Lake Tahoe Short Sales

Lake Tahoe short sale properties are becoming increasingly more common and more successful. Short sales are property sales in which both the lender and the seller agree to sell the property for less than what is owed on the property. Neither party is doing the other a favor by selling short of what is owed. It is a business transaction, and lenders will rely on the appraisal of the property, or more commonly a Broker Price Opinion (BPO), and the closing costs, including Realtor fees, to determine if a short sale will be more cost effective than a lengthy foreclosure.

Despite the name, short sales are far from a “short” time-line, and the process can be quite lengthy, on average about 5 months. Usually, the process doesn’t even begin until the offer is received. Once an offer has been received and agreed upon, the Realtor, or a third party short sale negotiator, will submit the offer to the lender for approval. Lender has an option to counter, accept, or decline, and if it is accepted then a letter with conditions will be issued by the lender, usually to include a deadline, closing cost allowance, and always preventing the seller/borrower to profit from the short sale. If there is a junior lien, such as a HELOC or a second home mortgage, then the offer has to go for an approval by them as well.

By nature all short sales will result in a deficiency balance. Sellers in Lake Tahoe have to be aware that California is a recourse state, and a deficiency judgment can be filed against them, so they should review the documents with an attorney and a CPA.

Buyers of Lake Tahoe short sales need to be aware that once an offer is submitted and approved by the seller, without a lender approval this property will still be marketed, but with ACTIVE CONTINGENT status in the Lake Tahoe MLS, and seller may receive and submit other offers to the lender. Short sales can be very frustrating for the buyers, as they are quite lengthy and there is no guarantee that they will be accepted, but the reward is usually a great home well under market value. Short sales are also a great alternative to Lake Tahoe foreclosures, as short sales generally have less competition, so if you are tired of getting outbid on foreclosures and are not in a hurry, a Lake Tahoe short sale is great for you!

North Lake Tahoe Short Sales
West Lake Tahoe Short Sales
Tahoe City Short Sales
Alpine Meadows Short Sales
Squaw Valley Short Sales
Truckee Short Sales
Northstar Short Sales