Earnest Money Deposit
Earnest Money Deposit When putting an offer on a home, you will be required to deposit earnest money after getting an accepted offer. This deposit
I have been working on a Short Sale with Chase that is backed by Fannie Mae. BPO value disputes are something they are equipped to handle.
The offer that we submitted was was countered by about $20,000 over actual value by Chase/Fannie Mae on a property that is only worth about $165,000. We were told that the reason for the counter offer amount was the BPO Value that was provided to them. The BPO value offered by this agent was wrong, and I instantly knew that I had a big problem. BPO values can be determined by any Real Estate Agent that applies to complete the work. Just because they are doing the work, it does not necessarily mean they are good at it, or that their determinations are accurate.
I email my negotiator and tell them I would like to dispute the BPO value that they have. I complete hundreds of BPO’s and I know my values. To my surprise, my negotiator told me that I can go to www.homepath.com if I have a BPO value dispute and initiate a BPO value dispute.
You click on the Short Sale Tab. When the new page comes up scroll down and click the follow their instructions.
You enter your contact information, your Seller’s loan number and upload an authorization letter there was another drop down menu where you selected “I want to contest a value that Fannie Mae has assigned to a listed property”. You enter the Servicer Information and the Gross Offer Amount received. You can upload comparable sales and active properties and a listing history of the subject property. Hit the submit button, and that is it.
I received an email from Homepath confirming receipt of my BPO value dispute, letting me know that they will try to respond to me within 72 business hours. They assigned a number to the BPO value dispute. I then forwarded the dispute number to my negotiator. She said if she has the value dispute number she can check on it.
Less than a week later, I received an email from my negotiator indicating that Fannie Mae agreed with my BPO value dispute valuation, and the offer was sent to the investor for approval. It took about a week after that, and I received the formal approval for my $165K offer.
If you have experienced a case where a BPO Agent has overvalued your property and it can cost your Seller the ability to short sale, this is a BPO Value dispute method that is effective on Fannie Mae backed mortgages.
I suspect some agents just hit the dispute property value button but do not supply documentation to support the adjusted value. You must argue your assertion, they will not just order another BPO to see if you are right, they expect you to provide them with evidence that their valuation is wrong. In my case, they took my complete BPO and just agreed. If you do not do BPO’s, you might consider enlisting an agent who does to help you in this dispute. An incorrect valuation will cost you and your Client the ability to close a short sale.
I was glad to see that this is an option to Fannie Mae backed loans. My Clients and I would have been in a world of hurt if this information was not shared with me from my negotiator.
BPO values can be determined by any Real Estate Agent that applies to complete the work. Just because they are doing the work, it does not necessarily mean they are good at it, or that their determinations are accurate.
Thank you for sharing!
Earnest Money Deposit When putting an offer on a home, you will be required to deposit earnest money after getting an accepted offer. This deposit
Real Estate Listing Agreement Types Real Estate Listing Agreement Below are some of the standard Real Estate Listing Agreement types that are available with your
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Real Estate Forums Ask and answer questions, share ideas, offer feedback or encouragement Join the Conversation Ask, Answer, Vent Submit an Article Submit you unique
Real Estate Forums Ask and answer questions, share ideas, offer feedback or encouragement Join the Conversation Ask, Answer, Vent Submit an Article Submit you unique