What is a BPO? Short Sale Specialist Explains BPO Do’s & Don’ts

Short Sales
People involved in short sales and even loan officers and Realtors who haven't dealt with them may ask themselves, what does BPO stand for? The quick answer is Broker's Price Opinion. The bank and its investors who are considering taking a loss on a short sale won't take the sellers' or the Realtor's word on the best price for the property. As such, the BPO is something like the bank getting a second opinion from another (supposedly independent) Realtor. The bank will then use this value as a factor when considering the short sale application. It's important to make sure that the bank does an "Interior BPO" because sometimes the bank will use an automated, computer-generated value that is often much higher than the real-world price. At times, it seems…
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