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Hackney71
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Joined: 08 Nov 2007
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Location: Nashville

Re: mortgage lenders reporting losses
PostPosted: Fri Jan 18, 2008 7:41 pm Reply with quoteBack to top

billddrummer wrote:

How do your BPOs compare with market?


Not sure what you are asking?

A BPO is ordered through one of several companies who recruit Realtors (it was supposed to be the Actual Broker at the head of the Real Estate Firm, hence the name; but, it turns out they don't want to work for what was being offered). A BPO contains interior and exterior photos, three listing comps, and three sold comps...

So, it is the market...

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billddrummer
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Joined: 06 Aug 2007
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Location: Reno, NV

Re: mortgage lenders reporting losses
PostPosted: Fri Jan 18, 2008 9:17 pm Reply with quoteBack to top

Hackney71 wrote:
billddrummer wrote:

How do your BPOs compare with market?


Not sure what you are asking?

A BPO is ordered through one of several companies who recruit Realtors (it was supposed to be the Actual Broker at the head of the Real Estate Firm, hence the name; but, it turns out they don't want to work for what was being offered). A BPO contains interior and exterior photos, three listing comps, and three sold comps...

So, it is the market...


I'm sorry, I should have rephrased the question. What I should have said is this: How close does the BPO come to the actual sale price of the property?

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Hackney71
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Location: Nashville

Re: mortgage lenders reporting losses
PostPosted: Fri Jan 18, 2008 10:50 pm Reply with quoteBack to top

billddrummer wrote:
I'm sorry, I should have rephrased the question. What I should have said is this: How close does the BPO come to the actual sale price of the property?


Ahhh, Well the BPO's are done by realtors that are slightly optimistic and they are giving us a "Retail price"... With that said, I do know that we have worked out "short sales" and as the DOM goes up our price goes down until its sold... Sometime we lose our shorts, usually due to higher than normal LTV on the loan and the borrower dies...(I am not joking) remember WE CAN NOT discriminate when a 95 year old asks for a cash out refi with a 30 years am EVEN when "capacity to repay" comes in at that point???

Here is an example how One bank might sell REOs without tying it publically to their ballance sheet:
http://www.ahcproperties.com/

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billddrummer
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Re: mortgage lenders reporting losses
PostPosted: Fri Jan 18, 2008 11:45 pm Reply with quoteBack to top

Hackney71 wrote:
billddrummer wrote:
I'm sorry, I should have rephrased the question. What I should have said is this: How close does the BPO come to the actual sale price of the property?


Ahhh, Well the BPO's are done by realtors that are slightly optimistic and they are giving us a "Retail price"... With that said, I do know that we have worked out "short sales" and as the DOM goes up our price goes down until its sold... Sometime we lose our shorts, usually due to higher than normal LTV on the loan and the borrower dies...(I am not joking) remember WE CAN NOT discriminate when a 95 year old asks for a cash out refi with a 30 years am EVEN when "capacity to repay" comes in at that point???

Here is an example how One bank might sell REOs without tying it publically to their ballance sheet:
http://www.ahcproperties.com/


That's what I was getting at earlier. The 'values' that are set are artificially high because realtors set them from the existing market. The problem is, with a vacant home, usually in need of maintenance, the true 'value' bears little or no relation to the BPO-derived number.

Case in point: Appraisal says $290,000. Mortgage is $232,000. House repoed and BPO value pegged at $203,000. No bids. House needs $30,000 worth of work. Sits on bank's balance sheet for 5 months.

What's the place worth? To an investor, it's the $203,000 less the $30,000 less 5 months worth of sitting on the market--say $5000.

Maximum $168,000. Which is 42% lower than the appraisal, and 17% below the BPO number.

By the way, that's the house I used to own.

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icenvegas
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Joined: 22 Nov 2007
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Re: mortgage lenders reporting losses
PostPosted: Sat Jan 19, 2008 12:05 am Reply with quoteBack to top

Bill.. is this you??

Image

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billddrummer
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Location: Reno, NV

Re: mortgage lenders reporting losses
PostPosted: Sat Jan 19, 2008 12:18 am Reply with quoteBack to top

icenvegas wrote:
Bill.. is this you??

Image


Nope. I'm black.

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icenvegas
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Re: mortgage lenders reporting losses
PostPosted: Sat Jan 19, 2008 12:23 am Reply with quoteBack to top

the 30K in repairs made me ask

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billddrummer
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Location: Reno, NV

Re: mortgage lenders reporting losses
PostPosted: Sat Jan 19, 2008 12:28 am Reply with quoteBack to top

icenvegas wrote:
the 30K in repairs made me ask


Deferred maintenance. It's an 18-year old house, and it needed some cosmetic repairs, carpeting, linoleum, garage door replacement, appliances, landscaping and some other stuff.

The reason I picked $30,000 is because that's how much I should have injected to the property in the previous 10 years, but didn't. Major systems were OK (foundation, roof, flooring, plumbing/electrical, wall integrity).

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Hackney71
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Location: Nashville

Re: mortgage lenders reporting losses
PostPosted: Sun Jan 20, 2008 4:56 am Reply with quoteBack to top

billddrummer wrote:
What's the place worth? To an investor, it's the $203,000 less the $30,000 less 5 months worth of sitting on the market--say $5000.Maximum $168,000. Which is 42% lower than the appraisal, and 17% below the BPO number.


$168k might be a great number to offer in a "shortsale" up front... Wink

Why the F*ck do they take the meter???? so they won't be charged for current month bill???
WTF...

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sless
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Joined: 19 Dec 2007
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Re: mortgage lenders reporting losses
PostPosted: Tue Jan 22, 2008 8:10 am Reply with quoteBack to top

[quote="billddrummer"]
sa wrote:

However, several times during that post he mentions "trenches." The term is "tranches," from French meaning "slices." If you want to impress us, get the words right!


Oh, now that is embarrassing. I had the same problem in my first year of law school, i kept writing statues instead of statutes...i should really proof read better.
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