The Short Sale BPO Agent Evaluation Model and Perspective - Everything You Thought You Knew

It is good to understand the general perspective of the agent conducting a BPO. Did you know the BPO Agent usually only makes $40-50 for each BPO the lender orders? Consider that for a moment. The BPO Agent has to drive out to property, spend 30 minutes or more inspecting it, take 10-20 pictures, drive back to their office (which many work from home), spend ANOTHER two-three hours putting together all the data they collected and uploading the pictures and information to company the lender used to order the BPO. All of that work for $40-50 buckos. The reality is the BPO Agents do not make any money if they have to spend A LOT OF TIME with one BPO. They have to burn thru as many BPO’s as possible to at least make a few hundred bucks every two weeks. This doesn’t mean they do not do a good job conducting one. In my opinion they are simply not motivated enough to spend the required time to produce an accurate value on the property every time. Hence, here is where investors can make more profit.

Many banks typically are not looking at just one property when they consider a short sale transaction. They are considering the entire portfolio and YOUR property may be .25% of a 50-100 million dollar portfolio. Banks for the most part do not make time or spend enough money to really care if they lose MORE on ONE house than what it is worth. They spend as little as possible to have some type of paper trail to present to their superiors and Senior Lender/Credit Officers, so they can sign off for compliance with standard operating procedures for the short sale approval. The incredible part of their story is this. Even though banks spend as little as possible to obtain a value on a property and short sale it when a Loss Mitigator writes a letter of recommendation. They still SAVE MORE MONEY by accepting short sales and not let their properties go into foreclosure and complete the auction process. Can you believe that? With all the mistakes and lack of due diligence on THEIR part…they STILL SAVE MONEY! That is astounding to me, but hey… it still makes great opportunities to profit in short sales. …so carry on with the bad habits banks….carry on.

Here are the basic factors that are considered in a BPO for the lender.

• What is the condition of the property?
• What have similar properties in the area sold for on the MLS?
• What does the home need to be sold in 90 days or less?

Serve One Another Better,

Cory Boatright
Loss Mitigation Specialist
http://www.shortsalefundamentals.com

http://www.shortsalefundamentals.com/about-us.html

Cory has become an accomplished National Speaker, Trainer, Writer, Radio Host, Private Consultant and Musician. He also serves on the Board of Directors of a local landlord and property investor association called Millionaire Possibilities (MPREIA). He has been published in the Wall Street Journal for his successful business aptitude and has been truly blessed to pursue real estate as a full-time investor and Loss Mitigation Specialist. He and his wife (also his business partner) own several companies, including a Nationwide Loss Mitigation and Short Sale Company with a team of 4 full-time Debt Negotiators, have bought and sold millions of dollars in single family residences, duplexes, commercial property and land, continue to buy and hold properties for long term wealth planning and network with investors across the country. At the age of 31, the biggest lesson he has learned in his journey is this. “Be a solutions provider by asking how you can serve one another better. The rewards of servanthood are invaluable”- Cory Boatright

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