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Mammoth Short Sales

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Mammoth Short Sale ListingsResearch Before You Buy

A Guide to Short Sales in Mammoth

At Resort Property Realty, Inc. we believe that it’s very important to keep our clients informed and that is why we publish information like what is found in this post. This is not meant to dissuade people from buying Mammoth Short Sales. In fact our intent is to inform you of some of the difficulties associated with buying a distressed property so that you are not blind sided during the process. Short Sales, Foreclosures and REO’s (Bank Owned Real Estate) can be really great real estate opportunities. But they can also be lengthy, frustrating processes. It is important to know more about the process before you decide to buy a Mammoth Short Sale. Below are some issues that you may run into when buying a short sale property in Mammoth Lakes, CA.

  1. Seller Motivation: In a normal home sale the seller is motivated to sell their property. This motivation leads them to improve the quality and appearance of the home. However, in a short sale situation the seller often has different motivations. They may intend to draw out the process so they can stay in their home longer or to get out of the financial obligation to pay off their mortgage. This typically means that they are much less concerned about fixing up the home and may be less cooperative about showings. In Mammoth Lakes, apposed to other cities in the US, many properties are second homes which can sometimes mean that the homes are vacant for showings.
  2. Delays: Short sales require that the home owners submit their financials to the bank each month. If that information is withheld the sale can stall. Although the process has sped up as of recent, these types of delays can extend an already somewhat lengthy process, sometimes making Mammoth Short Sales difficult to buy and sell. Mammoth Short Sale approvals typically take 30-60 days. If you are looking to purchase a home very soon Mammoth Short Sales might not be right for you. We would recommend a more traditional real estate purchase or and REO property as the process is much faster. If time is on your side, Short Sales can be very affordable and in perfect locations. This is often the case since many of the home buyers in Mammoth Lakes are looking for a second home.
  3. Pricing: Short Sales in Mammoth Lakes are often priced aggressively low to compensate for the more lengthy process. This means that if you do have the time to go through a short sale process, they can be very affordable. However, bidding wars can often drive the price up.
  4. Buyer Preference: In the past buyers would shy away from short sales because of their uncertain reputations. Because of the lower demand for short sales, they would usually sell for a lower price. In recent history interest in short sales has increased, especially in Mammoth Lakes, CA. Because of this increased interest there is more competition for cheap Mammoth short sales. They are still priced low but there are a lot more buyers looking to buy the distressed properties.

 
View Mammoth Short Sale Listings and Contact Us if you have any questions about Short Sales in Mammoth Lakes. Below is some basic information about REO (Bank Owned Real Estate) that you will find in the next post to our Mammoth Real Estate Blog.

  • REO’s are always vacant which makes showings simpler.
  • It only takes a week or two to get a REO listing into escrow, with deals closing in about 30-45 days.
  • REO listings are appraised by neutral third parties and priced for retail sale by asset managers who have a fiduciary duty to their investors to maximize return. This means that they are not always extremely cheap but they are priced properly and affordably.
  • There is high demand for REOs because bank owned properties enjoy the reputation of being underpriced, even though they have been selling well for years.

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