I think that padding the HUD is the best way to overcome all lien holder issues. Padding the HUD is going above and beyond what you are being asked of by the seller and buyer:
  • 7% commission
  • relocation fees to seller
  • junior liens
  • repair credits

I have had a deal recently with BOA that allowed all of this. But the only way is by getting a strong offer, and having some influence or communication with the BPO agent.

The worst practice is just plain giving access codes to the BPO agent and waiting on the results. We need to meet face to face with contract and comps in hand, and get on the same page.

Go over all the damage to the property, make sure the agent is on the same page and that a value estimate too high will result in foreclosure to the seller.


Its not easy, but I think it helps. 


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I agree 100%. Its better safe than sorry, or the biblical "you have not because you ask not" holds true in many cases. Don't forget HOA/Condo dues. We don't pull an estopple in advance, but we estimate ABOVE the worse case senario and also include possible HOA attorney dues as well.
I have to wholeheartedly agree with you on discussing the property conditions, comps, etc with the BPO agent. Unfortunately, there are those who fail to realize the significance of the BPO. For this reason, I ALWAYS submit my very own BPO along with my offer to the bank. At the very least, it will most likely garner you a third BPO if the second comes in significantly higher than the first.
Padding the HUD gives you negotiating room for sure.
I absolutely agree as well.  I always include my broker's "flat fee".
We teach the same as well and practice the same.  Also good to overestimate tax prorations and back association dues.  It is always better safe than sorry!
We've gotten relocation fee to sellers too, without it being HAFA.  It can be done and I agree with everything you said.  So long as the offer is in line with the BPO I THINK it can be done.

I love when people say "influence" the BPO.  You really aren't INFLUENCING.  You are providing factual info to support your offer price.  I often read people's blogs that say you shouldn't INFLUENCE the bpo, but you absolutely SHOULD be there with comps, inspection reports, repair estimates, contractor estimates, appraisals, or whatever else you have that you know affects the value of the property.

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