Hi Maureen,
> I heard of another report that you might know of, the BPO? Not sure
> I have the acronym right, but it means a broker's opinion.
> Heard of that one? I think banks use it for ballpark figures, before
> they decide whether the loan is going to go through and a full
appraisal is justified
Warning, I am about to get wonky. I've tried to define my mortgagese,
but if anyone has a question please let me know.
A BPO or drive by appraisal is used primarily for refinances with a
high loan to value (i.e. a $100K loan on a $300K property) or when
there is a fairly recent appraisal in a stable or rising market. They
can also be used in foreclosure situations to allow the owner to do a
short sale (sell for less than they owe because the property value has
decreased and the owner is behind on the mortgage).
Purchase appraisals in my experience are always done by an appraiser,
but I have only worked for and with banks. Maybe some mortgage
companies do drive by's? Sorry to honorable mortgage companies, but a
lot of them are shifty as they don't have much skin in the game.
You're right about condos as a community though. Appraisers use
comparable sales of like properties to determine value. My house on
1st Ave was comped with other single family houses on the northwest
side of AP. It was a rehab loan so it was comped with other
distressed properties first then given a projected repaired value by
comping it with other nice homes in the same area. There is wiggle
room here too, but most appraisers I have worked with are on the up
and up. Again, having worked for and with banks. There is a
preferred appraiser for Asbury Park. I can't remember the company,
but they were local and very good at assigning true value. BNY wanted
to lend in AP. Lenders do work to make loans where they want or need to.
Anyhow, You can't appraise a single family home comparing it to a
condo or a multi and vice versa.
I'm not sure how North Beach is operating their sales and financing.
They could have a variance to let them sell individually or sales
could be mostly cash or they might have a portfolio lender who is
willing to take on the risk. I don't see any ads for financing on
their site. So I can only guess.
It is easy enough to find out though. Go to their sales office and
ask them about financing.
Jennifer
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