I had a client today asking about what a “BPO” is. BPO stands for ‘Brokers Price Opinion’ and it is what banks use to find the value of a property that they are considering granting a short sale to.
A bank will hire a third party licensed real estate agent to do either a ‘interior Brokers Price Opinion” or an “Exterior Brokers Price Opinion”. An exterior brokers price opinion is generally used by a bank in the beginning stage of a short sale or a default. An Interior Brokers Price Opinion is used for when a bank is reviewing a file to accept a short sale.
The bank uses these Brokers Price Opinions to make sure that they are getting market value for their home and no bank will approve a short sale without one.
Short Sales are the most complicated Real Estate transactions and most banks actually require that a home be listed by a real estate agent in order to grant the short sale. A short sale is used by a homeowner that is in distress and can no longer pay their mortgage and are facing foreclosure. The effects of a foreclosure will last a lifetime while a short sale will have a homeowners credit back to where it was before within 3 years. Should you or anyone you know facing difficulty paying their mortgage, then let them know they have options. Give Jeffrey Chubb of RE/MAX SELECT a call at 617-480-2600 or email him at Jeff@MoveWithChubb.com or visit his website that has been tailored to answer foreclosure questions at www.MAAvoidForeclosure.com