I got a customer, he lives in Oxnard, CA, He bought this property in Nov, 2005 for $569k 100% finance 80/20 loan. First loan $455,200 second $113,800 both loans are with Wells Fargo. Now he’s behind payments and the delinquent amount is $18,000. Last May, 30 He received the NOD (Notice of Default).I was checking the comps and the fair market value is $450,000, besides the property needs more than a TLC, I don’t say mayor work but I need to spend at least $15,000 in repairs. My question is in order for me to do a buy/fix/sell I need to buy it for $370,000 to $380,000. Do you think the lender can give me that discount? What is a good strategy you can recomend me. Thank you
Submit your offer at $350k. When the bank orders the BPO (Broker Price Opinion) make sure you meet the broker at the property with proof of everything you mentioned here and “help” him/her establish the value at $450k. If you do that you should not have a problem with the bank accepting your $350k offer. They may want a little more but you can give a little more since your target is $370-$380k. Good luck.
that’s a good one, thank you for the advice
the BPO (Broker Price Opinion) is sent by the bank to check the property?
The BPO is ordered by the bank to establish value. They usually accept about 80% of the BPO.