I have made no secret of the fact that I dislike Delavan Lake. That I dislike this lake and others like it is easy to explain. If one spends one’s entire life driving a 1984 Chevy station wagon, then it might seem reasonable for that person to like that station wagon. The way it handles, the way it bounces, the way it can sleep three kids in prostrate positions. But if that person, who loves that Chevy, were to sit behind the wheel of a 2012 Chevy Denali, then the opinion of that old wagon may change. In other words, don’t blame those who love Delavan. They just don’t know any better (I just insulted many thousands of people). The nice thing about Delavan right now is that is is cheap. Like cut to the bone, scrape off every ounce of meat, cheap.
A bank owned home was listed on Delavan yesterday in the high $400ks. This home is assessed at around $1.3MM. This is the sort of value that exists on Delavan right now thanks to a suppressed market made even worse by the existence of foreclosure. Fortunately this sort of value doesn’t exist on Geneva, at least not in this price range. Some buyers might wish this sort of devaluation to occur on Geneva. The thought of buying lakefront for $500k on Geneva sounds pretty amazing to some, but it just sounds like 1996 to me. Just as the wild swings in sales prices have negatively impacted all of Delavan Lake, the relative stability of Geneva has provided more proof that Geneva is indeed the place to be.
The foreclosure scene today continues to bore me. Nothing makes me less excited than scrolling through Lis Pendens filings and checking sheriff’s sale schedules. But I do this so you don’t have to, and if we’re going to dissect this market and follow it intensely then we must know what foreclosures exist and which ones are lying in wait just beyond the horizon. That horizon today has a lakefront foreclosure lurking.
The foreclosure that I can see far in the distance is likely one that will not make it to sheriff’s sale. I say that as if I know, but I’m only speculating. I know a bit of the situation, and it appears to be unfortunate. The home is in the city of Lake Geneva, and what it lacks is size it more than makes up for in pretty. This home follows the curious trend of foreclosures in that it’s heading towards disaster yet it isn’t listed on the open market. Please take my advice on this- if you’re in trouble financially and there’s even a slim hope that you have some equity left in your property, get it on the market. And then buy lottery tickets.
There are just a couple other homes in our vacation home market that have been recently served with lis pendens notices. The problem with forecasting foreclosure based on these notices is that the ridiculous rules of the myriad loan modification programs dictate that a homeowner must first default on mortgage payments before they will be considered for a modification. This is a counter productive stretch of red tape, as it pushes troubled homeowners deeper into arrears in the hopes of someday recovering. This is akin to digging a large hole in your yard in the hopes that you’ll find a better view. When I see lis pendens filings, I have to remember to not assume that these properties will actually end up in foreclosure.
I’ve had a little exposure to the foreclosure market of late, and have represented buyers bidding on both bank owned properties and short sales. The short sale property was bid on and a week later went to sheriff’s sale. The bank owned properties have been anything but easy to pry from the banks at reasonable prices. All the glitters is not gold just as every foreclosure is not a true deal. Individual markets that remain troubled by foreclosure include the Abbey Villas, Geneva National, and several of the condotel properties in Lake Geneva. Wherever you find the combination of steep monthly dues, depressed pricing, and a lack of liquidity, you’ll be sure to find foreclosures. I’ll keep watching this market so you don’t have to.
Is the foreclosure you are alluding to in Geneva Manor? What do you think that property will go for?