BK Score
BK Score™ is generated from a finite set of data points in a prescribed sequence to achieve a resulting score between the values of 1 and 100.
The BK Score™ is shared with trustees, servicers, courts, and software management platforms and indicates the likelihood that an asset in a bankruptcy is qualified for consented disposition. The higher the BK Score™ there is a better chance to sell the property. In addition to the presented scores, BK Global provides the trustee a solution to sell the asset which maximizes the benefit to the estate. BK Global® is at the forefront of creating new industry standards for trustee services.
To consistently measure and predict market value of real estate assets nationally, in an ever changing and fluid real estate market, it is important to have a well-defined methodology that explains how values are derived. The BK Score™ uses multiple data points to predict sales confidence compared to the limited local market inputs used by real estate brokers who are not certified in short sales. BK Score™ incorporates a number of unique methodology questions that include the data points listed below.
The BK Score is an algorithm that takes into account over 30 data points to analyze assets providing Trustees and Servicers with an immediate evaluation of a property’s probability for sale.
Assets will fall into one of three categories based upon their BK Score.
1. Unqualified
Assets that score less than 25% are unqualified for sale. These assets typically have issues related to ownership, bankruptcy filing status, low value band, and condition to name a few. BK Global recommends abandoning these assets from the estate.
2. Marginal
Assets that scored between 25-50% are considered marginal. In many cases this is a product of either missing information or a few data points that impact the overall score. Often, the Trustee is able to obtain information at the 341(a) meeting that can positively or negatively impact the BK Score.
3. Qualified
Assets that score 51% or higher are considered qualified assets. These assets are recommended for immediate sale.
BK Score Core Benefits
Four major benefits to the proprietary BK Score
Increased Confidence of a Consented Short Sale
A decision tool that empowers trustees to make determinations on whether real estate assets qualify for a Consented Sale™.
Accelerates the Short Sale Decision Process
Technology that utilizes scoring systems allows lenders/servicers to make instant valuation and sales consent decisions. This is notable as applications for consented sale of property can be approved by lenders/servicers in hours rather than weeks for sales values which score above a lender's score cutoff.
Reduces Risk of Completing a Cooperative Short Sale
There are certain barriers to a short sale. Servicers are frequently wary of short sale offers because of concerns that they are settling the debt at too low a price. Greater probability that servicers will consent to a short sale is made possible thanks to BK Score™.
The BK Score™ empowers any lender/servicer to quickly set a cut off price and begin the short sale process, without time-consuming phone calls, faxed documents, or any effort from the agent or trustee.
Increases Transaction Transparency
BK Global™ is integrated with most major lender/servicers nationally. The BK Score™, which has revolutionized the default servicing industry, helps servicers select and execute optimal baseline valuations based on measurable guidelines while driving efficiency, fostering transparency and facilitating compliance.
With the use of BK Score™ agents and trustees can quickly collaborate and determine an appropriate list price that allow agents to begin pursuing sales offers with confidence. The BK Score™ algorithm has been developed by industry experts that have over 30 years of experience in Distressed Real Estate and Bankruptcy Sales. To date, over 2 years of bankruptcy assets have been analyzed and scored using the BK Global Scoring system. BK Score™ is a trademark pending registration with the US Trademark and Patent Office.