REO stands for a lender owned property, usually one owned by a bank where the property didn’t sell at an auction and was returned to the bank.  An REO is a property where the bank has taken the property back from a borrower that was not been able to pay his mortgage.   This is a situation that banks try to avoid since they now have to maintain the property and it is estimated that that figure can be $200,000 or more.  Banks are anxious to be rid of these properties since they are always a liability and must be maintained until sold.  One of the usual developments with an REO, and one which the banks fear, is that the property is vacant and in the case of certain subdivisions, having a number of    these homes, the properties soon become downtrodden in appearance, thus  loosing value and become uninviting to buyers.

               

     While the Truckee/Lake Tahoe area has it’s share of  REO’s as well as other distressed properties on the market, we consider ourselves more fortunate than a number of other areas that have literally thousands of distressed properties on the market.  The Truckee/Lake Tahoe region has always been a favorite playground for city and valley folks.   These people are taking this opportunity to buy properties at a discounted rate, since many home prices have been rolled back to 2003 levels   .

Don Schaller

Broker/Owner

Schaller Family Realtors

Dickson Realty, Truckee

dschaller@suddenlink.net