subject: The Billings MT Short Sale Process [print this page] The Billings MT Short Sale Process The Billings MT Short Sale Process
Avoiding Foreclosure in Billings MT
The short sale process is still a mystery to many people in Billings MT. The Billings MT real estate market has not been affected as much as the rest of the nation but we have still been affected. There are hundreds of people facing foreclosure in the Billings MT area. Short sales are a way for some homeowners to avoid foreclosure.
Lots of buyers and sellers are confused about the process. Most realtors do not even know how to do a short sale or how it works.
The basics of a Short Sale
The most common reasons that banks will grant a short sale is because of a hardship or because the seller owes more on the mortgage than the home is worth.
Here are some examples of Hardships:
Unemployment/ reduced income
Divorce
Medical Emergency
Job Transfer
Bankruptcy
Death
Sellers who want to avoid foreclosure and do a short sale need to prepare a financial package to the bank. Every bank is different and required different documents. But most are pretty similar. Your short sale package will need to consist of:
Letter of authorization, which lets an agent or Investor speak on your behalf
HUD-1 or preliminary net sheet
Completed financial statement
Sellers Hardship letter
2 years of tax returns
2 years of w-2's
Recent payroll stubs
Last 2 months bank statements
Comparative market analysis or list of recent sales
How long does the short sale process take?
The short sale process varies. I have personally seen short sales take up to 9 months to complete. Not all short sales take this long but it is a very long process. Banks right now have thousands of delinquent loans and thousands of people looking to do short sales. For most people facing foreclosure in Billings MT the 9 months it takes to complete a short sale is just 9 more months you get to keep your house.
Here is the typical Short Sale Process.
Bank acknowledges receipt of the files. Around 10 days to a Month
A negotiator is assigned to the Case. 30 to 60 days.
A BPO is ordered.
File is sent for review. 2 weeks to 30 days.
The bank then issues a short sale approval letter.
I may have misses some steps in there but that's the general process. Things can go wrong in between and who really knows what the bank is doing or where your files are in the stack of thousands.
If you are a Billings MT homeowner who is facing foreclosure a short sale may be your best option. Every city even Billings MT has real estate investors who will walk you through the short sale process. There is no charge for this, investors make money from flipping the house.
