Short Sales Common Questions from Billings Homeowners

Short Sales Common Questions from Billings Homeowners

Everyone I come in contact with has questions about short sales, from homeowners, to realtors, to other Billings Montana Real Estate Investors.  There are some great investors In Billings Montana that are experts in Short Sales.  If you are an investor when a question comes up are you prepared to answer tough questions?  Homeowners getting a Short Sale done should try and find out as much information about the process as possible so nothing unexpected comes up.  Below are some frequently asked questions?

How Longs Does this Process Take

This is a question that most will ask during the first meeting.  You should also be up from and never give false expectations that the sale will transact quickly.  A short sale can take anywhere from four to fourteen months, so you want to prepare your customer for an involved process.  The banks are getting better and faster but they still take some time.

Even the simple steps in the process can take days to complete right.  Sometimes working with some of the bigger banks can be a pain.  Simple processes like faxing a document to the loss mitigation can take hours.   Loss mitigates can get hundreds of faxes a day and it takes them time to sift through them all.

Everyone should explain to homeowners that it may take several months of work and waiting.  If everything does work out quickly then great

What happens during the short sale process?

Make sure as an investor that you go through all of the disclosures one by one with the homeowner getting the short sale done.  This way they are prepared with all the information they need if the bank asks them any questions.  Also let the homeowner know step by step what you will be doing from assembling the short sale package to negotiating with the bank to finding a buyer for the property.  If you are a homeowner make sure that the investor you are working with keeps you in the loop with the process.

Why is the bank sending me letters?

Many homeowners get letters from banks notifying them that the short sale has been declined.  Let the homeowner know that they will be getting a letter from the loss mitigation department letting them know that the short sale has been declined.  Real estate investors always turn in a very low first offer and expect it to be declined.  You never know, the bank may sometimes accept it but most decline the first.  Also let them know that it is just part of the negotiation process.

How are you financing the sale?

Most homeowners want to know if you are paying cash or what is going on.  Explain to the homeowner what you are doing.  Let them know that the process is complete when you resell the property.    Most short sale programs involve the resale of the home in order to make a profit and complete the sale.  You will be buying it, but also have buyers who want to buy it before the sale is done.  The reason we have buyers already is because most buyers don’t want to do the short sale themselves, so short sale experts do them then sell the property to another buyer.  Homeowners should not worry that they are getting ripped off somehow.  No investor would be in business long if they did rip off clients.  Always explain the whole situation to them and what is happening.  This way homeowners are not surprised when there is a for sale sign in their yard.

How can I know what is happening?

Since your short sale deal with the bank takes a few months and involves many steps and negotiations, many homeowners become confused about what is going on.  As an investor you have to keep them in on the process.  Set them up with some kind of email notifications so they can track what is going on.   You can even set them up with some kind of Google calendar alert.

I hope this helped investors and homeowners with some common questions.  There are many more questions and concerns.  The key is to always keep homeowners informed with every step of the process and always be honest.

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