Short Sale Sellers Beware!
May 12, 2009
According to the National Association of Realtors, an increasing number of lenders are going after borrowers who sell their homes for less than they owe – known as a short sale - in order to recover more of the difference between the amount owed and the sale price.
In order for short sale sellers to protect themselves from lenders trying to recover lost money in the future, it is essential to have a note satisfaction and/or lien release and verbiage that the loan amount is paid in full. This release should be in the short sale approval letter. If there is no such verbiage in the approval letter, it should be requested. If there is more than one loan on the property, there should be a satisfaction and/or lien release from all lenders involved.
Short sales are not for everyone. Lenders say the factors that they consider when they decide to seek more money are:
How large was the unpaid debt? Lenders are more likely to go after a large loss than to bother with a small one.
Was the property an investment or a personal residence? Lenders have less tolerance for short sale sellers
How much money does the borrower make and what other assets does he have? If the short sale seller has other assets to go after, the lender will be more inclined to make an effort to recover their lost money. This also brings up the question if the seller could have some how made the payments, or just sold as a short sale to cut their losses?
What is the policy of the mortgage insurer or the holder of the second lien? When there is a second lien involved, the second lien holder usually will only get pennies on the dollar and will take a big loss in a short sale.
A PMI Group Inc. spokesman says the mortgage insurer “primarily target[s] borrowers who are not experiencing hardship – but those who simply elected to walk away from the property due to its decline in value.”
If you are considering selling your home as a short sale in South Lake Tahoe make sure to speak with your accountant first. For more information regarding short sales in South Lake Tahoe, South Lake Tahoe real estate, or foreclosures in South Lake Tahoe, give Brent and Jill Johnson a call today!
Source: The Wall Street Journal, Ruth Simon (04/30/2009)
South Lake Tahoe Foreclosure and Short Sale Listings Search on my Website!!!
May 7, 2009
There is a new search option now available on my website that enables you to search for foreclosures and short sale listings on the South Lake Tahoe MLS! This new search tool will enable buyers to search only for foreclosures and short sales. If you would like to sign up for new listing notifications just click on the link and create a new user. The South Lake Tahoe Foreclosure listing search and the South Lake Tahoe short sale listing search option will look just like this:
| Including the above criteria, only show me properties that: |
are Short Sales |
are REO / Bank Owned (Foreclosures) |
Be aware that if you check the boxes for either foreclosure or short sale listings, you will only receive new foreclosure listings and short sale listings. If you would like to receive all listings including foreclosure and short sale listings, you can either leave the boxes un-checked, or you can set up two separate searches. If you are already signed up for new listing notification, you can still
log into your account and create another home search for foreclosures and short sales only.
With 25 foreclosure listings on the South Lake Tahoe mls and all but 4 in escrow, buyers are finding in important to act quickly when a foreclosure comes onto the market. This new foreclosure and short sale listing search tool on my website will enable you to act quicker and get a good buy on a foreclosure or short sale listing.
If you have any trouble with the new short sale and foreclosure search tool please call Brent Johnson at (530) 416-2625. I hope that you take advantage of this great new feature on my website!
South Lake Tahoe MLS Listings from $400,000 to $500,000
May 6, 2009
The South Lake Tahoe real estate market is very active in the lower price ranges, and is now picking up 
above $500,000. The $400,000 to $500,000 range is still one of the areas that is still seeing a limited amount of buyer activity.
Currently there are 463 single family home listings on the South Lake Tahoe mls. Out of the 463 listings, 72 are in escrow which is about 16%. There are 61 homes listed between $400,000 and $500,000. and 6 of them are in escrow which is only about 10%.
For the homes listed between $400,000 and $500,000, the average listing price per square foot is $275. So far this year there have been 16 houses that have sold in this price range on the South Lake Tahoe mls. The average price per square foot for the sold homes was $238. The median selling price was $427,000 and the average selling price was $436,250. There were only 4 foreclosures in South Lake Tahoe that have sold in the $400,000 to $500,000 price range. With only 4 of the 37 South Lake Tahoe foreclosures that have sold so far this year being in the $400,000 to $500,000 price range, this range has a low percentage of the foreclosure market.
I have chosen 4 homes on the South Lake Tahoe mls between $400,000 and $500,000 that I think have a good value.
1802 Amador is a short sale listing in Montgomery Estates offered at $429,000 which comes to $175.25 per square foot. This home was previously sold for $670,000 on 6/23/05. Montgomery Estates is one of my favorite areas because it is close to Heavenly Valley Ski Resort and not far from Stateline and the Casinos. There are a lot of larger and newer homes in this area. 1802 Amador is a 2448 square foot 3 bedroom, 2.5 bathroom, 2 car garage home with upgrades and is in good condition.
3503 April is not a short sale or a bank owned foreclosure, but has an outstanding location near Heavenly Valley. This home also backs to U.S. Forest Service Land. This 2146 square foot 5 bedroom, 2.5 bath, 2 car garage would make a great vacation home or a vacation rental. Offered at $495,000, this home is has a list price per square foot of $230.66
1542 Ormsby is a bank owned foreclosure listing with a great meadow view location. This bank owned listing is a 4 bedroom, 2 bath, 1 car garage, 2323 square foot home priced at $419,000. At only $180.37 per square foot, this meadow and mountain view home has great potential to be upgraded.
709 Gardner is a newer (1999 construction) 3 bedroom, 2.5 bath, 2 car garage home that has been rarely been used and is in great condition. This newer home is priced at $429,000 and is $210.09 per square foot.
For buyers in the $400,000 to $500,000 price range, there is a great selection of listings on the South Lake Tahoe mls. With not a lot of competition in this price range, buyers will have a chance to negotiate a good price on a home that works for them. Make sure to keep checking on my current list of foreclosures in South Lake Tahoeto see any new foreclosure listings on the South lake Tahoe mls.
If you would like to find out more about the South Lake Tahoe real estate market, foreclosures in South Lake Tahoe, the South Lake Tahoe mls, or would like to set up an appointment to view properties in South Lake Tahoe, contact Brent and Jill Johnson today!
The True Costs of Owning Real Estate in South Lake Tahoe
May 4, 2009
With all of the first time home buyers and investors diving into the South Lake Tahoe real estate market, I figured that I would write a blog post about all of the costs that should be taken into consideration before purchasing a home. In this blog post I will go over the costs associated with purchasing and owning a home in South Lake Tahoe. With the most active recent price range being under $300,000, I based my costs on a 
single family home with a sales price of $300,000.
When owning a home in South Lake Tahoe, you need to be aware that there are more expenses than just your mortgage payment and taxes. Other expenses include the South Lake Tahoe Public Utility District (water and sewer), the South Tahoe Refuse (garbage collection), Taxes, Insurance, Maintenance, possible snow removal and landscaping.
The South Lake Tahoe Public Utility District charges $231.01 per quarter for water and sewer fees in the City of South Lake Tahoe. Water use is not metered at this time and is charged as a flat rate.
The South Tahoe Refuse charges 65.28 a quarter for trash pick-up. It is mandatory in South Lake Tahoe to have trash pick-up even for vacation homes and vacant homes.
The real estate taxes are based on the purchase price and are about 1.1%
Hazard insurance is a must, and is a requirement if there is going to be a loan on the home.
It is a good idea to have a snow removal company clear your driveway in the winter for second homes. The snow can really pile up and get as hard as concrete if it is not cleared often. Second homeowners will also want to consider hiring a landscaper to keep their yard looking nice during the summer.
Homes in South Lake Tahoe are exposed to a harsh environment and will need regular maintenance and up-keep. Wood houses will need to be stained every 3 to 5 years and paint grade houses should be painted every 5 to 10 years. Furnaces and water heaters should be serviced annually and chimneys should be cleaned
to prevent chimney fires. All other normal maintenance costs should also be taken into consideration.
Here is a breakdown of the costs associated with purchasing a $300,000 home in South Lake Tahoe. The title and escrow fees were provided by Placer Title. I used a conventional 30 year 80% loan of $240,000 at 5% interest amortized over a 30 year period.
Buyers Estimated Net Sheet
123 Main Street
Charges Credits
Sales price $300,000
New Loan $240,000
CLTA Standard Title Policy, 1/2 Buyer $486.50
ALTA Loan Extended Coverage Policy $441.50
Recording Fee $75.
Escrow Fee, 1/2 Buyer $485.
Outside Notary Fee if Applicable $125
Hazard Insurance $800
Termite Report $200
Home Inspection $300
______________________________________________________________________________________
******SubTotals******
Due From Buyer $302,912.50 $240,000
$62,912.50
Totals $302,912.50 $302,912.50
Including the hazard insurance, there would be $3,112.50 in closing costs to purchase the home. There would also be prorations for the taxes, refuse, and water and sewer on the closing statement.
The monthly costs associated with owning the house in South Lake Tahoe are as follows:
Mortgage payment on $240,000 at 5% $1288.37
Taxes based on a $300,000 sales price $275.
Hazard Insurance $66.67 ($800/12 months)
Water and Sewer $77. ($231.01/ 3 months)
Refuse $21.76 ($65.28/ 3 months)
_____________________________________________________________________________________
Total Monthly Cost $1,728.80
I did not include any snow removal or landscaping in the monthly cost because they are optional. I also did not include any maintenance costs because they are variable, but should also be considered. One last consideration would be any costs associated with the loan such as loan origination fees, appraisals, ext..
It is a great time to purchase real estate in South Lake Tahoe, but first you should make sure that it is in your budget. Buyers who are planning on purchasing a home and renting it out will most likely not be able to cover all of the costs associated with owning the house. There will probably need to be some money invested by the owner in order to cover all of the holding costs. Purchasing a home in South Lake Tahoe may still be a great investment if you purchase a home with the current low values and low interest rates. Once the market rebounds, owning a house in South Lake Tahoe could be an incredible investment!
Please call Brent and Jill Johnson for more information regarding South Lake Tahoe real estate today!
South Lake Tahoe Real Estate Deals Under $400,000
May 3, 2009
Out of the 59 single family listings on the South Lake Tahoe mls priced between $300,000 and $400,000, I 
South Lake Tahoe Real Estate deals under $400,000
776 Panther St, is a bank owned property offered at $324,000. This house has been on the market for 118 days, and was first priced at $369,900. This house is a 2240 square foot, 4 bedroom, 3 bathroom, 1 car garage home in the Gardner Mountain area. The inside of this home has been remodeled by the bank and looks great. The inside is very clean with new carpet, vinyl, and paint. The bedrooms are large, and the master bedroom is huge! This house is a little plain on the inside, but could easily be dressed up. The exterior needs a little work, maybe some paint and deck repairs. At only $145,00 per square foot, this house is priced well below the competition. The average list price per square foot of the other South Lake Tahoe homes between $300,000 and $400,000 is $256.
1286 Mt Rainier is a bank owned foreclosure out in the county on a 31,799 square foot lot. Built in 1983, this 4 bedroom, 3 bathroom, 1 car garage home is priced at $369,900. This house needs a little TLC and is near the Angora Fire area, but is priced well at $186.54 per square foot. This house has been on the market for 38 days now. I would keep an eye on this home, if it does not sell soon I would expect the bank do drop the price. This good deal could end up being a great one.
2177 Harvard is neither a foreclosure or a short sale. This home is my listing, and is a great value. This 3 bedroom, 2 bath, 2 car garage home is located in the Tahoe Island Park area. Completely remodeled on the inside, the floor plan is bright and open. There are granite slab counter tops, Maple cabinets, and tile flooring. This home was voted the South Lake Tahoe mls home of the week priced at $399,950, and is now priced at $379,000! I think that this is one of the best priced city Houses for sale in South Lake Tahoe!
Looking at South Lake Tahoe real estate on the mls or on the Internet can sometimes be deceiving. Houses that look good on the computer screes can just have great pictures, or great homes can have bad pictures. This makes having a real estate agent very important in helping you with your search for real estate in South Lake Tahoe.
If you have any questions regarding any of the houses for sale in South Lake Tahoe that you have been seeing on the Internet, please call Brent and Jill Johnson today!
