The city of South Lake Tahoe is in El Dorado County, California, nestling in the Sierra Nevada Mountains. Into such a paradise has sneaked in South Lake Tahoe foreclosures – a fall out from what is happening elsewhere in the country. California is one of the worst hit areas and as such El Dorado County cannot be far behind.

Analyzing the cause of South Lake Tahoe foreclosures many pundits have many views. Some say that South Lake Tahoe foreclosures have multiplied because of the blacks and minorities being targets of predatory lending especially the sub-prime category with floating interest. Figures belie the statement for the racial make up shows that nearly 76% are Whites and only 0.75% blacks. There are 0.97% Native Americans, 6.01% Asians and the rest are Pacific Islanders, Hispanics etc. Others are of the opinion that South Lake Tahoe foreclosures are because of a fall out from hectic building activity during the early years of this century. That was the time when sub-prime loans were advanced practically to anybody with a pulse. The monthly payments were low initially but when it began to rise the result were South Lake Tahoe foreclosures.

Fearing the increase of South Lake Tahoe foreclosures here as elsewhere the authorities from the local, state to the federal levels took many steps – the primary one being reduction of interest rates. But surprisingly that has not stopped the flow of South Lake Tahoe foreclosures. It is leading to another problem that is not connected with the rate issue – it is the slump in the real estate market. As a result those who are victims of South Lake Tahoe foreclosures cannot refinance or sell their units to get back their financial stability. As a result of South Lake Tahoe foreclosures the prices of property has fallen so low that often it does not cover the loan amount. The fall out of South Lake Tahoe foreclosures will be evident by glancing at some figures. The average list price of property in Lake Tahoe this year is $1,106,440; the sale price this year is $498,873 while the sale price last year average was $574,890. South Lake Tahoe foreclosures are responsible for this.

The effect of South Lake Tahoe foreclosures can be further understood by studying the neighbourhood figures. The costliest neighbourhoods are – Tahoma and Rubicon with the average prices at $14,500,000 and $15,729 respectively. The most modest ones are at Twin Bridges and Whitehall with the average prices at $332,000 and $290,000 respectively.

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