Bank Owned Properties in South Lake Tahoe

A new foreclosure listing in South Lake Tahoe has just been added to the mls. If this home interests you at all, call Brent or Jill  as soon as possible. I expect this new listing to sell very quickly!

806 Stanford Ave. Offered at $295,000

806 Stanfordis a bank owned foreclosure in South Lake Tahoe located in the Al Tahoe area. This 3 bedroom , 2 bath, 2 car garage 1300 square foot home has been remodeled on the inside and has  a newer roof. Pine accents, a river rock fireplace, and wide plank laminate flooring give this home a warm “Tahoe Feel.” Skylights throughout brighten this open floor-plan. The bathrooms are clean but have not been updated. There is a missing stove, refrigerator, and a few minor repairs needed. The last sale of this home took place on 5/24/07 when it sold for $493,000.

• Energy Star rated natural gas forced air furnace
• River rock gas fireplace
• Log accents
• Flat fenced lot
• Open floor plan
• Great Al Tahoe location!

 

There are only 7 foreclosure listings in South Lake Tahoe out of 27 that are not currently in escrow. If you would like to take a look at this bank owned home, please call Brent and Jill Johnson at (530) 416-2625.

If you have any questions regarding foreclosures in South Lake Tahoe, South Lake Tahoe real estate, or South Lake Tahoe mls listings, contact us today!

 

South Lake Tahoe Homes Foreclosure Auctions

If you are thinking about purchasing a property at a lender foreclosure home auction, make sure that you read the fine print!

I recently received a phone call from a gentleman from the Bay Area who was very excited about a foreclosure in South Lake Tahoe that was going to auction on January 31. The bank owned house was located at 1031 Bowers Ave. I knew about this house because it is currently listed on the South Lake Tahoe MLS. He was planning on going to the auction in Sacramento and bidding on the home sight unseen! He had asked me if I knew anything about the house and, If I could go take a look at it for him. I had to explain to this person that he would need to hire a licensed home inspector to give him detailed information about the condition of the home. I don’t think that he was willing to spend the effort or the money to do the proper investigation that a home buyer really should do. He told me that the auction company had printed on the auction booklet that the house on Bowers was worth $507,000 and that the starting bid was going to be $159,000!

After hearing the starting bid price for the foreclosure, I figured that I had better take a closer look at the house. I started with the MLS information. 1031 Bowers is a 5 bedroom, 4 bathroom, 1 car garage home in the Bijou area currently priced at $399,000. The auction company said it was previously valued at $507,000? What they mean by “previously valued to” is HIGHER of one of the following:  

a) The appraised value of the property in connection with the most recent mortgage on the property. How far back do they go?

 b) The most recent asking price, OR

c) The most recent broker price opinion.

Ok, so you may be thinking that $159,000 is still a steal compared to $399,900. Maby it is? Lets look at some statistics. The average days on market for a foreclosure in South Lake Tahoe is 86 days. Bowers has been on the market already for 130 days! Why? Because of the property condition. To the average person the house may look OK. I am also a general contractor so I look a little deeper. The first thing that I noticed is that the house has an old shake roof that needs replacing. Replacing a roof on a 2416 square foot homecould cost over $20,000. The next problem is that the house does not have a foundation! Adding a foundation under a house that size could cost over $50,000! The other problem with a house without a foundation is financing. The auction company may finance the house, but if you want to sell it in the future, you would probably have to find an all cash buyer that is willing to buy a house with no foundation. Good luck! Maby there is a reason that this house did not sell on the MLS, and now must be sold at auction!

Still thinking it is a great deal? Here are some more disclosures about purchasing a home at a lender foreclosure auction that you need to take into consideration.

• “Buyers Premium”  -Most lender foreclosure home auctions add on a 5% buyers premium to the winning bid price. If the winning bid is $300,000, you really pay $315,000.
• Closing costs- Winning bidders are responsible for paying all closing costs including closing/escrow fees, title fees, loan fees, doc fees, transfer tax, and HOA fees.
• Financing- No financing contingencies shall be applicable to any properties in the auction.
• “As Is And With All Faults”-All auction properties are sold in “As Is” condition.
• Property Inspections- All property inspections are to be preformed prior to the auction. The auction company recommends that you have a licenced home inspector inspect the property. This could get expensive if you are planning to bid on multiple properties.
• Contingencies- No sale will be contingent upon inspection of the property after the auction and no properties will be open for inspection or access after the auction until escrow has closed.

What about selection?

In this particular auction there are plenty of houses available in Las Vegas, Henderson, and Reno. but 1081 Bowers is the ONLY available house for sale in South Lake Tahoe!

By the time you add up all of the repair costs, closing costs, and hassles of buying a foreclosure at an auction, it may not be worth it!

For more information about houses for sale in South Lake Tahoe, foreclosures on the South Lake Tahoe MLS, or any Lake Tahoe Real Estate, contact Brent and Jill Johnson today!

Foreclosures for Sale in South Lake Tahoe

 

3510 Deer Lane $319,000

This bank owned property in South Lake Tahoe is located in Bijou close to the Bijou golf course, Heavenly Valley Ski Resort, and shopping. On a 10,477 square foot lot, this is a 3 bedroom, 2 bath, 2 car garage home. As with all foreclosures, this is an “as is sale.”

• Large 10,477 square foot lot
• 3 bedroom, 2 bath, 2 car garage
• 1416 square feet
• centrally located
• foreclosure in South Lake Tahoe

 

For more information about bank owned properties in South Lake Tahoe, South Lake Tahoe Real Estate, or the South Lake Tahoe MLS, please contact Brent and Jill Johnson today!

Featured properties may not be listed by the office/agent presenting this brochure.
Info deemed reliable but not guaranteed. DOM may not reflect total days property has been on market
Copyright ©2009 Rapattoni Corporation. All rights reserved.

Foreclosures in South Lake Tahoe and Current Interest Rates

Lenders have been busy with homeowners refinancing now that mortgage interest have hit record lows. Interest rates have continued to drop for the 11th straight week. A 30 year fixed rate loan dropped from 5.01% to 4.96 last week.

The current low rates will not only help homeowners (who can qualify!) reduce their monthly payment, but should also stimulate buyers to write offers on the houses that they have been following throughout the winter.

One of the main factors causing the interest rates to drop is the Federal Reserves plan to buy up mortgage-backed securities on the secondary market. In December the Federal Reserve announced a plan to buy up 500 billion dollars of mortgage securities backed by Freddie Mac, Fannie Mae, and Ginnie Mae.

The falling interest rates are a great start to the recovery of the national housing market. According to the NAR, for every 1% decrease in interest rates, we would see 500,000 additional home sales over a one year period. Increasing sales by this amount would decrease the number of homes for sale from a 10 month supply to a 7.5 month supply. Historically, economists consider a supply  of between 5.5 and 7 months to be a balanced market. 

Low interest rates probably will not prevent many foreclosures because the homeowners in distress most likely will not qualify for a refinance, but the rates should stimulate more buyer activity. Once buyers snatch up the foreclosures on the market, they may be tempted to go after the rest of the non-foreclosure housing inventory.

 

 

 

 

 

 

 

 

For more information about bank owned properties in South Lake Tahoe, South Lake Tahoe Real Estate, or any properties on the South Lake Tahoe MLS, please contact Brent and Jill Johnson Today!

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