Jack's Blog » Bank Owned

Bank Proverb We All Should Be Reminded About..

Jack Lewitz — Sat, 05 Nov 2011 14:29:29 +0000

A Banker is a fellow who lends you his umbrella when the sun is shining but wants it back when it begings to rain

Buying Foreclosures

Jack Lewitz — Thu, 08 Sep 2011 13:07:55 +0000

This is a first in a series of blog articles that wil be dedicated to helping First Time Home buyers understand how to buy a foreclosure.

Many people do not understand that Fannie Mae has a program that is called “First Look” that allows “First Time Home Buyers” the option to make offers on their homes over “Investors” offers.

“First Look” is a way Fannie Mae encourage more homeownership and let’s be frank a real estate market driven by homeownership vs investor driven market is a healthier real estate market.

So for the first 15 days a Fannie Mae Property is on the market it can only receive offers from buyers who want to occupy the home. Investors are not permitted to make offers during this 15 day “First Look” period.

So if you are a first time home buyer then I would consider buying a Fannie Mae owned property.

What Goes into a Broker Price Opinion (BPO)

Jack Lewitz — Wed, 22 Apr 2009 15:41:46 +0000

The Short Sale review process begins with ordering the Broker Price Opinion (BPO).

A BPO is nothing more than comparing “Apples to Apples” (Single Family to Single Family, Condo’s to Condo’s and Multi-family to Multi-family) and coming up with a “Current Market Value” for the Subject Property.

Three (3) Sales Comp’s are required in each BPO. The bank wants these sales to be within the past 6-months to 12-months. The Sales must be within a mile radius of the subject property and if there are any sales that are sold in “As-IS” condition like other Short Sales or Foreclosures then these should be used first as a Sales Comp. The Bank wants to also know the Last List Price , the Final Sales Price, the Number of Days on the Market, and Financing such as FHA, Conventional for the buyer.

Three (3) Active Listings are required in each BPO. The bank wants Active Listings of other Short Sales and Foreclosures being sold in “As-Is” Condition. These listing should be within a 1 mile radius of the subject property. The Original List Price, Current List Price, and number of days on the market is also included.

Market Conditions are included in a BPO. The average Days on Market (DOM.), description of area as rural, suburban, or urban. Is the market declining, stable, or increasing.

Subject Marketability is describing the negative and positive features of the subject property in relation to the current market conditions.

Estimated Value is based on “As-Is” Conditions and “Repaired Conditions. Market Values will include List price and estimated Sale prices for 60-90 days and another value for 90-120 days.