BPO

A BPO is a Broker Price Opinion.  This is used by mortgage lenders to help put a value on the property.  There are several reasons one might need to use a BPO:

• Homeowner behind on mortgage payments and pending foreclosure
• Refi candidates
• Cost of appraisal to be avoided

When the lender is considering a foreclosure, or looking into the borrowers financial for another solution, they will order a BPO.  This BPO will allow them to get a a clear understanding of how much teh proeprty is worth. Once they get this estimate they will compare it to the mortgage balance and recommend solutions.