Improper Broker Price Opinion Fees Could Give Homeowners a Legal Claim

When mortgage borrowers default, lenders frequently bill the borrower for property inspections to ensure that the property is not abandoned. Lenders might also reach out for broker price opinions, also known as a real estate BPO, to get a sense of the property’s value prior to a foreclosure sale.

However, fees for a broker price opinion and related charges could exceed what is allowed by the mortgage terms or federal regulations. Potential homeowners need to be aware of their rights and what are appropriate fees.

What Is a Broker Price Opinion?

Broker price opinions (BPOs) are frequently connected to short sales and foreclosures. Banks and companies might hire a real estate broker in order to gather an opinion of the property’s value. The representative of the broker will look at three similar properties that recently sold and will adjust up or down for various differences.

The final result of this calculation is their opinion of market value. Broker price opinions, however, are often controversial, particularly if the agent putting together the opinion has little knowledge or experience about the neighborhood.

Broker price opinions typically cost much less than a comprehensive appraisal, and excessive fees associated with a broker price opinion could enable a consumer to file a lawsuit against the company that ordered the assessment. If your mortgage or bank charged you for a BPO at the time you defaulted on a home loan, you need to evaluate the specific circumstances of this action.

Banks and BPOs

The details presented by a broker price opinion are used by the banks prior to listing a home for foreclosure sale. While this only provides the bank the immediate property value, the bank may also charge a borrower for this report. In many cases involving broker price opinions, these fees are excessive and unnecessary, and most homeowners are not even aware that they have been charged.

Multiple banks have faced broker price opinion class action lawsuits in recent years due to allegations from consumers that those homeowners were charged unnecessary fees for property inspections as part of a scheme that, according to the consumers, violated state and federal law.

According to consumer advocates, multiple banks are allegedly violating these federal laws by ordering multiple property inspections while hiding the true nature of these charges from the customers on the listed mortgage statements.

After it is determined that the property has been occupied, federal regulations order that these property inspections discontinue. Moreover, banks are not allowed to charge an owner of a home for more inspections if a property is still occupied.

There is a current BPO fee class action lawsuit investigation surrounding those consumers who were assessed fees from U.S. Bank, Quicken Loans, Loan Depot, Freedom Mortgage, Flag Star, Caliber Home Loans, and Seterus. If you believe that you have been subject to unnecessarily high broker price opinion fees, or multiple BPO fees, you could participate in a class action lawsuit investigation.

Join a Free Property Inspection & Broker Price Opinion Class Action Lawsuit Investigation

If you were in default on your mortgage in the last three years with one of the following banks, you may qualify to join this property inspection fee class action lawsuit investigation:

• Caliber Home Loans
• Flagstar
• Freedom Mortgage
• LoanDepot
• Quicken Loans
• U.S. Bank

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