Profile picture for rajsrivarsh

Short sale BPO expired

I was waiting on a shortsale approval (almost 6 months) and was recently informed by my realtor that the BPO has expired and the banks are going to redo that. At this stage, will the banks restart the entire short sale approval process with the new BPO or will they just use the new one just as a reference and continue where they had left earlier (before the got expired)

  • April 05 2011 - Ahwatukee Foothills
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Answers (9)

Best Answer

Profile picture for Jim Brown1
I've never seen a bank require the entire process to start over because a BPO expired.  They'll just order a new BPO.  However, there may be other expired documents that need to be updated as well since the file is so old. 
  • April 05 2011
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If the new BPO is appreciably different (either high or low) the bank will ask the person that performed the BPO to explain the discrepancy.

Hopefully they will take into account your appraisal as an appraisal is truly a better benchmark of the value of the home.
  • February 19 2012
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Profile picture for user51750
But I have appraisal report from my lender also, that value and approval from bank value was same and the report is 20 days old and valid up to 90 to 120 days. so 99% it could be same. correct?
  • February 19 2012
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It could. It would really depend on how comparable properties have fared on the market. If you are in the northern half of the U.S. my guess is the prices have not appreciably risen as home values tend to fall or remain flat in the winter.
  • February 19 2012
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Profile picture for user51750
I am also in same situation. We got the approval on the home and at the closing day we get to know by Realtor that BPO got expired. My question for you, by getting new BPO will it change selling value as compare to what we got in approval latter from bank?
  • February 19 2012
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Profile picture for rajsrivarsh
Finally got my approval.Bank just ordered the new BPO for their reference...Thanks everyone for your valuable informations which really helped me in this situation..
  • April 07 2011
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A short sale is done on a case by case basis. Each individual home and owner situation will be handled accordingly. In some cases, the whole process will be started completely over for any missing or expired piece. There are too many variables to tell how any one short sale will play out. There's no use trying to predict what is going to happen. Consult with your realtor and most importantly the lender(s) who's involved with that decision.

You may even want to consult with a real estate attorney in case there's legal matters that come up as well. A realtor is not licensed for legal advice.
  • April 05 2011
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Depends on the bank, the investor and the bank's negotiator. Last Short Sale I sold, the BPO expired and the bank just scheduled a new one and worked off that. That did not start over the process. It can, however, sometimes take a couple of weeks for the BPO to be arranged. Ask your agent what the bank's response was in this case.
  • April 05 2011
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They will probably start the process all over again. When a file is not in compliance (whether its the applicants fault or not) it is sent to the back of the line. This is also why its important that you have a good mortgage broker who ensures that your file IS complete.
  • April 05 2011
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