Movement on the house!

5 Oct

My latest post was a bit deceiving – I really put an offer in 3 weeks ago.  I thought those 3 weeks were nerve-wracking – but it has nothing on how I feel today!  I heard from my agent (who is amazing by the way, and if anyone needs a good agent, I will happily send him your way).  The BPO (Broker’s Price Opinion) was has been completed.  This is an extra step, a very important extra step, in the short sale process.  Let’s take a step back…

Short Sale – when the seller is selling a property for less than they owe – essentially, selling an upside-down loan.  A seller’s “last chance” at selling the house before claiming bankruptcy and going into foreclosure on a property.  This protects the seller’s credit score and avoids a bankruptcy on their records.  This also usually offers the buyer a better than average price.  Though short sales are time sensitive (must be closed prior to foreclosure date), they can take weeks to months to a year.  I’ve been told that market average in Northern Virginia is 2-4 months.

Process (or so I understand it to be) – Seller lists house, documents each price, each price drop, traffic through the house and # of offers at each price.  Potential puts in an offer.  Seller counters or ratified contract.  Seller’s agent puts together a package of info including offer, special short sale paperwork and previously stated documents.  Bank then usually sits on this info for a month or two (which doesn’t seem to be my case).  Bank sends an agent, not an appraiser, to see property in its current condition and offers a “fair” market value, aka BPO.  Bank then compares BPO, offer, amount left on seller’s loan.  Bank either approves or counters – deal is made. 

When I found out today that the bank was actually actively working on my case, I almost threw up!  This is getting pretty real.  Crossing my fingers that this works out!  Guess I could start entertaining the idea of paint colors now?

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