As unfortunate as it can be when homeowners fall behind on mortgage payments and must face the possibility of losing their homes, short sales and foreclosures provide them options for moving on financially. The terms are often used interchangeably, but they’re actually quite different, with varying timelines and financial impact on the homeowner.
A short sale comes into play when a homeowner needs to sell their home but the home is worth less than the remaining balance that they owe. The lender can allow the homeowner to sell the home for less than the amount owed, freeing the homeowner from the financial predicament.
On the buyer side, short sales typically take three to four months to complete and many of the closing and repair costs are shifted from the seller to the lender.
On the other hand, a foreclosure occurs when a homeowner can no longer make payments on their home so the bank begins the process of repossessing it. A foreclosure usually moves much faster than a short sale and is more financially damaging to the homeowner.
After foreclosure the bank can sell the home in a foreclosure auction. For buyers, foreclosures are riskier than short sales, because homes are often bought sight unseen, with no inspection or warranty.
The appeal of the Lake Tahoe home foreclosures is that, as opposed to purchasing the same at a Lake Tahoe foreclosure auction, when the lender acquires an REO (real estate owned), they usually attempt to resolve any other liens to get a clear title, as well as deal with tenant evictions, and clean the property, so when the property is resold as a Lake Tahoe foreclosure it is usually free and clear of any liens, tenants, and mess, and still well under market value.
Here are some examples of Lake Tahoe REO’s that have sold within the past year:
This Lake Tahoe home was sold for $922,000 as a REO at 4037 Courchevel Road in Tahoe City.
This Tahoe Property was sold for $808,000 at 349 Forest Glen Road in Squaw Valley.
Next are some examples of Short Sales in the lake tahoe area within the past year:
This Lake Tahoe Property sold at $402,000, located at 3003 Meadow Ct. #3 in Olympic Valley.
This little Tahoe Charmer sold for $363,000 at 13246 Hansel Ave in Truckee.
There are no short sales or foreclosures on the market at this time but to view all of our listings please visit our website – www.realestate-laketahoe.com
If you have any questions or would like to inquire about a property please contact Kelly Smith and his team at Century 21 Tahoe North Realtors by phone or email –