Freddie, BPO Agents, And Short Sales
October 27, 2010 / /
http://kevinandfred.com/power-hour/freddie-mac/
Fred has some heated words for a BPO agent that may or may not be capable of doing his job adequately.
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About the Authors
Kevin Kauffman & Fred Weaver
Kevin and Fred the founders of Group 46:10. Over the last 10 years Kevin and Fred, and their team have closed tens of millions in real estate all over the country and have created some of the best training for agents in the market. Kevin and Fred are also highly sought after teachers whose work has helped agents all over the country build their own next level real estate business.
“Eeeeeeek, I’m melting, I’m melllltinggggg”…..heard coming from the lofty tower of the CEO of Freddie Mac. The onlooking monkeys are all mumbling to each other, “All hail Fred & Kevin! All hail Group 4610! They have thrown buckets of light on this subject of “value” and now things will change! All hail Group 4610!”
Amazing…but not uncommon. We had a WF BPO agent from another COUNTY…do a BPO on the WRONG house…so 1 week later, the bpo came in 25k more than similar sales/active. You can build a brand new house in the subdivision for $10k over my offer $15k under their BPO value. Another time the BPO agent hired a photographer, then had his brother do the BPO…I disputed it and they said so sorry.
I had a guy that used to work at a Health Maintence Organization do a Brokers Price Opinion on a house that looks like a space ship. That was a mess!
What did i learn?
Never let an agent from an HMO do a BPO on your UFO.
Had a BPO agent on 1/2 duplex (single family attached 3/2/2) use 2 comps that were 4 bedroom 3 baths 2 car garage with in ground pools in a gated luxury community as comps. MORONIC. I gave the BPO agent comps and she did not use them. She was from another county, no clue about this market. I called her broker and asked for their EO insurance company name and account number so the seller could file a complaint.
I’m not shocked that BPO quality keeps declining. Many of the companies have cut the fees so much that you actually will lose money trying to do their BPO’S.
We have went from doing hundreds of BPO’s a Month to about 50 because we wont do them for $20. This actually makes me upset because it is the same situation we got in to back in 04 and 05 when everyone was a Realtor and all you had to do to get business was do it for the lowest price, Not because you had more skill of knowledge then the next agent.
I run in to so called BPO agents who are less than knowledgeable are are tainting this end of the business.
OK I am going to stop I think I need to write an article on this and will post a link because I have so much more to say.
Thanks guy’s keep sharing.
guys this one is so timely. I’ve had a horrible experience with Arvest Bank (owned by Walmart) and again the investor was Freddie. I disputed and challenged the BPO, escalated the file and copied Freddie Mac on the emails and it still fell on deaf ears. The negotiator assigned to the file and her immediate supervisor showed no willingness to do the right thing and sadly over a questionably incompetent BPO my home sellers find their home auctioned at the Trustee Sale this past Monday.
What makes this so disgusting is that this file has been one that we have been working since January of this year, and we lost 2 buyers earlier due to the bank’s red tape. We did get approval both times and from both lien holders, but both previous buyers dropped out of the game after receiving the letters because they felt their offer and the value at the time of the approval had declined.
Then the most recent buyer came to us and said hey we’re tired of waiting please tell the bank that we’re dropping our offer by 5k if they still want to do this. That resulted in a new BPO and honestly I don’t think that agent ever visited the property or knew anything about the area because their BPO came in at 11k above the sold comps in the subdivision and 6k over our offer!
When that property gets re-listed on the mkt as an REO this bank is going to net at least 20k below what that last BPO came in at if not lower. I can’t fathom the wisdom behind those numbers!!!!
Thanks Fred and Kevin – that was the best tip for the day re: owners of the REOs.
The icing on the cake would be to find out that the bogus BPO agent was also the listing agent for Freddie Mac! Way to go, contest those BPOs.