Seem lately I have been getting nothing but difficult BPOs to the point where I look at the order for the one thing or things that are going to make it work instead of mowing down the comps. An A-Frame in the middle of nowhere. A house on 5 acres where in 20 miles there aren't any on 5 acres. A really small house on a really big parcel.. The list goes on. So my new pet theory is that banks are using automated valuation programs to do a good number of BPO's themselves and then kicking the ones that the computer spits out to the humans. Any insights welcome.
Actually I just had an insight about this whole thing. The REO wave is moving away from the subdivisions that were built during the easy money days as most of those homes have already gone REO and been bought. Perhaps one reason for the BPO's getting harder is that the default wave which generates BPO's is passing through as predicted, the alt A and pick your pay loans. Many of those homes were bigger, fancier, more unique, not so much subdivision financing. I think this observation has some truth to it. I'm seeing a lot more distressed and/or vacant big, upgraded homes in my BPO journies of late.