend, you tend to have more disagreements with banks concerning the value of properties.
There are lots of of the same obstacles in 2010 that we had in 2008. Banks love to look at sold comparisons. However, if you want to deal with the variation in the market you need to compare values with active and pending listings. Price yourself in front of the market if you want to sell the house.
At present, the BPO’s are coming back higher than what they should be in Kevin and Fred’s opinions. There have been discussions with Chase bank where they have upped the BPO price because they disagree with the BPO agent’s number.
It is important to understand that there will be more BPO problems in 2010. Other parts of the country may not experience these problems if your market has only depreciated 10-15%. Nevertheless, in the Phoenix real estate market, with depreciation levels approaching 60-70% in some cases, there will be BPO issues.
The lender will possibly make some errors and foreclose on some houses. Do not be surprised if it takes them a while to correct their own practices through this change in the market.
Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona
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