BPO
Hi Sharon,
I wrote you a couple of days ago regarding my approach after I learned about a BPO from my realtor. I created my flyer, drove to the address, knocked on the door and after my introduction I was faced with "Am I in foreclosure?", "Are you sure you have the right address?", "Oh my God, I have to call my bank!". I briefly appologized for any confusion and left.
I am somewhat embarrassed and confused my self, why else might a bank order a BPO? Do you have any thoughts on this type of reaction? 
Great experience....I don't do not know of another reason besides what we mentioned that a bank would pay for a BPO. What I do know is that homeowners will lie about their situation when faced with it. I have had numerous occasions when a homeowner would tell me that it is a mistake on the banks part. I've learned to leave my card if they are at all friendly and just mention that I can be contacted for advice anytime. They might only be behind in payments and not in foreclosure yet when a BPO is ordered, and maybe that was the reaction, but they are still in default.
BPO = ?
Just a thought regarding why a BPO would have been order.
The most typical reason as you pointed out would be due to a default status, however, sometimes a BPO is requested if the mortgagor has requested a "Loan Modification" or requested to drop PMI.
It could also be as already pointed out, that they were too embarrassed to say anything.
Just some maybe's.
To answer dmb's question of what is a BPO, see the response of SharonRestrepo-Veteran Investor:
http://www.thecreativeinvestor.com/ViewTopic3670-18.html
Lenders typically will order a BPO when you request that the Private Mortgage Insurance be dropped. This is the only case I am aware of where the lender will order this unless they are in default..
Hi Iamja,
Many, many times when you knock on a door, homeowners will seem surprised. If that is the case, I share how I found the information, offer some solutions and offer to make the calls to confirm the situation. If they'll let me make the calls to the lender and it is foreclosure, I am in the door. If it turns out not to be true I am no worse off and they are relieved.
Some homeowners have gone soooooo long without making a payment, they are stunned when the bank actually forecloses. Trust me.... they know their payments are late. Don't get distracted by their shock.. offer to help and take over!!!
Dwan