It seems today that technology and changing times have made our society lazy. We have abbreviations and acronyms for all sorts of words and expressions that may leave our head’s spinning. Whether you will BRB or are MIA the world of abbreviations can lead to more confusion than simplicity. From TMI or LOL, from TBC to RSVP, from 24/7 to BYOB, etc. etc. etc there seems to be an acronym for everything. This has even transformed into the real estate world where you may feel like you need an English- Realtor dictionary just to dissect some of the common phrases.
If you are looking into a short sale in Minnesota as an alternative to foreclosure, there are only two abbreviations that you need to be familiar with – BPO and CDPE.
What is BPO in a Minnesota Short Sale?
BPO stands for Broker Price Opinion and is, essentially, the same thing as an appraisal. In a short sale transaction, the lending company will hire a broker company to appraise your home. This usually occurs after you have submitted the paperwork for the short sale. You can expect it to take a couple of weeks before a BPO is done on your house. This is because, in many instances, the lending company’s head office will not be located in the same area as your home and thus, the lending company will need to contact a brokerage agent in the Minnesota area to see the value of the house. The broker company will then assess the house both inside and out in relation to several different factors to determine its current market value.
A BPO can affect you because it can determine whether the lending company will accept the offer of the short sale. Let’s say, for example, that a potential short sale buyer was offering $200,000 on your home. If the BPO comes back that the home is valued at $175,000, then the lending company may accept the short sale and simply ignore the difference. However, if the BPO is only $100,000, then you may have a harder time getting the lending company to accept the Minnesota short sale. The closer the BPO is to the short sale offer, the better chance you will have of the short sale transaction going through.
What is a CDPE in a Short Sale?
Another abbreviation you will need to know is CDPE which stands for Certified Distressed Property Expert. A professionally trained CDPE is someone who can help you out with the short sale of your Minnesota home. They are a trained real estate agent who specialize in short sales in MN.
When it comes to the short sale process, having an experienced professional on your side is by far the best move you can make. They are there to act as the middle man between the lending company and you. Instead of worrying about the approval process and the paperwork involved, you can concentrate on supporting your family while a CDPE handles the dirty work. This will ensure the transaction is handled in an effective manner and approved ASAP.
