Lake Oconee and Lake Sinclair distressed properties, short sales, foreclosures

While the national downturn in financial markets, including real estate, has not affected the local market for lake property at Lake Oconee and Lake Sinclair as severely as in traditional residential markets, there are still opportunities available.

First, a general observation: although the local newspapers are carrying pages of impending foreclosure sale notices, very few really desirable lake properties actually get sold on the courthouse steps. The bank intervenes with an offer of a potential short sale (they will take less than their borrower owes and release the borrower from further responsibility). Or the borrower finds a buyer for the property in the nick of time, often by getting realistic about the property's current, true market value.

A "courthouse steps" transaction has so many potential pitfalls...being sold "as is", possible tax liabilities, possible mechanics' liens...that you as a buyer, and your agent, had better be very specifically experienced in such transactions. Also, lenders will often refuse to sell at an absurdly low price. They have no desire to get stuck with property to manage, but they are generally unwilling to let a property go at 20% or 50% of it's current market value. Very few agents have the experience to properly represent their buyer (I don't...that's why I steer clear of these transactions. A handful of our area agents are quite well qualified to do this and are earning a good living at it). It is truly not an activity for the faint-hearted, uninitiated, nor for the average seeker of a place for their family to live or as a family retreat.


What does make sense, especially for the buyer who wants property for their own use rather than as a pure investment, is to spend the time to get to know the relative values of properties available, and to get a feeling for the degree of motivation of specific sellers. For the buyer who has the financing arranged, or better yet, the cash on hand, to make a buying decision quickly, there are excellent buys...values that would have been on the mark four years ago, and and with good potential to maintain or increase in value.

And just try taking your granddaughter fishing at your 401K!