BPO's vs REO Appraisals

[Greg Bell]

HUD orders BPO'S and Appraisals for their REO'S.Most BPO'S are so far off I wonder why they even bother.Many are way over value because of serious condition problems not taken into consideration.We do a comprehensive inspection of the subject property.Why not just price the REO'S with BPO'S ?because they would never sell at The suggested value.....

 

[Deuce of Spades]

I have done several REOs in the last couple of weeks; when the 'review' of the appraisal comes back, it is often listing that the BPO was inflated and that the real estate agent did not report any of the deferred maintenance that I noted.

I also have been working on picking up more REO clients and am being told that they only use BPOs. Very scary

 

[Karl]

Due to the infiltration of Non Qualified people that have become Appraisers recently can U actually Blame anyone for starting out with a BPO in todays market?? Sorry but I can't!! There are so many over inflated homes that IF the Appraiser that actually did the first Appraisal was to get the REO he'd have NO choice BUT to overinflate the REO. And I think the LENDERS are actually tryiing to protect some Appraiserrs by using REO's cause the Appraiser would have to TRY explaining WHY the home was worth so much more last year.

 

[Soapbox Kimmie]

Maybe lenders don't want to know what the real value is

In many instances, the lenders seem to have a vested interest in NOT having appraiser's get into doing the appraisals of the foreclosed properties. If the appraisers tell what the real value is, this can show the real declines in values, which are significantly more than "the powers that be" would like to see revealed at this time. In other words, taking the properties and giving them to realtors for BPO's and resale at unrealistic list prices, will help to sustain the markets for some lenders, who want to continue to do business. Once appraisers come into the mix and give real values, and mark the "declining box" when appropriate, then the lenders will be faced with the truth of the state of the market coming out more in the media, "redlining" in declining markets, etc., falling stock prices, sluggish economy, recession,etc..

I think that there is an effort to hold it all together until after the next election. This will give many CEO's and the like just enough time to sell off stocks and transition out slowly without drawing too much attention to themselves. Anyone else agree???