Lake Tahoe Foreclosures (REO)
LAKE TAHOE FORECLOSURES CURRENT LIST AT THE BOTTOM OF THE PAGE! Lake Tahoe Foreclosures (REO) Specialist – Be the first to know!
What are Lake Tahoe Foreclosures?
Lake Tahoe Foreclosures or REOs, as they are more commonly known in the real estate world, are properties that are owned by a lender, typically a bank, after an unsuccessful foreclosure auction. REO stands for Real Estate Owned, as in a bank, a financial institution, that normally doesn’t deal in real estate, owns this real estate as an non-performing asset. When a borrower defaults on a loan, a lengthy foreclosure procedure is initiated by the lender. Notice of Default has to be filed with the County Recorder, and a chance given to the borrower to settle the debt. If the borrower still fails to meet the obligation, the foreclosure auction takes place usually on the county court-house steps. The property becomes a foreclosure when an opening bid does not generate an offer, which is usually when the market value of the home is smaller than the outstanding debt (loan plus interest and fees). The lender then takes over the title … and any tenants and any other liens on the property, which could be many, such as tax liens, mechanical liens etc..
Why Buy Lake Tahoe Foreclosures (REO)?
The appeal of the Lake Tahoe foreclosures is that, as opposed to purchasing the same at a Lake Tahoe foreclosure auction, when the lender acquires an REO, 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.
Is Buying Lake Tahoe Foreclosures (REO) Difficult?
The lenders with multiple Lake Tahoe foreclosures usually have REO asset management companies that deal with all the property preservation duties, as well as local real estate brokers to help with the resale.
Many people think that Lake Tahoe foreclosures(REO) sales are complicated, when in reality nothing is different from a regular sale, other than the fact that nothing is known about the property and the lender is exempt from giving some disclosures, such as a Transfer Disclosure Statement in which a seller would usually disclose defects. These sales are not lengthy, and very possible to close in as little as two weeks, as most of the work takes place before the property is listed. Occasionally, the home needs a repair during escrow, or a new lien is discovered and that could potentially slow things down, but it does not happen very often.
What is the Process for Buying Lake Tahoe Foreclosures (REO)?
- Contact your Lake Tahoe Realtor, Olja Mihic
- Preview Lake Tahoe Foreclosures (REOs) with your Lake Tahoe Realtor, Olja Mihic
- Have a prequal letter ready from your lender, or if cash offer proof of funds to close, such as a bank statement, and a check book for a deposit
- DO NOT WAIT TO PUT IN AN OFFER! If it is attractive to you it is attractive to someone else, too!
- Put an offer in as you would on a normal property, but proof of funds to close/prequal letter required, as well as a copy of the deposit check at the time you make an offer
- Banks work Mon-Fri, and are often in a different time zone, so responses from the bank can be anywhere from the same day to a week, and some will specify a date by which they will collect multiple offers.
- Once your offer is “accepted” it is not really accepted until you have a signed contract, and will remain in ACTIVE status in the Lake Tahoe MLS. This could take a week in some cases.
- Most banks require their own purchase agreement to be signed in addition to the standard CAR Purchase Agreement, and buyers are encouraged to review with their attorney
- Most banks will only allow 7 days for property inspections
- Everything else is similar to any other sale
Few things to note about purchasing Lake Tahoe Foreclosures (REOs)… most of these homes are vacant, so in the winter if the utilities are not on, and very often they are not turned on until the inspections, it has been known for the water pipes to burst due to low temperatures, once the water is turned on, so make sure utilities are on during your home inspection.
Some, Lake Tahoe foreclosures (REOs), though not many, may not qualify for a loan, such as some condos that are in a condotel (condo/hotel) type environment, as well as homes that do not comply with lender guidelines (i.e. must have a kitchen, permanent source of heat etc.), so check with your lender. Most banks do not offer loans on the foreclosures they are selling.
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North Lake Tahoe Foreclosures/REOs
West Lake Tahoe Foreclosures/REOs
Tahoe City Foreclosures
Squaw Valley Foreclosures
Alpine Meadows Foreclosures
Truckee Foreclosures
Northstar Foreclosures
Truckee River Foreclosures
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Lake Tahoe Realtors will often know if there are Lake Tahoe foreclosures coming on to the market before they are listed, so be sure to contact Olja Mihic, your Lake Tahoe Realtor to find out! To search other listings go to Lake Tahoe Real Estate.
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By Olja Mihic, Lake Tahoe Realtor