Thursday, September 29, 2011

How responsive is your BOD/Management Company?

Here is the result of six months of inquiries as to the costs involved in only the 2nd suit that I know of* against the BOD. Asking questions of the BOD is usually a waste of time. After five months I sent off a certified letter which forces the BOD to furnish a reply within 30 days.

If you have a serious question for the Board probably the only way you will get a reply is if you send it via certified mail, this is limited to one question every 30 days.

So the answer on costs to the Owners for the 3 year suit is $10,644.50. This could have been avoided if the various BOD's over this period had simply enforced the documents regarding the rentals of condos at NCC.

Case Details at:

* The other suit was handled by our insurance company at no direct cost to us. It involved the theft of 2 expensive motorcycles here, from 2 seperate owners, during a time that the front gate and cameras were not working.  The suit resulted in an unpublished settlement by the insurance company.

Sunday, September 25, 2011

Under the Heading of 'Old Business'

Every now and then I bring up to the top of the board something that you might have missed when it was originally posted.  Here is one such item tucked away in the Concord Management Agreement. 

Update of 1/24/11:  The reply to the below request for disclosure is now on hand and it is that Mr. Knight will not disclose how much or why he is getting paid by Concord Management while he is a Board member here at Nautilus Cove. 
  Compensation for NCC BOD  
 Member - How much/why? 
An inquiry is pending with the Concord Management company as to what compensation is going to our Developer appointed Director Mr. Norman Knight. If/when an answer is provided it will be published here. Of course any Owner can make this inquiry at the Annual General Meeting on 1/29/11.

The above is from the ten page, 2010 Concord Management Agreement, which was approved 3-0 by our Board of Directors which included Mr. Norman Knight.  (See any conflict of interest there?)  

718.3025 Agreements for operation, maintenance, or management of condominiums; specific requirements.—
(1) No written contract between a party contracting to provide maintenance or management services and an association which contract provides for operation, maintenance, or management of a condominium association or property serving the unit owners of a condominium shall be valid or enforceable unless the contract:
(e) Discloses any financial or ownership interest which the developer, if the developer is in control of the association, holds with regard to the party contracting to provide maintenance or management services.
(f) Discloses any financial or ownership interest a board member or any party providing maintenance or management services to the association holds with the contracting party.

See the New 10/4/10 Condo Management Agreement at -

Thursday, September 22, 2011

In an ABC news interview ‘Time to Buy, Sell or Walk Away’, Susie Orman said it could be decades before home values start to rise and predicted that more than half of Americans will be renters instead of homeowners. A staggering 1 in 4 homeowners are underwater, and many experts, including Orman, often recommend just walking away.

For well over a year I have been pointing out on this blog, that to continue to pay mortgage rates from 2005-8 in the face of condo prices at NCC being 50% of what you paid for them was foolish.

Orman continued: “People who are 20 percent or more underwater should ask the bank for a short sale, or selling the house for market value, even if it is less than what is owed . . . If the bank won't work with you stop making payments and save that money until the bank forecloses. . . Of course, you should walk away if the bank isn't willing to help you”

==================== From 6/19/11   ===================

Prices here will never get back to the 2006-7 level

I look at prices here weekly and see some unrealistic expectations in how owners price their condos. One 2/2 is on the market for $150,000, you can get a 4/3 for $99,700 (#405 formerly belonging to Kennedy), 50k less than that and for a much larger unit, so why bother listing at a price no one would even consider?

I paid $165,900 for my unit 5/07, paid it in cash, no mortgage. The condo upstairs of me was one of the Waterstones 4 foreclosures and it sold 9/9/10 for $84,000, or 50.6% of what I paid. All it needed was a paint job and the carpet cleaned. The other 3 Waterstone units went higher, but all in the 80-90k range.

Realistically my unit is worth 50% of what I paid for it and yours is also! If you paid cash you can probably sell immediately (3-4 months) for half price, if you have a mortgage you can just live in it, 'try' for a short sale or just mail in the keys and walk away from it.  The condo above went for 40%  of the original sale price and the market will continue to decline into 2012.

Some owners rent them out or try to. They are in competition with the Developers 56 unsold units which are priced as low income housing and will rent first. Even if you do rent it out you won't make enough rental income to equal your mortgage payments each month. Every month you will be in the hole. This is called deficit financing and when the government does it, they just print more money. When you do it you will find it to be a short term solution that will go on until the market recovers or you run out of savings to make up the difference (guess which is going to happen first).

Keep in mind that there are many more foreclosures to come at NCC and your pricing will always be in competition with these. There is no light at the end of this tunnel.  The 'old' owners who purchased at list price, or close to it, will be replaced by a new crop of owners who come in at the much lower foreclosure prices.

Nautilus Cove isn't going away, it is just going to be owned by a new crop of people who paid a lot less for their condos than we did.

Sunday, September 18, 2011

Just a reminder FYI:

Don't be a pig, take your garbage to the compactor and if you have your kids take it for you then make sure they take it all the way and don't just dump it in the bushes or leave it at a pet waste station. 

Not sure what our Rules and Regulations are?   Click on this link to find them:

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Friday, September 16, 2011

The ‘Best Time to Buy’ a condo?

Every realtor will tell you ‘now is the best time to buy’. Of course that is nonsense, and it won’t make them any commission to tell you that it is next year when the foreclosure market really gets into high gear.

Due to the major banks screwing up with the ‘robo signing’ nonsense the sales of foreclosed units has slowed and banks and mortgage companies have been reluctant to put more homes/condos into ‘lis pendens’ status as they could not handle those they were already foreclosing on.

This situation is now about to change and experts predict that in early 2012 not only will foreclosures rise, but those already filed will be put back on tract to the banks taking possession and marketing those condos. Presently the Florida ‘average’ length of time between filing and taking possession is about 850 days. This gap should be steadily closing and in 2012 it should be a much more reasonable time frame for the banks to take over a unit from a delinquent owner.

This is a mixed bag for condo owners. On the plus side the currently empty condos will be sold and new faces will appear in the previously empty units, bargains will be had by the new owners who will come in at prices 50% of what the original owners paid.

The downside is of course this coming flood of foreclosed condos will make it almost impossible for current owners to sell at any reasonable price. The foreclosed units now available are priced to sell, those coming next year may even be cheaper plus there will be a greater selection for new purchasers to choose from.

More info at:  and

Tuesday, September 13, 2011

Something that might be of interest to all residents at Nautilus Cove

I had an interesting email today from an owner here who was quoting something that had been sent on and I thought it and my reply might be of some interest to readers. I have omitted the name of the person who sent me the email.

Bill Harris, 708


Subject:  Sad News 
Date:  9/13/2012 2:14:00 P.M
From:  redacted

I just received the following from one of our owners and thought you should know about this.
Someone recently told me they were thinking of buying in our community but due to Mr. Harris's blog they declined. It was upsetting to hear the negative thoughts they had received. I really feel upset over how we are perceived due to someone's negative information. Just thought I would share this information it was upsetting to me..

due to Mr. Harris's blog they declined
They made the right decision.
Thank you for your email it deserves a comprehensive reply and I am pleased to take an hour out to respond in detail.
As long as you, as a BOD member, keep Concord Management running this complex it will not be a fit place to buy a condo.
Their 3 year sweetheart contract is up next year (Oct 4th I believe) and whoever is on that 2013 board MUST see that Concord Management gets tossed out.
They work for the Developer and NOT for our Owners. We are paying them a heck of a lot for very little work for us here at Nautilus Cove. I am going to attach something that you may have seen before, but it tells everyone exactly who Concord Management Ltd works for and I intend to make sure that each and every Owner here at the condo gets a copy of this ** they may not read it but they sure will get it.

I and a heck of a lot of other Owners have had more than enough of this foolishness from Concord and Ms Turnipseed. I have absolutely NO doubt whatsoever that it was her that posted on my message board the negative information about the former employee Mr Holland and an Owners husband ( She is a totally disruptive and un-cooperative person. I know this from many sources including my own contacts with her.
I will continue to be entirely negative towards Concord until they are gone which I hope is with the new 2013 Board of Directors and you can email a copy of this the person who complained and anyone else you would like.
I have had no use for Concord and the Developer since my inquiry many years ago to both management firms (Concord & Seagrove), the BOD and the Pres of Concord Management about the 4/16/08 2 minute 'Emergency' BOD meeting* (I asked what the 'Emergency' was), while no one officially responded to me the Mr. Jones, the realtor you like from Pelican, emailed me that they didn't have to tell me and one of the Pelican realtors told me that the Developer said: "it was none of my business". Until then I had little interest in Concord, since then I have and I will see that they will not remain as our management firm.
If you are interested in what my best guess on the 'why' of this Emergency meeting was necessary, it is that Concord Management did not have a certified Community Assn Mgr on our site when they took over from Seagrove, which is violation of DBPR regulations and they could be heavily fined and they wanted 'out' on a temporary basis ASAP (ie: before anyone noticed) so they gave it back to Seagrove for a few months.
As you know NCC is no longer an 'approved FHA/HUD' complex, this rating expired a year ago and it has nothing to do with my blog but has to do with the number of rentals here v. owner occupancy (it is about 80% rental) and our long standing delinquency rate. I also just lost the sale of my condo on a VA loan. Our condo is just not certifiable anymore so lenders are not anxious to write loans for NCC units. You might remember my having written to you about a month ago when a Mr. Coulson from Atlanta had his bid for 515 fall through, he wrote:
"Two Banks have refused loans in Nautilus Cove.
We were approved for the loans, but FHA has dropped the complex from the approved list of FHA approved Condos, so an FHA loan could not be obtained.
Reason: Financial Status not updated.

Second Conventional Loan not approved because too many rentals, developer owned units, and current financial status of the Association."

The units here are not easily sold despite prices being 45% of original, mine was almost sold at 54% of original price and went down the tubes Monday.
So please tell your little friend (probably Realtor Jones) that the decision of the person not to consider NCC was probably the correct one, at least until we can unload Concord Mis-Management and get someone else.
And if you are interested in who might come in, take a look at: Nearly 2 years ago I asked the Continental Group to take a look at our complex and write a proposal as to what they could do for us, they did 24 pages just on spec. Their firm is the local representative of one that has over 1 MILLION managed units in several countries, Concord has perhaps 32,000 managed units in 7 states (a couple of states it is 1 complex).
I have never met with anyone from Continental, have no connection to them and don't care if they, or some other management firm takes over, I just know that we don't need a snotty CAM in the office representing the Developer and his 'Team' of companies.
Bill Harris

(NOTE: This is the infamous 2 minute meeting in which one management firm was fired and another appointed. Both management firms and the BOD have repeatedly refused to provide any info as to why one firm was fired and the other hired. Something has always smelled here.)

Nautilus Cove Condominium Assn, Inc. Emergency Board Meeting
Unapproved Minutes

Date: April 16, 2008


Seagrove on the Beach Property Management office, 5311 E. Co. Hwy 30-A, Santa, Rosa Beach, FL 32459

Call to Order:
Association Manager Ross Pritchett called meeting to order at 2:01 p.m. Central Time.

Board Members Present:
Dean Price and Jim Klohn via speakerphone. Jennifer Jones could not make the meeting, but replied to Ross Pritchett by email with her recommendation to rehire Seagrove on the Beach Property Management as the HOA manager.

Others Present:
Ross Pritchett and Samantha Jarrett- Seagrove on the Beach Property Management – Association Managers.

Establish Quorum:
A quorum was established with two of the three board members present via speakerphone. Both members waived notice.

Reinstatement of Management Company:
Dean Price moved that the association reinstate the management agreement with Seagrove on the Beach effective today April 16, 2008. (Update: this change only lasted until July 1, 2008 and the BOD fired Seagrove 'again' and Concord was rehired) Jim Klohn seconded. Motion passed 2 Yes. Voting Yes was Dean Price and Jim Klohn.

Jim Klohn moved to adjourn. Dean Price seconded. Meeting adjourned at 2:03 p.m.

Submitted by: Ross Pritchett, CAM Association Manager

** for the best copy go to their site at:

Monday, September 12, 2011

Misc Info FYI:  In my 9/7/11 post below I mentioned that in Florida the average foreclosure took 853 days (2 yrs 4 months).

I don't know that this is the longest one running here, but I noticed that John Thomas #401 has been in foreclosure with HSBC Bank since 2/13/09 with the next hearing set for 9/28/11. So on that date it will be 867 days in foreclosure (2 yrs 4 months 17 days) and last I heard he is still living in the condo and he still owes over $7,600 in Association dues.


Rental Condos: Concord vs. Owners

If you are an owner trying to rent out your condo you will find that you are in serious, and probably losing, competition with prices as Concord is asking less than owners for the Developers unsold 56 units.

Although renting from an Owner requires less BS and paperwork and it will probably get you a unit in a nicer part of the complex, the lower prices for the Concord/Developer units give their renters a $150-250 a month savings and almost a half price for the Security Deposit. 

Can an owner rent out their units?  Sure they can, but probably not until the Concord units are full and if they go head to head in pricing it might be difficult to break even.   Owners renting out their units might mean taking a loss every month, some Owners just can't hang on and have to let them go in foreclosure.

For Concord prices see:[id]/20254/ and