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 Wisconsin 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 Wisconsin 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 Wisconsin 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 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 Wisconsin home. They are a trained real estate agent who specialize in short sales in WI.

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.

Short sales in Wisconsin are becoming more and more common, especially with the number of potential foreclosed homes continues to rise. A short sale is an alternative to a house foreclosure on the real estate market that occurs when the lending company agrees to allow a house to sell on the market for less than what it owed on the mortgage. The difference is dropped and the original house owner (the short sale seller) is able to walk away without debt and without a ‘foreclosure’ mark on their credit report. However, when it comes to a short sale in WI, who is actually making the profit? We all know that someone must be benefiting from this transaction so where is the money going?

The Small Profiteers in a Short Sale in WI

The first person who is going to provide from a Wisconsin short sale is the lending company. Although they may be taking a small hit by accepting the sale of a house for a smaller amount than what it owed on the house, they are still making back their investment money and thus benefiting. In most instances, the money they have made from the interest incurred on the mortgage loan will  more than make up for the additional money that they may lose by allowing a short sale to go through. Furthermore, if the house is foreclosed, the lending company will have even more expenses on their hands and usually lose a large profit if the house does happen to sell again.

Another person who benefits from a short sale is the buyer in the short sale. Although they are paying for the house and inevitably going into debt and incurring a mortgage, many short sale buyers are using this home as investment property. In the end they are getting a great deal on a decent home and will be able to profit from it once the market picks up or once they determine what they want to do with the house.

Although the WI short sale seller will most likely not have to worry about additional taxes and fees for their house, the lending company or the new buyer will take on this responsibility. And thus, the Internal Revenue Service is still profiting from a short sale.

The Biggest Winner in Short Sale Transactions

However, perhaps the person who comes out on top is the original home owner. Although technically they are not pocketing any money, they are walking away from a very tough situation with hardly any damage done. Their credit report will not suffer as much as it would if they were go foreclose their home. Furthermore, they are not left with the emotional stress or shame that comes with a house foreclosure. And, finally, instead of worrying about what’s next, short sale sellers are able to walk away and start over. So, although there is no money involved in the transaction, the short sale seller will most certainly walk away with a bargain – their financial freedom.