• Skip to main navigation
  • Skip to content
  • Skip to primary sidebar
  • Skip to footer

Inhabit Missoula
2800 S. Reserve St.,
Missoula, MT 59801

Office Phone: (406) 370-4144
Fax: (406) 541-6551

About Inhabit Missoula

We’re proud of our opportunity to offer over 70 years of combined real estate experience to our clients. Our combined families have been in Montana since the early 1900s and are on our 5th generation here in Missoula. We’ve seen our town grow over the years and pay close attention to local issues, trends, and market fluctuations. Missoula has always been our home and we’d like to help make it yours.

Inhabit MissoulaInhabit Missoula

Your resource for Missoula Real Estate Information

  • Neighborhoods
    • Downtown Missoula
    • Central Missoula
    • North Missoula
    • University Area
    • Lewis & Clark / Russell
    • Pattee Canyon / Farviews
    • Rose Park / Slant Street
    • East Missoula / Riverside
    • McCormick Park Area
    • Lower Rattlesnake
    • Upper Rattlesnake
    • Target Range / Orchard Homes
    • South Hills
    • Linda Vista
    • Big Flat
    • Blue Mountain
    • Upper Miller Creek
    • Mullan Road West
    • Grant Creek
    • Expressway
  • Resources
    • Buying in Missoula
    • Selling in Missoula
    • 3D Virtual Home Tours
    • Rural Development Loans
    • Property Info Search
    • Market Analysis
  • Blog
  • About
    • About Inhabit Missoula
    • About Missoula
    • Missoula Schools
    • Missoula Webcams
    • Testimonials
    • Mailing List
  • Contact
  • (406) 370-4144
SearchClose

Foreclosures and Short Sales in Missoula, Montana

Purchasing a foreclosure, or a distressed property, seems to be what many are interested in currently.  And, while there are many areas of the country where purchasing a home out of a foreclosure can be very lucrative, we really haven’t seen that phenomenon very often in Missoula, MT.  

So, why the difference? 

Generally speaking, when a property goes to sale on the Courthouse steps (and yes, it really does get sold on the physical steps of the Courthouse), a representative from the bank/lender will almost always bid the amount they are owed.  It is usually at that point that the bidding stops, because the previous owner owed too much against the home.  If they had owed little on the home, they would have, most likely, refinanced.   After the banker/lender takes ownership of the home, they will usually hire a real estate agent to perform a comparative market analysis, suggest items that may need to be done to the home (such as make sure pipes don’t freeze over the winter, or empty out personal belongings the previous owners left behind, etc.) and then list the property on the MLS.  It is true that the banks are not in the business of selling homes, and it is also true that they don’t want to hold them any longer than they have to.  That being said, it is also true that they are in the business of regaining any losses they can. 

In large communities where there are extremely high numbers of foreclosures within an area, this process is a little different.  In situations like that, where there are few sales/market movement, the properties are sold for extreme discounts due to the overwhelming numbers of vacated homes.  These tend to be the situations that are bought for “dirt cheap.” 

With regard to short sales (which is usually the step before a foreclosure), the process may be a little bit different, but not a lot.  When a property owner owes more against the property than the property is worth, and they are trying to sell it for less than is owed, it is generally referred to as a short sale.  Banks/lenders are somewhat motivated to get these sales through, because they can save the additional expense of going through a foreclosure.  The problem with these, as many of us have either heard or through personal experience, is that lenders are inundated with short sale requests and they have become very difficult to get through negotiations.  Sometimes it is just a matter of not being able to speak with anyone who can actually make decisions with large lending companies, and other times it is just simply a result of too many requests and not enough manpower.  No matter what the reason, people really tend to shy away from short sales when they are looking at homes.  In addition, the amount that a lender may be willing to sell a property for varies with:

(1) the amount the previous borrower owed on the property;
(2) the listed price and how long it has been on the market with no offers;
(3) the amount of the BPO (“Broker’s Price Opinion”) on the property by an independent realtor;  and
(4) numerous other factors that could never be listed and would probably vary with each transaction. 

One of the lenders for one of the short sales I did actually went so far as to say that the amount they would negotiate was determined in part by how responsible of a borrower the Seller had been.  In that regard, they said he had been “too responsible” in his past and that his credit was “too good” to grant a short sale.  I guess the thing to remember with short sales is that they are very difficult, take a lot of patience for the Seller, Buyer, and all representatives involved.  In the end, there is a likely outcome that the home will be purchased for close to market value. 

In this market, most Sellers are expecting to negotiate some on price.  As a Buyer, I think it is important to do your own research – make sure you believe the home fits within the more current neighborhood sales.  If the listed price is higher than that amount – make an offer for what you think it is worth and see if there is a place you can come to agreement with the Seller.   When I have asked for feedback on pricing on some of our listings, a common response I have received was “it is probably close enough to get an offer” or “get it down some so it will be close enough to get an offer.”  And it does seem to be important.  Money is tight for a lot of people right now, and with that comes an inherent “need” for people to get the best deal out there.  There are a lot of homes on the market right now, and it is important to strategically place well with competition – on price and on condition.  If that is not an option, due to the amount owed on the property, then the negotiations often turn to the lenders and banks in short sales, and if that doesn’t work, foreclosures.

Posted in: Home Buying

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Post navigation

« Presentation of a Missoula Home For Sale
Housing Market in Missoula, MT »

Listings By Price

  • Under $150,000
  • $150,000 - $200,000
  • $200,000 - $250,000
  • $250,000 - $300,000
  • $300,000 - $350,000
  • $350,000 - $400,000
  • $400,000 - $750,000
  • $750,000 - $1,000,000
  • Over $1,000,000

See More Listings

  • Unlimited Access
  • Free Daily Alert
  • Save Search Criteria and Properties
Sign Up
Already registered
Sign In

New Listings

  • Just listed last 10 days
  • Just listed last 7 days
  • Just listed last 5 days

Free Real Estate Guides

  • This field is for validation purposes and should be left unchanged.

About Inhabit Missoula

We’re proud of our opportunity to offer over 70 years of combined real estate experience to our clients. Our combined families have been in Montana since the early 1900s and are on our 5th generation here in Missoula. We’ve seen our town grow over the years and pay close attention to local issues, trends, and market fluctuations. Missoula has always been our home and we’d like to help make it yours.

Sincerely,
Lorin Peterson, Real Estate Broker

About Inhabit Missoula

We’re proud of our opportunity to offer over 70 years of combined real estate experience to our clients. Our combined families have been in Montana since the early 1900s and are on our 5th generation here in Missoula. We’ve seen our town grow over the years and pay close attention to local issues, trends, and market fluctuations. Missoula has always been our home and we’d like to help make it yours.

Sincerely,
Lorin Peterson, Real Estate Broker

Contact Us

Inhabit Missoula
2800 S. Reserve St.,
Missoula, MT 59801

Office Phone: (406) 370-4144
Fax: (406) 541-6551

© 2018 Inhabit Missoula - Contact Us
2800 S. Reserve St., Missoula, MT 59801

Privacy Policy | Terms And Conditions | ADA Policy | DMCA Notice
| Website & Marketing by nailsoupmedia

ADA Compliance: In concurrence with the National Association of Realtors guidelines, Missoula Real Estate and it's affiliates are committed to providing an accessible website. If you have difficulty accessing content, have difficulty viewing a file on the website, or notice any accessibility problems, please contact us at (406) 530-9223 to specify the nature of the accessibility issue and any assistive technology you use. We strive to provide the content you need in the format you require.

Sitemap | IDX Sitemap | IDX Sitemap XML

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.

OkPrivacy Policy