Problems Selling NCC Condos

For 2 1/2 months a potential buyer of a unit in the 5 building got the run around on picking up the short sale. He was twice declined and writes of his problems below. 

The unit he wanted is now back on the MLS listings (MLS: #505794) at a $2,800 lower price than the 67K he would have paid for it. 

"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."

I checked the HUD/FHA Approvals listing at https://entp.hud.gov/idapp/html/condlook.cfm and found that the approval for NCC expired 3/31/11.

A local broker says that: "banks are offering limited financing across the board, not just at Nautilus Cove".

So you may have people interested in buying your condo but they are not able to get approval for their loans.

 

 

Also see the www.consumerist.com article on the topic of short sales at:  http://tinyurl.com/9co2tgd

If you want to inspect or copy our NCC condo records you can:

Click on document for a larger image:

click on for larger image 

Local Landmark may be rebuilt

On April 29, 2010 the Thomas Drive 'Treasure Ship' restaurant was totally gutted by an electrical fire, over 100 employees were put out of jobs. The restaurant had been in business next to the marina on the Grand Lagoon since 1978 and was a noted area landmark.  The loss was over $1,000,000 and at the time it was judged by the owners to be too expensive to rebuild.

The County Commission is holding hearings on a proposal to redevelop the site to include restaurants, hotels and retail businesses with a max. height of buildings being 100 feet. The boat service shop and 2 storage barns would be torn down.  

Currently the land is simply a grassy area with the structure totally removed.
Details at: http://www.newsherald.com/articles/treasure-104614-hear-panama.html#ixzz23BBcHE9X

What has sold the last 3 yrs?

NCC Condo Sales in 2012

Unit #, Name, Date of sale, $ Amount
       New Owner/Former Owner

#106 4/3 T. Georgekopoulos 2/16/12 $83,500
                G. Davis 11/14/06 $193,900

#205 3/2 T. Georgekopoulos 2/16/12 $83,500
                M. Reed 11/9/06 $159,900

#213 3/2 R. Grath 2/10/12 $68,500
               B. Clark 5/2/07 $152,900

#307 4/3 Feng Huang  5/25/12 $101,803
               J. Cahours 11/17/06 $193,900

#405 4/3 D. Wiltshire 6/18/12 $87,000
               Kennedy 7/26/07 $176,000

#513 2/2 P. Georgekopoulos 3/20/12 $65,000
               K. McRitchie 2/26/07 $152,900

#601 3/2 Andrew Scott 6/15/12 $81,000
               Karami 11/6/06 $163,100

#602 3/2 Chas Tucker 2/24/12 $105,000
               M. Bevins 2/15/07 $152,900

1603 3/2 D Krasnova 3/23/12 $74,900
               J. Sheppard 3/13/07 $163,100

Only foreclosures and short sales are selling, and those at 40-50% of original sale prices.  Individual sales by Owners are non-existant.

Also sold but awaiting final paperwork are #403 (4/3) old Dinz Unit sold for $80,000 and #515 (2/2) the old Hupp unit went for $67,000.

NCC Condo Sales in 2011
(Due to the downturn in the economy the developer does not anticipate any further sales for their 56 unsold units, they will contunue to be rental units.  The 'average' paid for a foreclosed/short sale is 42.7% of the units original sales price)

#308 WILLIAM MALCOMSON - 10-28-2011, 4/3
Sold for:  $80,000  Originally sold for:  $194,900 on 2/26/07
  Current Owner paid 41.0% of original sale price

#1608 CLIFFORD MYERS - 10-7-2011, 3/2
Sold for:  $67,500  Originally sold for:  $169,900 on 3/30/07
  Current Owner paid 39.7% of original sale price

#203 WILLIAM MALCOMSON, - 06-03-2011, 3/2
Sold for:  $70,000  Originally:  $159,900 on 10-20-06
  Current Owner paid 43.7% of original sale price

#210 GEORGE GEORGEKOPOULOS, - 05-06-2011, 3/2
Sold for:  $73,000  Originally:  $179,900 on 5-25-07
  Current Owner paid 40.5% of original sale price

#502 TED GEORGEKOPOULOS , - 05-06-2011, 2/2
Sold for:  $65,000  Originally:  $160,000 on 7/23/07
  Current Owner paid 40.6% of original sale price

#102 EDITH A TRONCALE, - 03-28-2011, 4/3
Sold for: $90,000  Originally:  $184,900 on 12-18-06
  Current Owner paid 48.6% of original sale price

#1404 THEODORE SEXTON, - 03-28-2011, 4/3
Sold for:  $110,000  purchased directly from developer

#1606 THUAN NGOC NGUYEN, - 03-24-2011, 3/2
Sold for:  $75,000  Originally sold for:  $164,900 on 4/27/07
  Current Owner paid 45.4% of original sale price
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NCC Condo Sales in 2010:

Unit - New Owners  -  Pur. Date  -  $ Amt. Paid
#604  MICHAEL COVINGTON,  12-30-2010 - $70,000  3/2
#716  JERRY R. CLAYTON,  09-09-2010 - $84,000  3/2
#512  MARK F. STITT,  07-08-2010 - $69,900  2/2
#710  WILLIAM R. COVINGTON,  06-17-2010 - $89,000  3/2
#714  RANDALL G. WRIGHT, 05-17-2010 - $89,000  3/2
#606  JOHN R. GUOTH,  05-06-2010 - $77,000  3/2
#305  KEVIN G. RILEY,  04-07-2010 - $110,500  4/3
#712  N. HOOKS,  03-08-2010 - $94,000  3/2

Q) NCC now officially 'Owns' 5 units here - but do we actually 'Own' them?

A)  No, they are advertised on Craigslist to rent them out.
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$795 / 2br - 2 Br, 2 B Condo For Temporary Home (Panama City Beach)

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Date: 2012-06-28, 11:57AM ED ^[Reply to: bcmht-3106404575@hous.craigslist.org

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Leasing today, 2 bedroom, 2 bath condo just down from the pool.

Note: The HOA is holding title to this unit, which is being foreclosed on by the bank, so the lease will be for six months and one day. The bank is required to honor the lease or buy the renter out of the lease if the foreclosure moves forward before the lease ends.

A $50 application fee per adult is required, and no pets will be accepted. There is a $500 deposit due at move in.

This is perfect temporary home in Nautilus Cove, 13700 Panama City Beach Parkway. (850) 235-1009.

First approved applicant(s) can move right in!

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We ended up with 5 units which are available on a temporary basis to rent out, as we can't sell them as all five have first mortgages on them from institutions that lent the money to the original buyers and those filings take precedence over our deeds.  So those banks or mortgage companies will eventually come after us so they can take title and auction them off. We have them on a temporary basis and can and are renting them out.  

I believe most are going in the area of $795-895 a month and those funds will be used to pay down the delinquencies owed.  There are some problems with this and here are a few:
1)  So we collect $795 a month in rent, however, that really is only $570 because we don't get the $225 in 'dues' as we own the units,
2)  We have to pay taxes on them and in some manner we must be paying extra for insurance on them,
3)  My back of the envelope calculations indicate that we need to retain and rent them out for between 18 and 20 months to 'break even',
4)  When the first mortgage holders eventually wake up and come after us we will incur additional legal expenses of an unknown amount.
5)  Our lawyer (Hess/Applebaum) have made over $20k in profit so far, they are the only ones who will actually make money on this course of action.
6)  Obviously we are responsible for keeping the units up so they can be rented out, possibly painting, carpet cleaning, anything broken that needs to be replaced etc.

So we now have 5 units, so ask in 2 years and find out if we lost money or broke even.  

I can't see us actually coming out with any profit and I hope we don't get involved in filing any more foreclosure actions, leave such things to the banks and mortgage companies and we will collect from them when they sell the units, we have liens on all of them that have to be paid before any clear title can pass to new buyers.

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Misc: The units we now own and their original owners are-
506 - Grass
701 - Jarrett
401 - Thomas
702 - Ussery
705 - Reyes

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NCC foreclosed on additional 2 condos for unpaid assessments and took 2 of the 3. These units are not saleable and will eventually have to be surrendered to the banks and mortgage companies that hold the first mortgages.

In order to break even we will have to retain them for 18-20 months.

For a larger image right click and 'open in new window'

405 and 601 Sell for 49% of Original Sale Prices

The old Joseph Kennedy unit, #405, a 4/3, 2nd floor parking lot side condo, was sold by Flagstar Capital 6/8/12 for $87,100 to David Wiltshire of Dothan. The unit sold originally to Kennedy 7/26/07 for $176,000. Taxes last year were $1,049.

The former Karami condo #601, a 3/2, ground floor parking lot side condo, was sold by Fannie Mae on 6/15/12 for $81,000 to Andrew Scott of John's Creek, Ga (Atlanta metro). The unit sold originally to Karami 11/6/06 for $163,100. Taxes last year were $512.