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Foreclosures in South Lake Tahoe Q and A

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Purchasing a bank owned foreclosure is a lot different than purchasing a home from a homeowner. Fannie Mae has put together a list of general questions and answers that will help buyers to understand the main difference between the two transactions.

Q. How is buying a home owned or

managed by Fannie Mae different?

A Usually, when you buy a home, you deal with a

seller who lives in the home. However, Fannie

Mae and other corporate sellers have not

occupied the homes they are selling. They are

transitional owners only, having acquired these

properties through foreclosure, or deed in lieu

of foreclosure, or forfeiture.

When buying a corporate-owned home, it is

important to know the condition of the

property, the cost of any needed repairs, and

steps in the loan qualification and closing

processes before you enter into a purchase and

sales agreement.

Q Has Fannie Mae fixed everything in

the house?

A Probably not. Even if the house has fresh paint,

brand new carpet, perhaps even a new roof or

siding, that doesn’t mean everything in the

house is new – or even works.

Fannie Mae sometimes makes repairs to

properties to increase their marketability.

Additionally, there may be certain safety

conditions that require repairs. But Fannie Mae

sells each property in an “as is” condition. This

means that you, as the buyer, accept the

property in its condition at the close of escrow.

Fannie Mae is not responsible for fixing any

problems after the close of escrow.

Fannie Mae does not warrant or guarantee any

work that may have been done on the property –

whether made as part of its efforts to sell the

home or pursuant to conditions in the purchase

contract. You may wish to buy a home warranty

at your own expense.

You should certainly hire a qualified professional

to inspect the condition of the property whether

it has been repaired or not. Hiring a home

inspector is a good practice, no matter what

type of home you buy.
Q What can you tell me about this house?

A Sellers of properties acquired through

foreclosure, deed in lieu of foreclosure, or

forfeiture are exempt from completing a transfer

disclosure statement. That’s because these sellers

never lived in the house, and don’t necessarily

know of any hazards present. However, if Fannie

Mae has knowledge of any hazards on properties

we own or market, we disclose this information

through our listing agents. Again, we encourage

you to make your own home inspection of the

property before you buy.

Q What type of sales contract does

Fannie Mae use?

A Usually, when you buy a California home, you

write an offer to purchase. Then, once your offer

is accepted, you open escrow through a second

set of documents called escrow documents.

In order to increase the efficiency of the sales

process, Fannie Mae uses a combined real estate

purchase contract/escrow instructions

document for California properties. If there is

anything in the document you don’t understand,

or aren’t comfortable with, you may want to

contact a real estate attorney, the real estate sales

professional who has listed the property, or any

real estate professional of your choice to review

these documents with you.

Q Do I have to use Fannie Mae’s selected

title and escrow companies?

A No. The use of Fannie Mae selected title and

escrow companies is not required. You, as a

buyer, may designate use of the title or escrow

company of your choice, subject to the terms

of the contract.

Q Will Fannie Mae accept an offer

contingent on the sale of my house?

A No. Fannie Mae will not accept offers contingent

on the sale of your current home. Other types of

contingencies will be considered on a case-bycase

basis.

Q Why does Fannie Mae require a lender’s

prequalification statement before

negotiating a home purchase offer?

A Fannie Mae wants to be sure that you, as a

prospective buyer, will be able to complete the

sales transaction, including obtaining financing

when needed. Prequalification allows you to see

how much house you can afford, and how much

of a mortgage you may be able to qualif y for,

before you actually make an offer on a home.

That also helps you focus on homes in a price

range you can afford.

What’s involved when you, and your copurchaser

if there is one, get prequalified?

First, the lender will verify if you have sufficient

funds for the down payment and closing costs by

checking your bank statements. Second, the

lender will judge your ability to make house

payments by reviewing your credit report. And

third, the lender will verify your income through

your most recent pay stubs.

Remember, a loan prequalification doesn’t mean

your loan is approved. You must apply for a loan

separately, after you are prequalified and your

offer to buy the home is accepted.

Fannie Mae may require that a Fannie Maeapproved

lender provide your prequalification

statement. However, you may apply for and

obtain your mortgage from any lender –

it need not be the lender who provided your

prequalification statement.

Q Does Fannie Mae provide special

financing on its houses?

A Sometimes. REO (Real Estate Owned) financing

may be available on certain Fannie Mae-owned

properties through lenders designated by

Fannie Mae. The listing agent is able to

provide information regarding the availability

of financing on any particular property.

Q Can I buy a house directly from

Fannie Mae without going through

real estate agents?

A No. Fannie Mae depends on the expertise of local

real estate sales professionals and accepts offers

only through our real estate listing agents. You

may work with any real estate sales professional

you like to submit an offer to the real estate

agent who has listed the property.

Q What happens if Fannie Mae gets more

than one offer?

A Each interested party may be requested to

submit their “best” offer in writing through

the listing agent no later than a certain specified

date and time. Fannie Mae may accept or provide

a counteroffer to the offer that Fannie Mae

determines to be in its best interest. Fannie Mae

is not obligated to accept any offer submitted.

Q How can I learn more about California

properties for sale?

A Fannie Mae-owned and managed homes are listed

in the local South Lake Tahoe MLS, if

available, and are accessible to any real estate

broker. In addition, you can find the list of

properties for sale on Fannie Mae’s web site at

www. fanniemae.com. There, you can search for

Fannie Mae-owned and managed properties by

city, state, and price range. The web site lets you

view the properties available – in California and

nationwide. Information includes street

addresses and contact information for the real

estate broker.

For a list of Foreclosures in South Lake Tahoe please contact Brent and Jill Johnson at BJJohnson@ChaseInternational.com

 

 

 

 

Homes in South Lake Tahoe to get Curbside Recycling!

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For years the South Tahoe Refuse would have to pick through the trash on a giant conveyor belt (The Murphy) for recyclables. Beginning in January the Refuse will finally be launching a curbside recycling program for the city residents. Blue trash bags will be provided for aluminum cans, tin cans, glass bottles, and newspapers. The “blue bags” are to be put out on normal trash days along side with the non-recyclable trash.

The recycling program does come at an expense to all South Tahoe Refuse customers. A 4.33 percent rate increase was approved by the City Counsel to help offset the cost of the program. All houses in South Lake Tahoe are required to have Refuse service weather they are occupied or not.

I am happy to pay the rate increase knowing that it will be helping the environment!

South Lake Tahoe Real Estate Review for September

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Pending South Lake Tahoe home sales were up again from 43 in August to 51 in September, a 16% increase. The total pending real estate transactions reported on the South Lake Tahoe MLS is now up to 79, which is 14.4 percent of our inventory.

The statistics for the September pending sales are as follows:

-Minimum pending price                    $174,900

-Average pending price                      $515,359

-Median pending price                       $405,000

-Maximum pending price                  $2,300,000

The number of sold homes actually slipped  18% from 33 in August to 27 in September. Out of the 27 homes that sold in September, 7 (or 26%) were foreclosures.

The statistics for the September home sales are as follows:

-Minimum sales price                       $215,000

-Average sales price                         $475,336

-Median sales price                          $435,000

-Maximum sales price                     $998,000

Activity on South Lake Tahoe Condos remained slow with 3 solds and 4 pendings

There were only 3 lots that were reported as sold on the MLS, and only 1 new escrow.

There has been an increase of “Short Sale” escrows being opened, but only a few of them have been closing. I am currently in escrow on one of these, and you definitely have to be patient! The short sales are being listed below market value, so they tend to go into escrow quickly, but there is nothing quick about getting them closed!

South Lake Tahoe MLS Listing

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NEW LISTING!!!

2323 Utah ave. South Lake Tahoe CA

2323-utah-007.jpg

Built in 2007, this newer 4 bedroom, 2.5 bath, 2 car garage South Lake Tahoe home has all or the features you would expect in a quality house!

-Granite slab counter tops                                                                       -Stainless steel appliances

-Hickory hardwood floors                                                                        -Interior fire sprinklers

-Knotty Alder cabinets                                                                            -Attention to detail

-Stainless steel appliances                                                                      -Much More!

2323-utah-017.jpg          

If you would like to schedule an appointment to see this home, or any other South Lake Tahoe Homes

please contact Brent or Jill Johnson at Johnsonhly@sbcglobal.net  or (530) 416-2625. You can also view the South Lake Tahoe MLS on my website bjohnson.idxcentral.net  .

South Tahoe Homes Just Sold!

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Bank owned property in South Lake Tahoe

JUST SOLD!

1980 MOJAVE STREET

mojave.jpg

2 bedroom, 1 bath, 1 car garage sold for $215,000!!!

 I recently had the great pleasure in helping my clients Matt and Denise Gallegos find their perfect vacation house in South Lake Tahoe. The house that they decided on was a bank owned foreclosure on a large sunny lot in the Meyers area.

Here is what Matt and Denise had to say about their transaction:

“The customer service provided by Brent Johnson and Chase International was beyond the call of duty. Purchasing our first vacation home, Brent not only called us everyday, but he did a lot of work for us that we were not able to do ourselves because we live some three hours away! We met out of the blue while on vacation in South Lake Tahoe and he drove us around all day answering questions and showing us every home available in our price range. No pressure or hassles, but genuine customer service. I would recommend Brent Johnson to my family and friends because of his character, integrity, and honesty”

Matt and Denise Gallegos

Matt and Denise were able to buy real estate in South Lake Tahoe due to the fact that it is now “a buyers market”.

I was very happy to receive this letter from Matt and Denise. It shows that I stick to my motto that “I provide million dollar service for all of my clients!”

 

South Lake Tahoe Real Estate Review for August

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Pending home sales in South Lake Tahoe increased 23% increase in August compared with July. In August there was 43 pending home sales reported on the South Lake Tahoe MLS compared to 33 in July.

The statistics for the August pending sales are as follows:

-Average days on market          97

-Minimum price                          $259,500

-Average price                            $539,215

-Median price                              $435,000

-Maximum price                         $2,300,000

Out of the 43 new escrows six of them are bank owned foreclosures, and eight were reported as short sales. Five of the new escrows are located in the Tahoe Keys bringing the Keys to a total of   7  open Escrows. There is now a total of 64 pending escrows on the South Lake Tahoe MLS.

Sold homes in South Lake Tahoe saw a 15% decrease in August compared to July. There were 33 sold houses reported on the MLS in August compared to 39 sold in July.

The statistics for the August sold houses are as follows:

-Average days on market (including escrow period) 150

-Minimum price    $189,000

-Average price      $521,597

-Median price        $467,500

-Maximum price   $1,200,000

There were only three foreclosures that were sold in August on the MLS.

Activity on Condos in South Lake Tahoe remained slow with four condos reported as pending, and four that sold. Two of the sales were in the Tahoe keys.

Lot activity was similar to condo activity. There were four lots that went into escrow, and two that sold in the month of August.

The 23% increase in pending home sales for August shows that home buyers are starting to take advantage of the  opportunities in todays buyers market.

Tahoe Keys Real Estate is Heating Up!

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After a slow start this year, home sales in the Tahoe Keys are finally starting to heat up!

Last night I was bass fishing in the Tahoe Keys near the entrance to Lake Tahoe. It was another incredible Tahoe summer evining. I couldn’t help but overhear some vacation renters outside on a deck talking about the offer that they had just submitted on a house in the Tahoe Keys. After staying a week in the vacation rental home on the water, they decided that they had to take advantage of the market and to buy in the Keys.

Winter and spring were scary for Tahoe Keys sellers. It took until May 15th for the first Tahoe Keys sale and then May 20th for the second.  Once summer began, the the Keys buyers began to snatch up houses from motivated sellers and a couple of banks (REO’s). According to the South Lake Tahoe MLS, there have been 17 closed escrows in the Tahoe Keys this year, and 15 of them have been in the last couple of months.

The average sale price in the Tahoe Keys has been $898,395 this year.

                                                      Median sale price     $845,000

                                                      Minimum sale price $410,000

                                                      Maximum sale price $1,900,000

In the Tahoe Keys there are currently seven houses in escrow on the South Lake Tahoe MLS:

1997 Garmish- list price $799,000

1882 Cascade Ct.- list price $995,000

524 Christie Dr.- list price $1,088,000

1961 Kokanee Way -list price $1,495,000

484 Carson Ct. -list price $1,100,000

417 Christie Dr.- list price $849,000

                          tahoe-keys.jpg

One of the reasons that houses have started selling in the Tahoe Keys is that sellers are starting to price their homes to sell. You can now buy a nice 2000 sq. foot home with lake access in the $700,000’s!

The only down side to the Tahoe Keys is that you will have to watch me bass fishing in your back yard once a week!

Short Sales In South Lake Tahoe

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Short sales are becoming more and more common across the country. A short sale occurs when a lender agrees to accept less than what is owed on the property as payment in full. Short sales have become common due to the decrease in home values, and the popularity of low and no down loans during the recent real estate boom.

Here is an example of an active short sale on the  South Lake Tahoe MLS:

                                                                                         mohican1.jpg

1835 Mohican

This home was listed previously for $1,199,000. This is a five bedroom, three and one half bath, three car garage, 3300 square foot home.

This home was recently re-listed for $769,000 as a short sale, and soon after sold for $780,000!

One thing to know about making an offer on a short sale is that your offer may take weeks or even months to get a response from the bank. If the seller and the listing agent have done their job, and submitted a complete short sale package to the lender prior to listing the home, this time period should be shortened. If the seller and the listing agent have not contacted the bank and have not submitted a short sale package, I would be wary of wasting your time with an offer.

A short sale can be a beneficial situation for every one involved. The seller will be getting out from under a payment that he or she can no longer afford, the buyer may be purchasing the home below the current value, and the bank will not have to foreclose on the owner.

The down side to a short sale is that the seller will be damaging their credit score and the bank will be loosing money on the loan discount. Another possibility with short sales is that after a long wait for lender approval, your offer may be declined, and you will have wasted valuable time in this buyers market.

 Here is Wikipedias definition of a short sale:

Short sale (real estate)

From Wikipedia, the free encyclopedia

Jump to: navigation, search

 This article needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (September 2008)

In real estate, a short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold.[1] In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank’s Loss mitigation or Workout department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Many Short Sales leave a deficiency balance for which the Mortgagor / Borrower is still liable. In 99% of all cases it is not a settlement-in-full. A deficiency balance will remain while the mortgage broker, real estate agent / broker, loan officers, title and closing agents retain their profit. No regulatory agency governs this hybrid transaction.

Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower’s financial situation.

A short sale typically is executed to prevent a home foreclosure. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. A short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

Short sales are common in standard business transactions in recognition that creditors are not doing debtors a favor but, rather, engaging in a business transaction when extending credit. When it makes no business sense or is economically not feasible to retain an asset, businesses default on their loans (called bonds). It is not uncommon for business bonds to trade on the after-market for a small fraction of their face value in realization of the likelihood of these future defaults

More Changes For South Lake Tahoe Vacation Rentals

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On Tuesday August 19th, the South Lake Tahoe City Council approved several rule changes for vacation rentals.

Starting September 19th, vacation renters will not be allowed to use the house for commercial activities, including wedding receptions and large parties.

Restrictions on occupancy and overnight parking will now be from 10 p.m. to 6 a.m., changed from midnight-to-6 a.m..

Vacation rental homes will also be required to post signs on the homes that state the maximum number of occupants and vehicles allowed at any one time. The phone number and e-mail address of the police will be required to be on the sign for potential complaints.

Permit fees for vacation rental homes will be increased to cover the cost of a new community-service officer who will enforce the new rules and respond to complaints.

Regulating vacation rentals in South Lake Tahoe is a much better solution to correct concerns than the previous idea of a vacation rental moratorium. 

I have quite a few clients looking for homes in Lake Tahoe that  plan to supplement some of the ownership costs by renting the house out as a vacation rental. If vacation renting was not an option, they may not be able to own a house in beautiful Lake Tahoe!

“The Donald”

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Every day clients ask me if I think that the real estate market  will keep going down. To answer this question, I look at the local market statistics, listen to Real Estate analysts, and give my personal opinion. Prices for Real Estate in South Lake Tahoe may or may not go down any more, but Real Estate mogul  Donald Trump says “Now is the Time to Buy!”.

Last week “The Donald” was on Good Morning America, and gave his opinion on the Real Estate market.

“If you want to buy a house there’s probably never been a better time,” Trump said.  “It’s a tough market. It’s a horrible market,” he said. But “this is the absolute time to buy. It’s not the time to sell.”

According to Trump, the golden real estate rule of location, location, location still applies.

I can’t think of a better location than Lake Tahoe! Lake Tahoe is a resort destination area with year round activities that draws people of all ages and interests.

Donald Trump has made millions on real estate in his career, and is definitely a reliable source for real estate advice!

I personally do not know if we are at the “bottom” of the market, but I know we are close. We are close enough to the bottom that I am putting my money where my mouth is. I just put a seven unit apartment building in South Lake Tahoe in escrow for myself. I feel that now is the time to buy, and that is what I am doing!