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Friday, July 06, 2012

Short Sales - Do BPOs always present a true picture to the lender?

The answer is obvious – a great big NO.

As a real estate agent who has completed many BPOs I know there are conditions and issues with properties I can’t document or even see.

The power may be off so if there is an electrical issue or even a non-functioning air conditioner, I would never know.  This could impact the selling price by thousands.

There may be a slow leak or other issues with the roof but if there is no active leak or evidence of a leak, how would I know?  Again, if there is a problem, thousands of more dollars off the selling price.

And the poolcould it have a problem with the pumping equipment or a leak, or need to be resurfaced?  Potentially thousands here as well.

Another guideline I see referenced in the BPO process…assume the interior repairs/condition from the age and exterior.  I guess if the exterior is neglected the assumption is going to be the interior condition is similar.  But what if the exterior is nice and the interior is suffering?  You know what they say about assumptions….

When a short sale is involved it seems only obvious – the seller (seller’s agent) must make sure the lender knows the true condition because the BPO may be way off!

If you are considering a short sale in Brevard County, Florida, call or send me an email if I can answer any of your question.

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