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Email sent to my broker this am (waiting on realtor to drop by)

January 24th, 2014 at 11:16 am

Mark (this is the mortgage broker),

It is my position that the BPO should not be seen as relevant. Guy was not local, was unfamiliar w the area, has very little experience pricing and selling homes as a whole and all the homes he did work on were lower priced short sales. He also admitted to me he could not find enough relevant comps and the report itself contained major errors which either indicate lack of knowledge or extreme carelessness. I am unclear on which one or both as some of the errors do not make logical sense (it is not logical to think having more than twice the lot size is worth $480 more or that square footage can be adjusted at $10 a square foot ). This guy got so lost on the way to the home.. I had to drive to meet him 'where he was' and lead him to the house

Major errors exist in his report such as
1. comps from different zipcodes, totally different neighborhoods, different school districts. "comps" were not relevant
2. undervaluing lot size (adding $480 for a 1/4 acre lot size difference, for example)
3. mis-stating relevant facts on my home as well as other homes
missing fenced yards, finished basements, updated items, major improvements
mis-stating lot size for my home and other homes
listing a 'crawl' as a full finished basement
average rent on the home is $3200, not $1200
4. adding square footage adjustments at the value of $10 a square foot
5. some comps were frame (vs brick) with no price adjustment
6. failing to account for updated status of my home as compared to other homes
My home has new kitchen, baths, tile, expert finished basement. Many comps had brown VERY old vinyl, old cabinets, kitchen (evidnet in pictures easily available online)
7. using 'distressed sales' as comps including one auction sale and short sale properties

As you are aware I have asked one of the top realtors in town to come over today at 12:30 to give me a fair value of the home. I expect that value to be around $470-490k but will wait for his report. I will ask him to substantiate the value with comps and whatever else is necessary to send to the lender to revise their value.

I still do need to close by 1/31

Thanks for your help. It is really appreciated
Rachael

9 Responses to “Email sent to my broker this am (waiting on realtor to drop by)”

  1. Another Reader Says:

    If you could sell for $450-$475,000, would you be able to payoff the mortgage (not a short pay-off)? Would you be able to walk away with cash? You have limited options if this loan does not come through - what's the best one?

  2. Rachael777 Says:

    Mortgage balance is over $650k.. original loan $496k and 4 years of arrears.. payments were stopped for 6 months.. got loan mod.. loan sold .. new bank refused to honor loan mod AND refused to accept payments (bec it was in foreclosure).. this happened 3 times..4th bank sold too..so can not sell and pay off mortgage.

  3. creditcardfree Says:

    What IS option if your refinance does not go through? Can a lender really close in one week? I've never heard of that happening.

  4. laura Says:


    Totally hate to ask if this professional was from p - a - v realtors (previously located in Cicero, but I've seen signs in Westmont). We had a difficult time with him about ten years ago coming up with a realistic valuation on an 8-flat that was inherited by nine owners. He lowballed because he wanted to buy it.

    Anyhow, a quick look at Zillow yields a lot of information that would substantiate your point. Hobson is lovely, one of my daughters horseback rode in a subdivision off of it. Good luck.

  5. Another Reader Says:

    It does seem like a lot of people that could profit from getting this property cheap from the bank are involved. It's late in the game, but in your shoes, I might start calling hard money people that are not referrals from your "mentor" or broker.

  6. Rachael777 Says:

    Realtor just left.. .. he says land alone is worth $350k.. I asked if he had to sell in 60 days what would he value it as . he says 500-515k.. he will write a comprehensive report with comps and also point out what comps used do not make sense and also give a little blurb about his background.. top 100 Remax agents, sold thousands homes.. in the business for x # in town etc.. Called broker with update.. and asked him if this was the only roadblock. calling bank now to ask for an extension..

  7. Rachael777 Says:

    Asked for extension to 2/28. I did not get to talk to the manager who had helped me before but I did speak to one of the reps and he said he was 'instant messaging ' w the manager and thought the extension would be approved. Approval is up to the manager. They said 'watch my email' for the approval or call Monday if no news. Realtor will not hvae his report until Monday 3pm. Thanks for the support guys.

  8. Another Reader Says:

    Another 4 weeks would allow you to shop the loan to other lenders. However, at this point, getting this deal closed and the property out of the reach of the other folks involved would be best.

  9. Rachael777 Says:

    No email extension yet. I will call bank Monday. My stress would be GREATLY REDUCED if I got this extension. I feel like my stress has been super high for the past 3 weeks. Agree w 'another reader'.. about shopping loan (may be a good idea) but feeling a little shopped out and instead I think I may just close w this .. I DO have one other lender who may be less so will call him. And luckily I have 2-3 other lenders who will close on same or similar terms but 3 of 4 of them want an appraisal (more #). Hoping for extension Monday and revised value from bank on Tuesday??.

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