Our goal at Resort Property Realty is to help home buyers and sellers learn about their options for buying and selling Mammoth Lakes REO’s, Foreclosures and Short Sales. The terms REO’s, Foreclosures, and Short Sales often get used interchangeably but they are quite different. A REO, or bank owned property, describes a property owned by a lender after an unsuccessful sale at a foreclosure auction. One thing is common with all of them, you can get a great deal, but in today’s recovering market, those great deals are getting harder and harder to come across. Mammoth Lakes has fewer bank owned properties than much of the rest of California which means that there is a lot of competition for them. In the past few years the bank owned REO’s have decreased significantly and we only have a few, if any, at any given time on the market. The best buys are usually bought within days of being listed and it is for that reason that if you are in the market for a Mammoth REO property you should contact us and let us know. This way we can ensure that you are aware as soon as a new property comes available on the market. We would be happy to notify you by email whenever any REO (bank owned) property comes on the market within your search criteria.
People often call bank owned, or REO property a foreclosure. However a foreclosure is the process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership of the property securing the loan. The foreclosure process begins when a borrower defaults on the mortgage payments and the lender files a Notice of Default. The lender can take ownership through an agreement with the borrower during pre-foreclosure, or the property will be sold at a public auction. Buyers often are required to pay in cash at the auction and may not have much time to research the title and condition of the property beforehand. The lender typically sets a minimum bid at foreclosure auction equal to the amount owed on the property plus fees and various costs to the lender. Sometimes a buyer can get a great deal at a foreclosure auction, but buying a property this way can be very risky. If you are interested in a property that is going to a foreclosure action, please contact us at Resort Property Realty so we can assist in the process.
Short Sales in Mammoth Lakes are about as rare as a bank owned or REO property. A short sale is when the owner owes a lender more than the property is currently worth, and sells the property with the bank’s approval for proceeds less than the value of the loan. In a short sale transaction you basically have two sellers (the owner and the bank). Short sales listing prices are set by the owner, so they tend to be set lower than market value to entice buyers into enduring the short sale process. The accepted offer between the seller and the buyer is presented to the bank along with many other documents, and it is ultimately up to the bank on the sales price. Short sales are often complicated and lengthy with many frustrations; however, if you are patient it can be well worth the wait. When the market and economy first declined and short sales were abundant you could get an amazing deal, but now that the market is in the process of recovery the bank’s tend to only agree to a short sale if it is at, or very close to, market value. Due to the attractive listing prices, short sales in Mammoth Lakes tend to go into escrow fast, so please contact us at Resort Property Realty, to get on our update emails for new listings within your search criteria.