Lake Tahoe Foreclosures

Foreclosures in Lake Tahoe have become a popular target for buyers investing in South Lake Tahoe real Estate. Foreclosure listings have become popular with buyers because they are usually priced below the current market value.

The term “Foreclosure” is actually the legal process by which the bank or lender uses to sell the property in order to satisfy the loan balance in the event of a default. In California, this process is most commonly a non-judicial foreclosure.

When a homeowner stops making mortgage payments, a Notice of Default is recorded with the County Recorder. The homeowner then has 90 days to cure the default. If the homeowner does not cure the default, a Notice of Trustees Sale  is recorded. The Notice of Trustees sale states that the lender or trustee will sell the property at  auction in 21 days.

The Trustee Sale Auction is held as a public auction conducted by the lenders representative. The winning bidder must pay with cash in the full amount of the bid. The lender usually bids in the amount of the balance due plus costs. If no one else bids higher than the lender, the property reverts back to the lender. Once the property reverts back to the lender it becomes an REO.

Why buy an REO?

An REO property is an investment  gone bad to a lender, so REO’s represent a loss to the lender. Real Estate holding costs are expensive and will add to the lenders loss. In order to get money loosing assets off of the books, lenders will price REO’s ( foreclosure listings) to sell quickly. Most of the foreclosure listings in South Lake Tahoe are priced below the current market value. Many times the foreclosures are priced low enough to attract multiple offers.

Purchasing a foreclosure that is listed on the South Lake Tahoe MLS is similar to purchasing a property from an individual seller. Buyers can finance foreclosures just as they can finance re-sale and new homes. Buyers will also have an inspection period that ranges from 10 to 17 days to to any property  inspections that may be  necessary.  Delinquent tax and utility liens will be cleared by the seller, and buyers are issued a clear title and title insurance.

 Most foreclosures are sold in “As Is Condition” which makes a Home Inspection and a Termite Inspection very important.  If problems are found in the inspections that are more costly than anticipated, the buyers can back out and the initial deposit will be refunded, less any inspection expenses. REO property owners are exempt from providing a Transfer Disclosure Statement or a Natural Hazard Disclosure. The seller is exempt from these disclosures because in most cases they have never seen the property and know little about it.

Because Bank Owned Listings in South Lake Tahoe are usually priced below the current market value, they can be a great investment opportunity.  If you are interested in speaking more about foreclosures in South Lake Tahoe, please feel free to call me at (530) 416-2625!

South Tahoe Real Estate Review for November 2010

With 38 single family homes (excluding condos) sold on the South Lake Tahoe MLS in November, buyer activity continued to remain somewhat active for this time of year. Home prices seem like they are trying to stabilize as well. The average price per square foot has been bouncing around in the low $200′s over the last few months as follows:

• November 2010 price per square foot-$212
• October 2010 price per square foot-$201
• September 2010 price per square foot-$219
• August 2010 price per square foot- $207

Distress sales still seem to be dominating the real estate market in South Tahoe. Out of the 38 homes sold in November, 12 were bank owned foreclosures and 8 were short sales. 20 of the 38 homes sold (53%) were distress sales. The average price per square foot for the bank owned foreclosures was $174 and the average price per square foot for the short sales was $210. The foreclosures had an average sales price of $312,000 and a median sales price of $227,500. The short sales had an average sales price of $383,750 and a median sales price of $397,500.

South Lake Tahoe Home Sales Statistics

• There were 38 single family homes sold in November 2010, down from 42 in November 2009.
• There were 20 distress sales in November 2010, up from 15 in November 2009 and up from 15 in October 2010.
• The Median sales price was $291,250, down from $297,000 in October and down from $322,000 in November 2009.
• The average sales price was $362,934, up from $357,263 in October and down from $410,355 in November 2009.
• The average days on the market was 131 and the median days on the market was 91.
• The average price per square foot was $212, up from $201 in October and down from $227 in November 2009.
• The percentage of distress sales was 53%, up from 33% in October and up from 36% in November 2009.

The current inventory levels have also slightly improved to a more stable level. The total number of single family listings on the South Lake Tahoe MLS has stayed at 443, but the number of pending sales has gone up from 87 to 95. Currently there are 338 active homes on the market and 95 homes that are in escrow. 22% of the homes listed on the South Tahoe MLS are currently under contract. Of the 95 homes that are in escrow, 21 are bank owned foreclosure and 42 are short sales. 66% of the homes under contract are distress sales, this is down from 71% in October.

Another interesting point is that there have been a lot more multiple offer situations than there has been in a while. Last week I wrote four different offers for four different clients. Three of the four properties that I wrote offers on ended up having multiple offers in on them.

December is going to be a great month to plan a trip to Lake Tahoe to both look at properties and hit the slopes. There are some great deals currently on the market on both short sales and foreclosures. There are also new listings coming on the South Lake Tahoe MLS Daily.  The record snow that fell in November has enabled most ski resorts to open from top to bottom for some great early skiing and boarding. Heavenly Ski Resort has over 4000 acres of skiing and boarding open now which is about 85% of the mountain. Make sure to give me a call on my cell phone at (530) 416-2625 to set up an appointment to look at some homes!

South Lake Tahoe Foreclosures For Sale

Updated on 3/25/11

Below is an updated list of the foreclosures for sale in South Lake Tahoe that are listed on the South Lake Tahoe MLS. There are currently 55 single family foreclosure listings and 24 of them are in escrow. The average listing price for the foreclosures is $323,835. The current median listing price is $256,000. The average list price per square foot is $180. Just click on the address for detailed listing information about the property. For more information about any of these foreclosure listings, please call Brent Johnson at (530) 416-2625.

• 2305 Blitzen Rd.- 3 bedroom, 2 bath, 2098 square foot home in Christmas Valley offered at $384,500.
• 2616 Henderson St.- 4 bedroom, 3 bath, 2 car garage newer 2206 square foot home in Christmas Valley offered at $458,900.
• 918 Julie Lane-3 bedroom, 1.75 bath, 1568 square foot fixer offered at $142,900.
• 943 Lodi Ave- 3 bedroom, 2 bath, 1200 square foot home offered at $184,900.
• 937 San Jose Ave 1-3- Tri-plex in Al Tahoe offered at $223,900.
• 3601 Shirley Ave.- 2 bedroom, 2 bath, 984 square foot duplex offered at $134,000.
• 1482 Black Bart Ave.- 2 bedroom, 1.75 bath, 1088 square foot cabin on a large lot offered at $120,000.
• 1439 Ski Run Blvd. #C4- 2 bedroom, 1.5 bath, 1016 square foot condo near Heavenly Valley offered at $229,900.
• In Escrow! 1344 Gilmore Lake Rd.- 3 bedroom, 2 bath, 1485 square foot home on a large lot offered at $256,000.
• In Escrow! 1626 Plateau Circle- 4 bedroom, 2 bath, 2 car garage, 1680 square foot Montgomery Estates foreclosure offered at $319,000.
• In Escrow! 1911 Ibache St- 3 bedroom, 2.75 bath, 2 car garage, 2067 square foot newer home offered at $415,140.
• In Escrow! 766 Gardner- 3 bedroom, 2.5 bath, 2 car garage, 1942 square foot newer home offered at $345,780.
• 1444 Matheson- 3 bedroom, 2 bath, 1856 square foot home offered at $219,900.
• 807 Patricia Lane- 3 bedroom, 1 bath, 2 car garage, 1667 square foot home offered at $219,900.
• In Escrow! 1961 Kokanee- 4 bedroom, 3 bath, 2 car garage, 2755 square foot foreclosure in the Tahoe Keys area offered at $758,500.
• 483 Lido- 3 bedroom, 2.5 bath, 2 car garage, 2270 square foot REO in the Tahoe Keys offered at $775,200.
• In Escrow! 2500 Clipper St.- 3 bedroom, 2.5 bath, 2832 square foot bank owned listing in Montgomery Estates offered at $369,900.
• In Escrow! 2677 Genoa Ave- 1 bedroom, 1 bath, 749 square foot cabin offered at $117,500.
• In Escrow! 1038 Cheyenne Dr.- 3 bedroom, 2 bath, 1202 square foot bank owned property offered at $189,900.
• In Escrow! 1226 Reno- 2 bedroom, 1 bath, 972 square foot REO offered at $109,900.
• In Escrow! 1685 Venice Drive- 3 bedroom, 3 bath, 2 car garage, 1905 square foot foreclosure in the Tahoe Keys offered at $531,300.
•  1247 Tata Ln.-3 bedroom, 2 bath, 110o square foot home offered at $189,900.
• 3107 Easy Street- 3 bedroom, 2 bath, 12oo square foot home offered at $197,950.
• 643 Grizzly Mountain- 2 bedroom, 1 bath, North Upper Truckee home offered at $184,900.
•  1254 Margaret- Newer 4 bedroom, 2.5 bath, 2 car garage, 1960 square foot home offered at $319,900.
• In Escrow! 799 Tata Ln- 3 bedroom, 2 bath, 1260 square foot foreclosure in the Gardner Mountain area offered at $189,000.
• In Escrow! 690 Sand Harbor- 3 bedroom, 2 bath, 1452 square foot foreclosure offered at $205,000.
• 1977 Washoe St.- 3 bedroom, 1.75 Bath, 1292 square foot bank owned listing in Meyers offered at $194,900.
• 3682 Alder- 2 bedroom, 1 bath, 572 square foot cabin offered at $119,900.
• 3463 Anne- 3 bedroom, 3 bathroom, 2 car garage, 1995 square foot foreclosure offered at $249,900.
• In Escrow! 1113 Dedi- 3 bedroom, 1.75 bath, 1612 square foot foreclosure in the Y area offered at $144,900.
• 3773 Larch Ave- Triplex with a one car garage. One unit is a 4 bedroom 1 bath. This 3376 square foot triplex is offered at $194,900.
• 2009 Washoe St.- 3 bedroom, 2 bath, 2 car garage newer 2334 square foot home in Meyers offered at $349,809.
• 2505 Chris Ave.- 2 bedroom, 1 bath, 864 square foot foreclosure in the Sierra Tract offered at $165,000. 
• In Escrow! 3309 Woodland- 3 bedroom, 2.25 bath, 1919 square foot REO offered at $269,000.
• 1113 Dedi Ave- 3 bedroom, 1.75 bath, 1612 square foot foreclosure offered at $144,900.
• 728 Glorene Ave- Two cabins on one lot. One is 846 square feet and the other is 1394 square feet offered at $229,500.
• In Escrow! 1184 Acoma- 3 bedroom, 2 bath, 2 car garage, 2407 square foot, newer home on a big lot offered at $453,900.
• In Escrow! 7094 7th Street- 3 bedroom, 1.75 bath, 1166 square foot home in Tahoma on the West Shore of Lake Tahoe offered at $243,400.
• 311 Agatam Ave- 4 bedroom, 3.5 bath, newer 3488 square foot home in Tahoe Vista offered at $745,646.
• In Escrow! 3535 Lake Tahoe Blvd #495- 2 bedroom, 1.5 bath, 1447 square foot condo in Lakeland Village offered at $279,900.
• In Escrow! 2689 Kubel Ave.- 792 square foot, 2 bedroom, 1 bath bank owned listing in the Sierra Tract area offered at $141,000.
• 2616 Kubel Ave.- 1363 square foot, 3 bathroom, 2 bath, 1 car garage home offered at $177,500.
• In Escrow! 2328 Wagon Train Trail- 3528 square foot, 5 bedroom, 3.5 bath newer foreclosure in Montgomery Estates offered at $625,000.
• In Escrow! 1512 Murietta Dr1ve- 1530 square foot, 4 bedroom, 2 bath home offered at $234,900.
• In Escrow! 1532 Walkup Road- 1260 square foot, 3 bedroom, 2 bath foreclosure offered at $189,900.
• 1285 Pyramid- Vacant lot in the Angora Fire area. This is a 14,832 square foot lot offered at $99,900.
• In Escrow! 2581 Fountain- 3008 square foot newer, 3 bedroom, 2.5 bath home in the Sierra Tract offered at $414,900.
• In Escrow! 313 Tramway Drive- 880 square foot, 2 bedroom, 2 bath condo on the Nevada side with great lakeviews offered at $190,000.
• In Escrow! 863 Los Angeles- 1218 square foot, 3 bedroom, 2 bathroom fixer upper in Al Tahoe offered at $139,000.
• In Escrow! 1154 Margaret- 578 square foot, 2 bedroom, 1 bath foreclosure offered at $99,900.
• In Escrow! 2654 Armstrong Ave. 864 square foot, 2 bedroom, 1 bath cabin in the Sierra Tract offered at $108,000
• In Escrow! 2695 Elwood Ave.- 960 square foot, 1 bedroom, 1.5 bath home in the Sierra Tract offered at $162,900.
• In Escrow! 806 San Francisco Ave.- 1680 square foot, 4 bedroom, 2 bath home in Al Tahoe offered at $304,900.
• 729 Sand Harbor Rd.- 2961 square foot, 4 bedroom, 3 bath, 2 car garage newer home in the Gardner Mountain area offered at $512,900.
• In Escrow! 1321 Acoma- 864 square foot, 2 bedroom, 1 batn, 1 car garage foreclosure in the county offered at $198,500.
• In Escrow! 2692 Elwood- 912 square foot, 2 bedroom, 1 bath foreclosure in the Sierra Tract offered at $164,000.
• 1105 Charles- 1215 square foot, 3 bedroom, 2 bath, bank owned property in the Sierra Tract offered at $199,000.
•  1897 Delta St.- 1050 square foot, 3 bedroom, 2 bath home in the Y area offered at $122,500.
• 844 Muskwaki Drive-4475 square foot, 5 bedroom, 3.5 bath, 2 car garage newer foreclosure offered at $729,200.
• 2621 Elwood Ave- 971 square foot duplex in the Sierra Tract offered at $139,900.
• 3371 Lake Tahoe Blvd. #6-C- Quarter Share of a 3327 square foot, 4 bedroom, 4 bathroom condo offered at $419,990.
• In Escrow! 1961 Kokanee Way- 2755 square foot, 4 bedroom, 3 bath, 2 car garage foreclosure in the Tahoe Keys offered at $777,900.
• 1098 Tata Lane- 2645 square foot, 5 bedroom, 3 bath, 2 car garage bank owned property offered at $404,500.
•  In Escrow! 1811 Arrowhead-1560 square foot, 3 bedroom, 2.5 bath REO in Meyers offered at $318,500.
• 1030 Carson- 1348 square foot, 3 bedroom, 2 bath, bank owned property in the Sierra Tract offered at $221,901.
• In Escrow! 3221 Marlette Circle- 1838 square foot foreclolsure in Bijou offered at $199,900.
• In Escrow! 1769 Shady Lane- 1443 square foot, 3 bedroom, 2 bath foreclosure in Gardner Mountain offered at $244,900.
• In Escrow! 1297 Angora Lake Rd- 840 square foot, 1 bedroom, 1 bathroom, un-finished remodel offered at $125,900.
•  In Escrow! 1041 River- 810 square foot, 3 bedroom, 1 bath foreclosure in the Sierra Tract offered at $129,900
• In Escrow! 1032 Carson- 999 square foot, 2 bedroom, 1 bath foreclosure in the Sierra Tract offered at $144,900
• In Escrow! 1046 River Dr- 3060 square foot Tri-plex on the meadow offered at $324,900
• 1055 Cellador- 1750 square foot tri-plex offered at $180,900
• In Escrow! 3535 Lake Tahoe Blvd- 1 bedroom, 1 bathroom condo in Lakeland Village offered at $172,000
• In Escrow! 489 Tahoe Keys Blvd- 2 bedroom, 1.5 bath, 1 car garage, 1014 square foot condo in the Tahoe Keys offered at $299,900
• In Escrow! 477 Lido- 4 bedroom, 2 bath, 2 car garage, 2755 square foot foreclosure in the Tahoe Keys offered at $599,900
• 3682 Alder Ave- 2 bedroom, 1 bath, 572 sq. foot bank owned cabin offered for $149,900.
• In Escrow! 3235 Marlette Cir- 4 bedroom, 2.5 bath, 2 car garage, 1711 square foot home offered at $248,900
• In Escrow! 884 Kekin St- 3 bedroom, 2 bath, 1728 square foot remodeled home with a carport offered at $269,900
• In Escrow! 796 Clement- 4 bedroom, 2 bath, 2 car garage, 1800 square foot foreclosure in the Gardner Mountain area offered at $233,000.
• In Escrow! 1840 Shady Ln- 4 bedroom, 2 bath, 1 car garage, 1581 square foot home offered at $274,900
• In Escrow! 1137 Keller Rd- 2 bedroom, 1 bath, 816 square foot foreclosure cabin near Heavenly Valley Ski Resort offered at $175,000
• In Escrow! 2754 Springwood- 3 bedroom, 2 bath, 2 car garage, 1974 square foot home in Highland Woods offered at $319,900
• In Escrow! 1805 Arrowhead- 2 bedroom, 1 bath, 1 car garage, 864 square foot foreclosure in Meyers offered at $174,900
• In Escrow! 967 Kiowa Dr - 2 bedroom, 1 bath, 912 square foot bank owned cabin off of North Upper Truckee offered at $149,625
• In Escrow! 2019 Garmish Ct- 4 bedroom, 2.5 bath, 2 car garage, 2584 square foot foreclosure in the Tahoe Keys offered at $610,000

Lake Tahoe Real Estate Statistics for June 2010

June was a great month for Real Estate in South Lake Tahoe. There were 53 single family homes that closed escrow in June, more than any other month so far this year. The increase in the number of home sales was partially driven by the expiration of the first time home buyer tax credit which expired on June 30. Another factor was that there were a lot of short sales that had been in escrow for a long period of time that ended up closing in June. Almost half of the homes sold last month were distress sales. There were 14 bank owned foreclosures and 12 short sales that were sold. That is a substantial increase from May when 9 foreclosures and 7 short sales were sold.

South Lake Tahoe Real Estate Statistics for June 2010

• There were 53 single family homes in South Lake Tahoe that sold in June, up from 42 sales in May.
• 26 of the sold homes were distress sales (14 foreclosures and 12 short sales).
• The median sales price of the sold homes was $319,000, down from $322,000 in May.
• The average sales price of the sold homes was $416,292, down from $462,367 in May. The average sales price in May drops down to $387,667 if the $3,525,000 lakefront Tahoe Keys home is removed from the average.
• The average days on the market was 179 and the median days on the market was 114.
• The average price per square foot was $209, down from $216 in May.

Prices for single family homes actually went up in June 2010 compared to June 2009. The median sales price  was up 6% from $300,000 in 2009. The average sales price was up was up 17% from $346,317 in 2009. And the number of single family home sales was up 23% from 41 in 2009. The number of distress sales was up in 2010 as well. There were 26 distress sales in June 2010 compared to 16 in June 2009.

Distress sales continue to bring down the average and median sale prices of the homes sold in Tahoe. The foreclosures in South Lake Tahoe that sold in June had a very low average price per square foot of $157. The median sales price of the foreclosures was only $198,000,  the average sales price was $255,107. The low prices of the foreclosures are reflective of the condition of the properties. Many of the foreclosures sold in June were in need of repairs. The distress sales will continue to drive down the median and average sales prices as long as they are around.

Currently there are 512 single family homes listed on the South Lake Tahoe MLS, 70 of those homes are in escrow. There are 33 bank owned foreclosures for sale in South Lake Tahoe, 9 are in escrow.  There are 77 short sales listed on the MLS and 35 of them are in escrow.

May South Tahoe Real Estate Stats

May was a much better month for the South Lake Tahoe real estate market than it was for the stock market! There were 42 single family homes that closed escrow in South Tahoe during the month in May 2010. This is a significant increase from the 27 homes that closed escrow in May 2009. The stock market did not fair nearly as well!

Distress sales were once again on the decline. Distress sales only accounted for 38% (16) of the sales in May, down from 48% in April, and down from 58% in March. Foreclosures accounted for only 9 of the closed sold homes, short sales accounted for the other 7.

May South Tahoe Real Estate Statistics

• There were 42 single family homes reported as sold on the South Lake Tahoe mls in the month of May. This is up from 27 in May 2009 and down from 46 in April 2010.
• The average price of the homes sold was $462,367 (The average drops to$387,669 if I take out the lakefront Keys sale for $3,525,000) The average sales price was $386,177 in April and $355,633 in May 2009.
• The median sales price of the homes sold in May was $322,000. This is down from $329,163 in April and up from $315,000 in May 2009.
• The average price per square foot was $216. The average price per square foot was $211 in April and $222 in May 2009.
• The average days on the market was 145, down from 158 in April and down from 147 in May 2009.
• The median days on the market was 99, down from 112 in April and down from 137 in May 2009.

The distress sales that sold in May had a very low price per square foot compared to the non-distress sales. The foreclosures that sold had an average price per square foot of $165 and the short sales had an average price per square foot of $170. The price per square foot for the non-distress sales was $245.

Here are some other interesting statistics for the distress sales sold in May:

• Including the escrow period, the foreclosures had an average days on the market of 66. The sold short sales averaged 286 days!
• The foreclosures had a median days on the market of 76 days including the escrow period. The sold short sales had a median days on the market of 204!
• The average sales price of the foreclosures was $257,156. The average sales price was $479,857 for the short sales.
• The median price of the sold foreclosures was $229,900. The median sales price was $525,000 for the short sales.

There were only two lots in South Lake Tahoe that sold in May. Both lots that sold were in the North Upper Truckee area. One was a lot in the burn area that sold for $145,000 and one was a 10,511 square foot lot that sold for $95,000.

There was one condo that sold in May. This was a 2 bedroom 1.5 bath unit in the Tahoe Keys that sold for $290,000.

There was also only one multi family unit that sold in May. This was a property that had 2 houses on one lot in the Tahoe Island Drive area. These homes sold for $240,500.

 The most active area of the South Lake Tahoe real estate market continues to be the single family homes. It is great to see that the percentage of short sale and foreclosure sales has continued to decline for the third consecutive month. The percentage of distress sale closings has gone down to 38% from 65% in February. This is another sign of stabilization in the housing market. I hope that it continues!

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