What Difference Does a Good Offer Make if Nobody’s Listening?

By
Real Estate Broker with Daytona Condo Realty, 386-405-4408

Friday is the day when the County schedules foreclosures for Daytona area properties. Used to be 2 days a week on average 30-35 properties a day. Not anymore. Today after a few cancellations, which is very common, there were only 5 properties left on the foreclosure list.

I drove all the way to Deland, our county seat, because there was one condo-hotel unit in Oceans Jewels Club going on the chopping block. The foreclosing bank is known for the deepest discounts, starting from 10 cents on a dollar of the balance of the loan. I did not expect 10%, but I figured that it was making sense if they would go for 40%.

I knew that the amount owned to the association was $16K, and it was making this deal not really likely. By law, no matter how the Buyer obtains the title, s/he is liable for the debt to the association in full. And if s/he does not pay in 30 days the Association can foreclose and end up owning the unit free and clear.

However, if the lender forecloses, then the Lender has to pay either one year's worth of maintenance fees or 1% of the original loan amount, whichever is less.

We tried to call the CAM (Community Association Manager) and ask whether the Board would consider accepting less money. It made perfect sense, as if the unit is foreclosed by the bank, then the association will only get about $400 (1% of the original loan amount, which was only about $40,000).

But we could not reach the manager.

While on my way to the auction, she called and explained that last time they had a similar situation, they only agreed to knock down late fees and interest, so we would probably have to pay $14K out of $16K if we buy the unit.

15 minutes before the start of the auction, I learned that the minimum the bank would accept was not 40%, as I hoped, but 60%, and it made the deal a loser. Just in case I called and asked to be connected to the manager, who again was out of the office, but they told me that she had already explained to me everything, so what on earth I wanted from them?

10 minutes later the bank took it for $100. There was no bidding. Sure, it made no sense. This is a shameful story how today the Association ended with $400 instead of $4,000 that I was offering.

What difference does a good offer make if nobody’s listening?

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Topic:
Real Estate General Information
Location:
Florida Volusia County Daytona Beach Ocean Jewels Club
Groups:
Condos, What you need to know?
Diary of a Realtor
Realtors®
All Things Florida
Condo Specialists
Tags:
daytona foreclosures
daytona auctions
auctions
about real estate

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Ambassador
1,304,494
Jon Zolsky
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

Gary - Honestly, I don't think that it is just the Board. I have a feeling that I could talk to the Board and show them the cards and explain how it works, they could look at it differently.

Oh, well.

June 02, 2012 01:11 PM
Rainmaker
251,276
Tim Bradley
Commercial Real Estate Expert in Jackson Hole, WY
Contour Investment Properties

Take your offer to the bank and buy it that way. Silly CAM.

June 02, 2012 08:36 PM
Rainmaker
97,165
Jennie Miller, PLLC
AZ Broker - Real Estate Services 480-382-9681
Buy/Sell/Rent Your Home in Phoenix Metro Area

The number of foreclosures has definatley slowed down here in Phoenix as well. 

June 13, 2012 10:03 PM
Ambassador
1,304,494
Jon Zolsky
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

Tim - Hmm, how did you know. that is what I am trying to do now. Good thinking.

June 13, 2012 10:12 PM
Ambassador
1,304,494
Jon Zolsky
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

Jennie - seems like trends are very similar

June 13, 2012 10:13 PM
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Jon Zolsky

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