Drive-by BPO Form: Estimating Mortgaged Property
A failure to pay a mortgage in a timely manner can result in strict penalties for debtors. Occasionally borrowers are unaware of the consequences of not making their payments. Today we will find out about one of the Broker’s Price Opinion (BPO) statements - the Drive-by BPO Form, which is used to appraise a property’s exterior.
Who needs a Drive-by BPO Form?
The Drive-by Form is used by a broker, a real estate agent, or an appraiser, who acts on behalf of a financial institution acting as a lender. The most common reason this form is used is because of a mortgage borrower’s failure to make due payments. A lender can take advantage of a broker’s services to determine the status of a building and let the lender know of potential foreclosure proceedings. This determination is given in a “broker price opinion” - the BPO form.
What is a Drive-by BPO Form for?
A broker can conduct an interior or a Drive-by BPO. The latter is typically ordered when a house needing appraisal is occupied and a real estate agent does not have access to the interior of the property. Instead, they must rely on the exterior condition, neighbourhood details, comparables, etc, to form an opinion. The Drive-by BPO provides information about general conditions of the real estate. The main part of the document includes photos of the property. As has been mentioned, a real estate appraiser is not tasked with assessing the inside of the home, only with driving by and trying to assess the condition of the property from the outside.
Is a Drive-by BPO Form accompanied by other forms?
The Drive-by BPO form does not have to be accompanied by any other forms, unless they are particularly requested by a broker’s client.
When is the Drive-by BPO Form due?
Generally, the Drive-by BPO document is valid for half a year like any other assessment. However, it’s important to understand that this form is requested in order to obtain relevant and up-to-date information about property status and may not reflect the actual property condition within six months.
How do I fill out Drive-by BPO Form?
The Drive-by BPO form is a five page document that should be filled out in the form of a table. Besides the address, borrower's name, broker’s name, date of inspection, etc., the broker has to provide information about general conditions of the property, neighbourhood information, three recently sold comparable properties, three currently listed similar properties, visual condition of all individual exterior features, etc. Photos of the property are also mandatory.
Where do I send Drive-by BPO Form?
The broker’s client, the lender, should reserve the original BPO document for further proceedings.