The first time there was a lakefront foreclosure / REO it was drastically underpriced and ended up receiveing 22 offers. The list price was $2.2m and it ended up selling in a few days for $1m over asking. That was back in 2009. Since then, we’ve seen some lakefront distress but not too much. Here is a link to some of the lakefronts which are either in a short sale position, REO or court approval is needed for the sale:
Click Here to View Troubled Lakefront Listings