BPO Problems With Fannie Mae Backed Loans
March 2, 2011 / /
http://shortsalepowerhour.com
Fred and Kevin discuss BPO issues with Fannie Mae owned loans. There is a notable increase over the last few months.
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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.
YES! We received a call for a FannieMa BPO from a REO agent that has 20 FannieMa REO listings and amitted that he did the BPO’s on ALL of them. WE turned him down and LPS called us and we asked for a BPO agent that does not take REO listings. We got an appraisal instead of a BPO. Turn them down it can be done!
Hi Guys, definately a big pain on the Fannie loans. Just got another one $50K high on a $270k property. I agree with Rick….conflict of interest.
Any connection with particular servicer? Just had BPOs done in the last 2 weeks on FNM loans on 4 different files, with LBPS, Citi, and BofA. All were completed through Old Republic (They only pay $45 to do a Full Interior BPO). All of mine came in at or very near my list price. All 4 of these agents have sold an average of only 1 Home Per Year! Some have sold NONE.
I too have denied some BPO agents that are also REO listing agents. You will probably receive a call asking you why you denied them, but they most certainly have a conflict of interest.
I always take the key from the lock box and have denied access to certain agents who always blow the BPO out of the water because they think they will get the listing if it goes to foreclosure
I have repeatedly had problems with Freddie Mac, not Fannie Mae. On at least 3 different Freddie Mac files they have demanded $20-40,000 MORE than the BPO value. Initially, I thought my BPOs were coming in too high but I have since learned that Freddie Mac has a “BPO reconciliation department” that supposedly reviews the comps and adjusts the BPO value??? (Most of my BPOs are completed by someone that I know and trust and he does not list REOs. He is considered by many vendors to be one of the fastest and most accurate BPO agents in this MLS)
Twice, I have confronted the servicers (BofA & Aurora) about this issue and both times I was told that Freddie Mac had reviewed and adjusted the BPO value and believed that they could sell for more after foreclosure. Both of those properties are currently listed as REO’s for less than the short sale offers. I am still fighting for approval of the 3rd.