38 BPOs in 3 days, No Problem.

[panappr]

Just reporting some facts

I am with a real estate agent as I am typing this, and she is pretty astounded to here that she just received 36 BPO assignments from a LARGE AMC to be done in 72 hours for a large lender/client that has recently been under fire. She is frantic at the moment and is trying to compose herself so she can start downloading and begin processing them. Fee = $38.00 per assignment.

I wouldn't believe this if I was not looking at it with my own eyes, however, I am looking at the BPO form 3 pages and pretty detailed. I've never seen one before, but it requires 3 sales and 3 listings, no adjustments, but lots of information. Which also includes comments on Subject condition, housing supply, number of listings, number of house in direct competition, average marketing time for comparables, market conditions with percent of monthly depreciation of appreciation, and market data comments. Also asks for 3 estimates of value "as-is High", "as-is Low", and "suggested listing Price", as well as repaired value if necessary.

How is this humanly possible, and what kind of quality could you expect, and most importantly how reliable will any of the information be. And what are they using this information for!!!! I would have a hard time concentrating on 1 or 2 in a 72 hour period.

This has to be the most pathetic situation I have ever seen.

She said she once did 72 in about a week and a half. Like this is no big deal.

Now, she just asked me "what does above grade mean"?

 

[Randolph Kinney]

Now you know the lender's true concern; fast and cheap!

 

[Blueprint]

Sign me up for that one.

Tell her that "above grade" means that the property, as a whole, must rank as an A or B in her books. Anything she percieves to be a C, D or F property is considered to be "below grade".

 

[Roy Courtney]

I personally think this type of situation could end up to be good for us. These major lenders are turning their stock values from $35.00+/- per share into $1.50+/- per share it could cause "some" concern for the investors. For example if you had invested 1 million dollars into each of Washington Mutual, National City and Indymac at their high for the year you would now have: WM = $150,939.13; NCC = $148,757.94; and IMB = $42,836.04. So a $3,000,000. investment would now be worth $342,533.11 minus broker commissions (ha ha). You lost $2,657,466.89 just on these three stocks alone! But, don't worry you can make it up on using BPO's, AVMs, etc. instead of real appraisals! Maybe some of the "real" investors will grow tired of this crap!

 

[Lee Lansford]

...Maybe some of the "real" investors will grow tired of this crap!

If only the majority of APPRAISALS did not fit into that category, we WOULD all be better off.

 

[The Warrior Monk]

One of the agents in the office was offered $45 for a BPO. He looked at what was required, and negotiated a fee of about $300. Even still, he decided that fee wasn't sufficient for the time and work required, and never did another.

 

[Blueprint]

One of the agents in the office was offered $45 for a BPO. He looked at what was required, and negotiated a fee of about $300. Even still, he decided that fee wasn't sufficient for the time and work required, and never did another.

The masses of agents won't do what this agent did. Hopefully the masses will get thrown in the gutter over the next few years. The intelligent common sensors will persevere.

 

[Bama Bayou]

If only the majority of APPRAISALS did not fit into that category, we WOULD all be better off.

Excellent point, but maybe, just maybe, the flight to quality will begin.

 

[RSW]

Tell the agent that above grade is a quality rating.

 

[Workbox]

I am enjoying my weekends.