Get my own BPO??

Foreclosures, Short Sales, Tax Foreclosures
1

Good Morning all,

I am working on a shortsale with EMC Mortgage. I had two questions regarding the items requested by them.

My EMC request letter says that it needs…

BROKERS PRICE OPINION of the subject property, which lists comparable listings and sales(usually provided by your realtor)
Well, the woman that I am working with does not have a realtor which brings me to my next question…

  1. Do some lenders want you to get the BPO done for them?

  2. She is not currently listing the home, but they have requested a listing agreement. How can I get around having to show a listing agreement?

Thanks for the help.

Gregg, Tucson.AZ

2

  1. Nothing unusual

  2. Read this thread http://www.reiclub.com/forums/index.php/topic,24333.0.html

3

Thanks for that thread JDS-great info.

I misspoke on py previous posts. She is actually listing the propoerty with Liberty Mutual. I have never had to work with RE agents on shortsales, so am wondering how I should proceed with this.

What is the best way to work a shortsale with another agent listing the property? Am I going to have to offer a cut of the deal-and if so how do people typially structure this, who gets what?

Somebody with experience working SS with agents, please let me know what you think.- GRegg

4

The listing agent should be able to provide you with the BPO. Because the property is listed with a broker, that real estate company will be the one interfacing with the lender. You provide the information to the broker and he takes it to the lender. You don’t have to cut anyone in on the deal. The broker gets a commission from the sale. In most states it would be illegal for the broker to recieve any compensation from anyone other than his principal (the seller).

5

Or just let the listing agreement expire, depends how much time you’ve got, and how much commission you’re prepared to lose off the top of your deal.

Typically, a short sale doesn’t have enough equity for anyone to make a commission.

6

A short sale doesn’t have any equity at all - or it wouldn’t be a short sale. If there was equity in the property the seller would sell it and pay off the lender. Commissions are not paid from equity, they are paid by the lender as a cost of business. Generally, a lender will pay between 4%-5% to be split between the listing broker and the selling broker. Remember, when you are in a short sale the deal is between the new buyer and the lender - not the owner.

7

You can short sale with up to about 10% equity, because the commissions, closing costs, etc, eat up that 10%.