Buying a Short Sale in Bozeman
Buying Short Sales, the theme for this topic should be patience, patience, patience. Anyone without the tolerance to wait for an answer should most likely not look at a short sale in the Bozeman area.
The process looks like this:
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The seller contacts a Bozeman Real Estate Agent to evaluate a listing price and sign a listing agreement (all short sales must be sold with an agent).
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The listing agent has the seller prepare all the documents necessary to provide the bank for a quicker response time and begins marketing the property.
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When a buyer provides an offer, the seller, with the agents help, should analyze the offer for potential acceptance by the bank and negotiate accordingly.
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The seller then signs an acceptable offer, which should have a clause in additional provisions that notes it is subject to bank approval.
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The offer is presented to the bank and the bank process then begins.
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Any updates in documentation from seller is provided to the bank
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The bank the orders a Brokers Price Opinion (a statement of value from another Bozeman Real Estate Agent)
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The bank then evaluates the data and determines if they are willing to accept the proposed offer, if not, they present a counter offer
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Once the bank agrees, if there is an "investor" (a mortgage could have been purchased by Fannie Mae of Freddie Mac, or have mortgage insurance attached to it), all documents are then submitted for approval to the investor.
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If there are any second or third mortgages, the original bank will provide an amount the are willing to pay to have those released and they must be negotiated with based on these amounts.
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Once the lenders have agreed, the first mortgage holder will issue a letter with the requirements including a timeline for closing.
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From this point, the buyer can expect a fairly standard process. Inspections will be completed as indicated in the buy-sell, and appraisal will be ordered, and closing will occur, usually within 30 to 45 days of bank acceptance.
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Please keep in mind, that while these are getting much quicker, this entire process can take 90 to 120 days on a good, easy transaction, hence the patience required. The communication from the bank and updates during this period of time may be little to non-existant, so be prepared. Understand that even if you do not hear from your agent on a daily basis that the process is just cumbersome and slow, but all in the transaction are working towards a positive result!
There are often some phenomenal deals in purchasing a short sale, however, be aware that not all short sales are worth purchasing. Please be sure to review with your Bozeman Real Estate Professional each individual home for the value it offers. If you find your dream home amongst the short sale inventory, communicate often with your Realtor, and be patient, it will be well worth your efforts.
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