Drive-by BPO or interior BPO ???

OK here’s the deal.

Got a house under contract I am trying to short sale. 1st position wants to do an interior BPO. The home is in good condition and would sell in the open market for every bit of what the 1st is owed. They have done a drive-by BPO and said my initial offer was to low. They now want an interior. My fear is that the interior will blow me out of this deal.

Should I let the interior happen or just go on the drive-by value, which I do not know.
I have had very little success thus far influencing the BPO’s I have attended. All of the agents seem to have their minds made up as to what the value is. My guess would be that if the BPO does not happen they will just go off the the drive-by value. My hope would be that if they do an interior the agent would subtract any defaults from his drive-by valuation.

Well I guess I will answer my own question. I have scheduled the interior. Figured I will just picth my best and hope for the best. I’ll let you all know if it works out or not. Replies still welcome.

Well The interior was conducted today and it seemed to go very well. Right after I introduced myself to the BPO agent she asked what are you looking for the numbers to come in at and if I can come to that number I will help. She then asked me to point out all of the defaults I could so she could photo and document them. This was the best BPO I have attended. Much better than the BPO I was at last month where the agent ripped me a new a-hole, I think it was personal. I took an almost 2 hour lashing trying to plead my point. I will say that I may have gotten through to her as the lender tells me she never submitted the interior so they went off of the drive-by less 10%. This works for me.

If you can provdie low copms to the BPO agent. That should help them out.

Just wanted to give an update.
A few days after the Interior I called the lender up to see if my offer was still to low and how much they wanted. They said “we are looking for fair market value”. So last week I submitted a new offer(105k). This number was still below the ARV*.70- repairs formula. Within 30 minutes of faxing the new offer I got a call saying my offer was in line with the fair market value and they would be getting back to me next week with the details.
I think/know that BPO agent really helped me out. This home needs nothing more than a cleaning, some caulk around the fixtures and other small cosmetics. All new windows,roof, and mechanicals were put in in 2005. ARV is 155k-165k in under 30 days market time.
My plan is to lease/option for 175k. My thought is with the subprime arena clearing out and loans becoming harder to get at for certain buyers it will be very easy to sell this or any home via owner finanacing.

In my excitement I forgot the moral of my story. If you can, always go for an interior BPO.
As I stated before I had one last month that I felt went terrible. I made my best pitch and presented all of my comps and in the end she reamed me for my low offer. She said “keep it, I’m not even going to look at that”, referring to my comps. I thought I had no chance. Fast forward to now and that lender tells me the report never came in and they will be going by the drive-by (-) 10%, which suits me fine.
This BPO was completely different. She asked what numbers I was looking for and said she would help if she could. I gave her my comps which she genuinely seemed to appreciate and those numbers were inline with my offer.

The BPO is your best chance at affecting the price. Come prepared and make your best pitch.

Thanks for the tips and updates.
I have my 1st BPO meeting later this week. I have all my comps, home inspection and repair estimates ready…
Shaun Greer, Boise, ID

If you think it doesn’t come in fair…

GET AN APPRAISIAL done and send it to the bank!!!

Why depend on guess work.
If you know your loan product then you would know the guide lines to their discounts.
Why guess when the guide lines are there.
You’ll find when you know what the numbers are your success rate will double over night.