One of lenders' most common requests these days is for a broker opinion of value of assets in a loan portfolio, nearing or in distress. Lenders should consider these a "spot check" on the situation, not a hard and fast appraisal that would translate into a completed sale.

A BOV should be requested when the original appraisal valuation is more than two years old, as lenders should have an updated estimate of value due to market conditions. The best use of this information is to determine what the asset's value is relative to the outstanding debt and to estimate the property's cash flow compared to the required debt service.

The difficulty for the lender and broker in this situation is to have the BOV done under the radar of the current owner so the broker can make an independent evaluation, unfettered by the borrower's input. The BOV is not a full appraisal, which should still be completed in the case of a change in control