Q: My client’s lender has set an unreasonably high price for their short sale. Do I have any recourse?
Anders in Bothell, WA
A: Every lender has a different process for reevaluating value. The first step is to contact the lender and get a detailed overview of their value dispute resolution process. You want to make sure that you are providing the lender with the precise information they need to consider a change in value.
The BPO broker or appraiser who sets the original value often does not have a complete picture of the property. When we request that a lender reconsider a home’s value, we gather as much documentation as possible. That includes comps, a summary of repairs needed, and contractor bids for those repairs. We sometimes pay to have our own appraisal done as well.
If the lender is unwilling to budge on their value, we find out when the appraisal or BPO figure expires and then work with the lender to order a new one.
Bank of America is one lender who is making an extra effort to work with brokers. BofA has streamlined their process for settling valuation disputes during a short sale, making it faster and easier for brokers to get the bank to consider an alternate value. Get step-by-step instruction on How to Dispute a Bank of America Short Sale Valuation.