Thursday, March 22, 2012

#213 sells for 40% of original price

Unit #213, a 2nd fl 3/2 sold to Richard Grath of Point Pleasant Bch, NJ for $68,500. It was purchased from EMC Mortgage/Fannie Mae and it is the old Brian J. Clark condo which was originally purchased 5/21/07 for $169,900. 

The recent sale is $101,400 less than the 2007 price and is 40.3% of that price.

We have approx 15 units in various stages of Foreclosure at NCC, most will sell at 40-50% of their original sale price.  For those attempting to sell their own condo you will have to have it on the market at around the 50% of price you paid for it in order to generate any interest among buyers. 

Those with mortgages may not find their lender interested in doing a short sale and such sales often either fall through or take so long that the buyer just gives up.  Those few who paid cash really have no option but to remain or take a 50% loss on the original purchase price.

In the short term it is a buyers market, prices are attractive and even here at NCC we see investors buying several units to rent out, of course they are buying the distressed and foreclosed units that the banks and mortgage companies have in their inventory and they are not buying the developer units or units that individual owners have put on the market. 

This will not change for the rest of the year considering the amount of foreclosed units now in the system and another 8-10 heading for foreclosure later in the year.

Tuesday, March 20, 2012

Nautilus Cove - From a Condo to Rental Apartments


As the changing signs reflect, for nearly 3 years the emphasis on the developer owned units has been on renting them out as sales of NCC condos have evaporated. The distressed Nautilus Cove condos (foreclosure and bankruptcy) are coming on the market with heavily discounted prices as the banks try to move their unwanted inventory.

For the developer or individual owners to compete with these units there would have to be very steep price reductions to sell them, thus renting the units out is probably the only realistic way to deal with the backlog of condos waiting to sell.


For the foreseeable future we will be living in a complex where 3/4ths the units are occupied by renters.


See rental info for Nautilus Cove Apartments at: http://nautiluscove.com/
While developer prices have dropped dramatically, there is no chance they will sell even at the reduced prices.  The 56 unsold units are on the market for a bulk sale for $6,720,000.  Marketed as  "Suitable for rentals as 'low income housing'.  They have generated no current interest although at one time there was a nibble but it went nowhere.  (Feb 4th post for details)

Friday, March 9, 2012

Nautilus Cove Condo
13700 Panama City Beach Parkway, Panama City Bch
Price: $6,720,000  
No. Units: 56
Price/Unit: $120,000
Property Use Type: Investment
Commission Split: 1.5%
Occupancy: 86%
No. Stories: 2
Year Built: 2007

Highlights
59% Huge 4 Bedroom 3 Bathroom Units
Huge Resort Pool
Beautiful Club House
Only 8 Blocks to Public Beach
Great Drive By Traffic for Rentals
Huge Potential for Selling as Condos when Market Recovers
Description
56 beautiful condos in the Nautilus Cove community. These are new construction (not condo conversion) condos with granite counter tops and stainless steel appliances. The mix is 33 four bedroom, three bathroom; 10 three bedroom, two bathroom; and 13 two bedroom, two bathroom. All financial information, building size, lot size and other information in this listing will need to be confirmed by buyer.

Nautilus Cove is located just 8 blocks from a public Gulf of Mexico beach and less then 1 mile from the new Pier Park shopping district. The new international airport is only 12 miles from the property.

Monday, March 5, 2012

Today there is a new Owner of condo #601

UPDATE:
I was watching the auction today in real time and as I guessed BAC has picked up the unit for $100.  I know that we all would like to bid on these things, who wouldn't want a condo for $100, but I understand from the clerks at the courthouse that if these banks and mortgage firms encounter competing bids, then they will just keep bidding up to the amount of their note.

So if you were to bid then likely they would just keep raisisng their own bid.  It will be interesting to see what  will happen on March 30th when 4 of our units come up for auction.
 
2 have no other foreclosures but ours and 2  do have (705 Reyes has Deutsche Bank and 702 Ussery has BAC Home Loans), the 2 that don't have any foreclosures pending but ours are 306 Smith and 401 Thomas.
====================================

Auction Sold
03/05/2012 11:25 AM CT
Sold To: Plaintiff    Amount: $100.00
Auction Type:FORECLOSURE
Case #:10002061CA
Final Judgment Amount:$164,387.46
Parcel ID: 40000-100-058
Property Address:601 CAPE COD DR 601
PANAMA CITY BEACH, 32413
Assessed Value:$77,675.00
Plaintiff Max Bid:Hidden

=========== older post ==============
Probably BAC HOME LOANS who will then list it with a realtor for about half of the $163,100 that Karami paid for it 6/11/06.

Auction Starts 03/05/2012 11:00 AM CT
<><><><><><><><><><><><><><><><><><><><><><><><><><><><>
Auction Type: FORECLOSURE
Case #: 10002061CA
Final Judgment Amount: $164,387.46
Parcel ID: 40000-100-058
Property Address: 601 CAPE COD DR
Owner:   Alamdar Karami PANAMA CITY BEACH, 32413
Assessed Value: $77,675.00

You can keep up with sales at NCC on this site or at: www.bay.realforeclose.com/index.cfm  or even register with the County and bid on them yourself.

See also Karami post of 1/24/12:  http://nautiluscondosrules.blogspot.com/2012/01/601-karami-foreclosure-completed-by-bac.html

Friday, March 2, 2012

Nautilus Cove Condo Foreclosures against delinquent Owners

With Owner delinquencies over $100,000 for the last 1 1/2 years, NCC is now in the process of foreclosing on 11 units, 9 of which have already had foreclosures filed on them by various banks and mortgage companies.   Due to the nature of foreclosures in Florida, it is much easier and quicker for an association to prove an Owners indebitness than it is to put through a foreclosure for non-payment of a mortgage. (ie: 3-4 months v. 2 yrs +)
Such condo foreclosure tactics to recover delinquent dues have been in use in Florida for some time, and it has become popular by lawyers for the condo associations to encourage this litigation, probably because it generates approx. $2,500 profit for the lawyer per case (11 x $2,500 = $27,500)

Whether this filing by our prior Board will result in improving our delinquency situation or opening up other problems for us remains to be seen. The first 4 of the 11 foreclosures will be sold electronically March 30th via: https://www.bay.realforeclose.com/index.cfm  2 of those condos have existing foreclosures already filed by banks, 2 do not.

Note:  In Florida a condo association foreclosure has no effect on the first mortgage.  The first mortgage holder has a lien that always survives the condo association's foreclosure.

Below are some considerations to our taking over the units via these foreclosures. In effect NCC is giving some major players, who have already filed their foreclosures, a poke in the ribs by cutting into line to get our foreclosure before they can obtain their judgment.

It seems that the Foreclosure idea is:
1) to toss out by eviction any owner or tenant in residence,
2) fix up the unit,
3) rent it out and collect the rent

The flip side of this coin seems to be:
1) How long will this unit be 'ours'? (a couple of months or a couple of years?)
2) How much 'fixing up' is required to make it rentable, (if the bank takes it from us we have in effect 'donated' any repairs, carpet, fixtures etc)
3) How much legal expense will we incur when the first mortgage holder litigates to get back their condo?
4) During the time we are in possession we:
    a) are responsible for taxes and any utilities consumed,
    b) we lose out on the $225 monthly assn. dues

You might wonder just how realistic is it for us to initially take over these units if the first mortgage holder is going to come after us to take it away?   If we  end up with some or all of these condos and have Bay County issue us with a title then we have full but temporary responsibility for the units. As I understand it we can not sell them.

I believe the new BOD will have some information for us in the near future.   Over the course of the next six months we will learn first hand whether or not this was a good idea.

Additional reading at: 'Another Option for Recovery
Against Delinquent Owners' By K. Joy Mattingly, Esq.:
http://tinyurl.com/796rjhd

and 'What Happens After the Association Acquires Title by Foreclosure?' at: http://tinyurl.com/7pf4w87

For dozens of interesting condo articles from the Sun Sentinel go tohttp://blogs.sun-sentinel.com/condoblog/