The scorecard so far on the 9 units that NCC filed foreclosures on:
106 Davis - Sold before June auction, delinquency paid off
306 R Smith - Sold at May auction to private party and delinquency paid off
401 Thomas - Taken by NCC at auction 3/30/12 for $200 and rented out
513 McRitchie - Sold before June auction, delinquency paid off
506 Glass - To Be Auctioned 6-5-12
615 Gayatin - To Be Auctioned 6-5-12
701 Jarrett - To Be Auctioned 6-5-12
702 Ussery - Taken by NCC at auction 3/30/12 for $300 and rented out
705 Reyes - Taken by NCC 3/30/12 at auction for $200 and rented out
Of the 9 units we 'temporarily own' three (401, 702, 705) which are rented out and 3 more are coming up for auction June 5th. We may also end up with these 3 condos to rent out.
Whether we end up making money on these temporary rentals or end up in the hole depends on just how long we can retain possession of the units and collect the rents on them. All 3 (or 6) will end up going to the mortgage holders eventually.
If we had not taken the 3 units (or perhaps 6) the mortgage companies would have eventually paid off the delinquencies in order to take title. There is a Florida law which in theory limits such payments to 12 months of delinquent dues or 1% of the highest mortgage amount, whichever is less. In the past the mortgage companies or banks have just paid up in full, they either don't know of the law or don't care, they just pay.
By 'cutting in line' so to speak, in front of those mortgage companies who had already filed foreclosures we managed to get title before the mortgage companies could finish their more complicated cases (all of which are still active in the Court) and now we have possession, but we can not sell the 3 units.
So whether or not we end up ahead in this mess comes down to being able to keep them rented out until we equal or exceed the amount that was owed on the units.
Say we rent out the average unit for $900 per month, in the case of #401 Thomas, the amount owed to us (delinquent dues, lawyers fee, court fee, etc) was $11,566.74, so simple math shows that we must hold the unit and have it rented out for 13 months to break even.
However it isn't quite this simple, as during the months we 'own' it we are NOT getting any $225 monthly condo dues (remember WE own it and are not paying outselves) so our income is not $900 a month but only a net of $675, this take us up to 17 months we must own and rent out the unit to break even.
But wait, we now must pay property taxes on it, just like any other Owner and also we must pay both the County and PCB taxes for all rental income we get from the units if rented out for 6 months or less, by my back of the envelope calculations we need to hold and rent out the unit for at approx. 20 months before we pay off what was owed to us plus taxes.
If we go past 20 months, we 'might' make money, anything less then we 'lose' money. I think that if you want to gamble then you should go to Vegas, we don't need all this fuss and bother and we should have just waited until the pokey banks and mortgage companies finished their foreclosures and paid us.
One more thing that we will be on the hook for is additional legal fees (above the 24k already paid to Hess/Applebaum) when the banks and mortgage companies come after us for taking their condos. Probably another $1,000 or so per unit.
We should have left well enough alone, only the Association lawyer is going to be sure of making money on this bad idea.
Forfurther info on this topic by a realty professional see the 5/5/12 article 'Associations Foreclosing and Owning Properties' at: http://www.ccfj.net/ForeclSRarticle.html
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Here is an item from the "Be Careful Who You Send Your Email's To" department it comes one to me from Board member Ms. Troncale who in part comments on the above post about the 9 foreclosed units, and I will be pleased to share it with you on the basis that you just might find it interesting to see what the Board thinks of Owners here, both myself and someone with a chair:
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Subject: Re: Foreclosed units
Date: 5/5/2012 6:54:38 P.M. Eastern Daylight Time
From: edeetroncale1@gmail.com
It seems to me Mr. Harris is never happy. I believe he is the one who wanted the board to purchase these units! I think it's time the harrassment Mr. Harris is causing to our community be addressed. I personally am very tired of it. He only finds the un negatives in this community and down plays it the public which to me is nothing but harrassment!! I think that this should be addressed and the way that he has belittle Roxanne. I hope we can all sit down and discuss this matter. I think the fact that we have recoved some of our loss is a great improvement.
As far as the unit with the wrong chair, personally the should receive a written warning, then fined. We need to start cracking down on things around here!
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Gosh, I even voted for her! Guess I won't do that again.
And just for the record:
1) I have opposed the Asso. using foreclosures against Owners even before the first unit (McRitchie) was filed on and I never wanted NCC to take over any Owner unit,
2) I have mentioned to the new BOD and others, that I know of at least 3 times that Ms Turnipseed has lied to me and indeed I do not hold anyone at Concord in high esteem and have said for 2 1/2 years that we need to remove Concord from the management of the complex.
3) Whoever has the 'wrong chair' better watch out - Edee is apparantly pissed off at you and wants you fined!
