Short sale listings in South Lake Tahoe have become a big part of our real estate market and are not going away any time soon. Close to 20% of the South Tahoe Real Estate listings are currently short sale listings.
A Short Sale is the term used to describe a real estate transaction in which the sale proceeds fall short of what the seller owes on the property’s loan. Instead of buying from a seller, you are purchasing the property directly from the lender. Although you are buying the property from the lender, the seller must first accept a suitable written offer from a buyer.
Once an offer has been accepted by the seller, it is sent to the lender for approval. Along with the offer, the seller and listing will submit a short sale package which includes information such as the sellers financial statements, listing information, a hardship letter, and many other various forms.
Short sales are often difficult transactions taking considerably longer than a typical transaction to complete. There is also no guarantee that the lender or lenders will agree to the terms of the purchase offer or that they will respond at all. Once the short sale package has been submitted, it may take many weeks or months for the lender to respond, if they decide to respond. If the lender approves the short sale offer, the home buying process is very similar to buying a property from a regular seller. One main difference is that the property will probably sold in “As Is Condition”. Most sellers and lenders are not willing to make repairs on a short sale property.
Why Make An Offer On A Short Sale If They Are So Difficult?
Although the short sale process can be long and difficult, it can sometimes be worth the trouble. A large percentage of the Real Estate listings in South Lake Tahoe are short sales due to the decline in property values over the last few years. Many of the short sales are priced below the market value, and some lenders are approving the sales of these properties to cut their losses. Lenders know that they could loose a lot more money if the property goes to foreclosure. Many buyers have been able to get great prices on recent Short Sales in Lake Tahoe.