It could be worth while on your part to discover property foreclosures in Mammoth Lakes. Whatever your reason for purchasing a foreclosure; whether to own as a vacation home, an investment property, or as a fixer upper to resell later – it does not matter, because you may find all sorts of benefits of purchasing these foreclosed properties. Searching for property foreclosures on the internet can be a quick way to discover the right property to buy. All you need is an internet connection and you can look for the best foreclosure opportunities without leaving the house, and since you are already here on my website, you can explore all the available foreclosures in Mammoth Lakes and the Eastern Sierra.
A pre-foreclosure home is a property that is delinquent on mortgage payments. Before the lender forecloses on the property they generally get in touch with the owner and try to work out a plan to have the owner try to bring the loan current. If the owner isn’t able to bring the loan current the lender will follow the foreclosure process which starts with filing a Notice of Default. Once the lender files the Notice of Default the owner has 90 days to bring the loan current. If the owner is unable to bring the payments current, a Notice of Trustee’s Sale will be scheduled for the home to be sold at public auction.
During the pre-foreclosure period prospective buyers interested in the property have an opportunity to purchase the property from the buyer before the home is foreclosed on by the lender. By selling the home the owner can use the money to pay off their current mortgage, and get out from under the debt.
This isn’t always so easy, as many homes today have negative equity and the owner is unable to sell the property for an amount that would satisfy the current mortgage on the property. In the situation that the home is worth less than the current mortgage, the seller is able to sell the home as a short sale. In a short sale the lender would approve to accept payoff on the home for less than the current mortgage, therefore a buyer would be able to purchase the home at fair market value.
These short sale properties are great opportunities for buyers, but they may take extra effort and time to work through the short sale process. Mammoth Lakes has a unique market for short sale homes, although not as bloated as some real estate markets across the country, there are still short sales in Mammoth Lakes that are priced to sell.
Properties Available At Public Auction
Public auction, also known in California as the Trustee’s Sale, is the final step of the foreclosure process. At auction the public has an opportunity to bid on and purchase the foreclosed property. The property goes to sale with a minimum bid, and this is generally the lowest price the lender will accept to sell the home. There are pros and cons of purchasing a home at auction, and it is recommended that buyers understand the process to have a successful purchase and experience.
Before the auction, set your budget and stick with it. Research the property, the location, and have a thorough understanding of what is required at the auction sale. Have your finances in order, and show up to the auction with money in hand, as many auctions require that the purchase is paid in full at the time of the auction. Financing may be acceptable, and buyers should contact the title company and/or court house to request specifics on the terms of payment.
Another type of auction is when the property was listed for sale on the open market, however was not sold. At times if the property was not sold, it will go to auction. This is an opportunity to acquire a property at a great bargain. These auctions are usually very busy with ready and willing buyers. The same rules above apply, most important having some knowledge of the property, and a budget to stick to. These auctions are fast paced and full of energy, and with a little luck you will find a fantastic property at an incredible value. There have not been many property auctions in Mammoth Lakes, but when there is they tend to be purchased well below market value.
Bank Owned Real Estate Also Known As REO
An REO property is bank owned real estate. If at the public auction the property is not sold, or the minimum bid is not met, the property ownership will revert back to the bank that held the mortgage. Once the property goes back to the bank, the bank will assign a local Mammoth Lakes real estate agent to manage, list, and sell the property.
Buying an REO is the most hassle free transaction of the foreclosure types listed in this article, and is not much different from buying a property from any seller. The main differences are as followed; the property is typically sold in as-is condition, the seller is exempt from some seller disclosures as they have never lived in or physically been in the property, and there is little room for negotiations after the contract is executed, as the property is being sold in as-is condition.
REO homes in Mammoth Lakes come in a variety of price ranges, conditions, and locations. There are multi-million dollar homes with expansive views and beautiful craftsmanship, newly remodeled condos centrally located in town, condos with slope-side access, and properties that will need a little TLC that can be purchased in the low $100K range. There have been luxury homes located on the golf course, beautiful homes and condos within walking distance to Eagle and Canyon Lodge, and turn key properties located on the shuttle route and just a short walk into town.
The inventory of REO property foreclosures in Mammoth Lakes fluctuates throughout the year, but the bargains always go fast, and to make sure that you are in the loop when new properties hit the market it is a good idea to work with an agent that knows the inventory and can alert you when new properties are listed. Having this knowledge of the market may be the difference between getting the property you’ve been waiting for or having to wait for the next one. It seems that there is always the next one, but are you patient enough to wait!
So Which Property Foreclosure Is The Best To Buy?
When searching for property foreclosures in Mammoth Lakes you have the option of pre-foreclosure homes, buying properties at public auction, or working with a real estate agent for buying REO properties. Deciding to purchase one of these property foreclosures can be a great experience, but each one has pros and cons, and the one that is best for you, well that is for you to decide. Great bargains can be found through any of the three foreclosure types discussed in this article, and when buying property foreclosures in Mammoth Lakes, remember to do your due diligence, and make sure the property is going to provide the perceived value you may be looking for.