A BPO is a Broker Price Opinion.   This is often used in place of a formal appraisal.    When a loan is placed in default or loan terms are to be modified, the mortgage servicer may request a BPO to be completed.  Real estate brokers are given an order to do either a drive-by, exterior BPO or an interior BPO to determine the value of the property.   The value is based on local real estate market information, current neighborhood conditions and comparable properties that are currently for sale or have been sold.