Broker Price Opinion ( BPO ) & Settlement Offer

[sardis11]

I have submitted a settlement offer to my second mortgage holder (in foreclosure, post Chapter 7 discharge). They have scheduled a broker price opinion.

Any idea on how the valuation on the house is determined in this instance - i.e. is it valued as if it were a foreclosure (REO), full retail, or something else?

[DeadManCrawling]

BPO is exactly the same thing as a standard CMA (Comparative Market Analysis).

What happens is:

The real estate agent or broker will look at your property (maybe just online), and compare it to other similar properties in your subdivision or within a certain range of miles.

Based on sales of the last six months or so, they will assign a value. This can be terribly low in this market, and is usually hurt further by foreclosures in the area.

If you are hoping for a low price, this is a good thing (BPO). If you want a high price, you're probably out of luck.

Also, these things are as much opinion as they are science.

An example:

At the top of the market in about 2004-05, we thought about selling. One agent came by and declared our house was worth 700k. She loved the place and everything about it. Personally, I thought it ws WAY too high. I thought 550k would be more accurate, then.

A second agent said it was worth NO MORE than 380k. She explained that NO ONE is interested in classical Mediterranean two story homes here. Everyone wants typical Florida "Palm Beach" style.

My wife became an agent shortly thereafter, and we started to get an inside look at how such things work.

Hope that was somewhat helpful, and good luck in your journey!

-dmc

[relief13035]

We settled our HELOC with CitiMortgage in August. A local realtor came to our house to do the BPO. We were very fortunate with her. She asked us what we were trying to do. She took a couple of pictures and then gave the lender a very low price for the market value.

YOU WANT a low value!!!

We had a HELOC owing $125k. We offered them a settlement of $13k. CitiMortgage came back with a settlement offer of $20k. I called them and told them that all I had was $15k. Within an hour they called me back and accepted my offer.

[Lajazz947]

We settled our HELOC with CitiMortgage in August. A local realtor came to our house to do the BPO. We were very fortunate with her. She asked us what we were trying to do. She took a couple of pictures and then gave the lender a very low price for the market value.

YOU WANT a low value!!!

We had a HELOC owing $125k. We offered them a settlement of $13k. CitiMortgage came back with a settlement offer of $20k. I called them and told them that all I had was $15k. Within an hour they called me back and accepted my offer.

Does the payment have to be made all at once or can you make payments?

I am going to start negotiating with Wells Fargo on my second of $50,000. I beleive that in todays market it is basically unsecured but who knows.

I am still waiting to get into the modification department at Wachovia who seem to be easier to work with than others.

I have sent a hardship letter to WF already.

Should I now send a written offer of say $5000? I am about 5 months behind on payments without a peep from them.

Thanks.

[relief13035]

I stopped paying my HELOC in Feb09 and they settled in August. YES- it had to be paid all at once. We had to wire the money to them within 10 days. I went straight to the Executive Response Team at Citi, didn't mess with the loss mitigation dept.

I have heard of many lenders are settling 2nd's for 10%.

[relief13035]

Here's the IMPORTANT emails you need for Wells Fargo. Write an letter stating you would like to settle your 2nd and email it to all these people. You WILL get immediate response.

Cara K. Heiden, CEO
WELLS FARGO HOME MORTGAGE
[email protected]

Mary Coffin, Vice President
WELLS FARGO HOME MORTGAGE
[email protected]

Sharon Cecil, Assistant to Both
WELLS FARGO HOME MORTGAGE
[email protected]

Todd M. Boothroyd
Senior Counsel, Real Estate Division
[email protected]

Dick Kovacevich (415) 396-4927
[email protected]

John Stumpf (415) 396-7018
[email protected]
CEO: John G. Stumpf
420 Montgomery St.
San Francisco, CA 94163
1-866-878-5865

Mark Oman (515) 324-2035
[email protected]

Cara Heiden (515) 213-4040
[email protected]
Executive number for members to use to escalate the process 1-800-853-8516.
Executive Communications
MAC X2302-02J 800 S. Jordan Creek Parkway
West Des Moines, IA 50266
515-324-3130
and
515-324-2872

Denise Erickson
Executive Mortgage Specialist, Office of the President, WF Home Mortgage
MAC X2302-019
1 Home Campus
Des Moines, IA 50328
[email protected]
1-515-324-2610

[Lajazz947]

Here's the IMPORTANT emails you need for Wells Fargo. Write an letter stating you would like to settle your 2nd and email it to all these people. You WILL get immediate response.

Cara K. Heiden, CEO
WELLS FARGO HOME MORTGAGE
[email protected]

Mary Coffin, Vice President
WELLS FARGO HOME MORTGAGE
[email protected]

Sharon Cecil, Assistant to Both
WELLS FARGO HOME MORTGAGE
[email protected]

Todd M. Boothroyd
Senior Counsel, Real Estate Division
[email protected]

Dick Kovacevich (415) 396-4927
[email protected]

John Stumpf (415) 396-7018
[email protected]
CEO: John G. Stumpf
420 Montgomery St.
San Francisco, CA 94163
1-866-878-5865

Mark Oman (515) 324-2035
[email protected]

Cara Heiden (515) 213-4040
[email protected]
Executive number for members to use to escalate the process 1-800-853-8516.
Executive Communications
MAC X2302-02J 800 S. Jordan Creek Parkway
West Des Moines, IA 50266
515-324-3130
and
515-324-2872

Denise Erickson
Executive Mortgage Specialist, Office of the President, WF Home Mortgage
MAC X2302-019
1 Home Campus
Des Moines, IA 50328
[email protected]
1-515-324-2610

Fantastic, thank you so much.

Does the letter need to state my offer or anything in particular or just a simple " I want to settle "?

[Lajazz947]

Oh, by the way, I assume that this triggers a 1099 for a forgiveness of debt?

[relief13035]

I wrote this hardship letter and Citi immediately called.

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to begin to become delinquent on our 2nd mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to settle our loan in full.

As I am sure you are aware, we have been discharged in Chapter 7 bankruptcy and are free to just walk away from this obligation. At this time, I am writing to you to see if we can settle this HELOC loan for 10% to be paid in full within 6 months. We have the means to obtain this amount of our settlement offer now. Obviously if we were to just foreclose, your chances of receiving any payment at all is bleak at most due to the fact that the 1st is barely covering the home value.

We would appreciate your consideration to accept our proposal for settlement.

Sincerely,

[albacore44]

I wrote this hardship letter and Citi immediately called.

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to begin to become delinquent on our 2nd mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to settle our loan in full.

As I am sure you are aware, we have been discharged in Chapter 7 bankruptcy and are free to just walk away from this obligation. At this time, I am writing to you to see if we can settle this HELOC loan for 10% to be paid in full within 6 months. We have the means to obtain this amount of our settlement offer now. Obviously if we were to just foreclose, your chances of receiving any payment at all is bleak at most due to the fact that the 1st is barely covering the home value.

We would appreciate your consideration to accept our proposal for settlement.

Sincerely,

Nicely done. You seem to have a Line on who to contact at these banks to make settlement offers. if you have any information on HSBC, I'd be happy to accept it.
Thanks

[relief13035]

Nicely done. You seem to have a Line on who to contact at these banks to make settlement offers. if you have any information on HSBC, I'd be happy to accept it.
Thanks

Give me a few days my dear and I will have all the contacts you need!

[relief13035]

So far this is the only contact I have for HSBC, but I have "people" looking for you.

HSBC Mortgage (800) 338-6441
Default Resolution Team
2929 Walden Avenue
Depew, NY 14043
(888) 648-3124 Loss Mit
(732) 352-7519 Fax

[Lajazz947]

I wrote this hardship letter and Citi immediately called.

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to begin to become delinquent on our 2nd mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to settle our loan in full.

As I am sure you are aware, we have been discharged in Chapter 7 bankruptcy and are free to just walk away from this obligation. At this time, I am writing to you to see if we can settle this HELOC loan for 10% to be paid in full within 6 months. We have the means to obtain this amount of our settlement offer now. Obviously if we were to just foreclose, your chances of receiving any payment at all is bleak at most due to the fact that the 1st is barely covering the home value.

We would appreciate your consideration to accept our proposal for settlement.

Sincerely,

I just sent my letter to WF today. I offered $5000 payable over 60 months with no interest on a $50,000 HELOC.

I know, I know but what do I have to lose? They are pretty much unsecured anyway.

Waiting to deal with Wachovia on my 1st. I will keep you all posted.

[spidge]

We settled our HELOC with CitiMortgage in August. A local realtor came to our house to do the BPO. We were very fortunate with her. She asked us what we were trying to do. She took a couple of pictures and then gave the lender a very low price for the market value.

YOU WANT a low value!!!

We had a HELOC owing $125k. We offered them a settlement of $13k. CitiMortgage came back with a settlement offer of $20k. I called them and told them that all I had was $15k. Within an hour they called me back and accepted my offer.

This is great to hear. Did you get proof that they removed themselves from the tittle?

[StartingOver08]

This is great to hear. Did you get proof that they removed themselves from the tittle?

What you want from Citi is a "mortgage satisfaction' signed by them and then you would record it so if you ever sell or refi the property, the lien has been removed. If the lien is not removed it will create title issues upon sale or refiance of the property.