Homeowners and real estate agents may wonder about the difference between a short sale and...
Tips and Tools for an Effective Value Dispute
- Tell your short sale specialist at the lending institution you are working with that you would like a reconsideration of the value.
- Ask your short sale specialist if he or she has a document that specifies all requirements for a successful value dispute.
- Fill out the form and attach any requested evidence. (Do not leave any blank lines.)
- Stay in touch with your short sale specialist for results.
- Usually, a value dispute takes about 10-12 business days to review once all required information has been received.
- Use a standard BPO form (or make a copy of one used by REO agents in your brokerage).
- Complete a Comparative Market Analysis, and focus your value on recently sold properties (within the last three months) in order to support your value.
- Send in the buyer’s appraisal—the one s/he is using to obtain the loan.
Provide comparables that are recent, proximate (nearby), and similar to the property in question.
- “Recent” means sold within 90 days of the actual value document date.
- “Proximate” varies by location. In a rural area, for example, a home five miles away could be considered proximate.
- You should also provide additional notes to highlight the characteristics of the comps.
- Provide two itemized estimates from a licensed contractor on the contractor’s letterhead.
- Provide photos to illustrate the repair, condition issue, or hazard you want to highlight.
- If the property will not qualify for financing due to condition or other circumstances, explain how that will impact the valuation.
READ SIMILAR ARTICLES
If you are like most residents of the United States, you are probably spending much more time at...
If you thought that short sales were way back in the rearview mirror, you may want to think again....