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Brents New MLS Listing in Carson City

Just Listed in Carson City Nevada!

3596 Haystack

 

This well maintained Sunridge home has an open and spacious floor plan. The master bedroom has a large master bathroom with a jetted tub. This home backs to open land and is close to shopping and schools. This 1579 square foot 3 bedroom, 2 bath, 2 car garage home was built in 1994.

  • Offered at $204,000
  • Forced Air Heating
  • Double Pane Vinyl Frame Windows
  • Fully Landscaped With Automatic Sprinklers
  • Single Level Home
  • Not a foreclosure or a short sale!!!
  • Much More!
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Short Sales In South Lake Tahoe

Short sales are becoming more and more common across the country. A short sale occurs when a lender agrees to accept less than what is owed on the property as payment in full. Short sales have become common due to the decrease in home values, and the popularity of low and no down loans during the recent real estate boom.

Here is an example of an active short sale on the  South Lake Tahoe MLS:

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1835 Mohican

This home was listed previously for $1,199,000. This is a five bedroom, three and one half bath, three car garage, 3300 square foot home.

This home was recently re-listed for $769,000 as a short sale, and soon after sold for $780,000!

One thing to know about making an offer on a short sale is that your offer may take weeks or even months to get a response from the bank. If the seller and the listing agent have done their job, and submitted a complete short sale package to the lender prior to listing the home, this time period should be shortened. If the seller and the listing agent have not contacted the bank and have not submitted a short sale package, I would be wary of wasting your time with an offer.

A short sale can be a beneficial situation for every one involved. The seller will be getting out from under a payment that he or she can no longer afford, the buyer may be purchasing the home below the current value, and the bank will not have to foreclose on the owner.

The down side to a short sale is that the seller will be damaging their credit score and the bank will be loosing money on the loan discount. Another possibility with short sales is that after a long wait for lender approval, your offer may be declined, and you will have wasted valuable time in this buyers market.

 Here is Wikipedias definition of a short sale:

Short sale (real estate)

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 This article needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (September 2008)

In real estate, a short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold.[1] In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank’s Loss mitigation or Workout department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Many Short Sales leave a deficiency balance for which the Mortgagor / Borrower is still liable. In 99% of all cases it is not a settlement-in-full. A deficiency balance will remain while the mortgage broker, real estate agent / broker, loan officers, title and closing agents retain their profit. No regulatory agency governs this hybrid transaction.

Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower’s financial situation.

A short sale typically is executed to prevent a home foreclosure. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. A short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

Short sales are common in standard business transactions in recognition that creditors are not doing debtors a favor but, rather, engaging in a business transaction when extending credit. When it makes no business sense or is economically not feasible to retain an asset, businesses default on their loans (called bonds). It is not uncommon for business bonds to trade on the after-market for a small fraction of their face value in realization of the likelihood of these future defaults

Short Sales In South Lake Tahoe

Short sales are becoming more and more common on the South Lake Tahoe MLS. A short sale is when a homeowner owes more on their home than the home is worth, but their bank agrees to accept less than what is owed as “payment in full” to avoid the foreclosure process.

A lender may be willing to cut their losses with a short sale to avoid the costly and time-intensive foreclosure process.  Most lenders must to have five to six times the value of their foreclosure properties on their books. This further reduces the amount of money the lender can loan out and earn interest on. Lenders would rather have that money working for them!

In order for a homeowner to qualify for a short sale they must prove that they are having a legitimate hardship. The lender will want to see a letter stating what the  hardship is. The homeowner must have little or no equity in the home, usually less than 8%. Some lenders will require the homeowner to be behind on payments. Other items lenders require are the last two months bank statements on all accounts, pay check stubs, authorization to release information, and the last two years tax returns.

When purchasing a short sale in South Lake Tahoe there are some important things to remember. Once your offer is accepted by the seller, the bank could take weeks to respond. This can be very frustrating for buyers, not knowing if they will be getting the house. In most cases, short sales will be “as is” sales. The sellers probably will not have enough money to make any repairs that the buyers may ask for, and the lenders usually will not do any work. In many cases, the  hassles can be worth it financially!

It is important to be knowledgeable about the short sale process so that when you write an offer on one you know what to expect. There are some great short sales and foreclosures on the South Lake Tahoe MLS. Take a look at my website bjohnson.idxcentral.net/blog to search the South Lake Tahoe MLS for some of these deals!