DRE Can Discipline Licensee for Inflating BPOs:

New Law Just Passed (from the Dept. of Real Estate)

Beginning on January 1, 2009, the DRE can suspend or revoke a real estate license if the licensee generates an inaccurate opinion of value (Broker Price Opinion or BPO) for a short sale of residential real property to manipulate the lender to reject the short sale or to acquire a financial or business advantage, such as obtaining a listing agreement. This new rule aims to preclude a self-serving agent from inflating a BPO in hopes that the lender will reject the short sale, foreclose on the property, and give the BPO agent an REO listing. Senate Bill 1737.

This may be something you can use to your advantage at the BPO appointment. Can't hurt to ask the BPO agent if they know about this new law. More incentive for their BPO to come out low.