When a developer cannot sell all their condo units, their scumbag lawyers tell the developer not to pay the bankers that financed the developer. So, what is happening at the Residences at Coconut Point and other condo developments in America is a nightmare process. Read about it at the link below:
http://www.trulia.com/voices/Foreclosure/What_happens_in_when_a_condominium_complex_goes_in-30522
What it appears to be happening at the Residences at Coconut Point is the developer is bailing on the project and is not going to honor it's promises made to the bank and to the prior condo purchasers. This process specifically at the Residences means the developer defaults and the condo properties not sold go into receivership. The bank the developer screwed hires a company to dump the remaining unsold units. A company called Patten.
Patten typically pays around 50 cents on the dollar and then aggressively tries to sell the units quickly. First, Patten will do heavy advertising and try to sucker in some initial buyers. Pity the new buyers. Because Patten will continue to drop the price quickly within a short time frame as they lower the prices of the condos close to their 50 cent dollar purchase. So even if Patten sells a condo for 60 cents on the dollar, they are still making money. A ten percent profit.
Further, in these kind of situations, typically there will be a huge special assessment against the current condo owners to keep maintaining the common areas of the property. Who makes all the money? Scumbag lawyers as the developer merely repeats this process all over again, usually in a different state.
So going forward, expect a rapid decline in the market prices of condo units at the Residences at Coconut Point. May be a buying opportunity for some vultures and scumbag lawyers out there, as they cherry pick what is left.
http://www.trulia.com/voices/Foreclosure/What_happens_in_when_a_condominium_complex_goes_in-30522
What it appears to be happening at the Residences at Coconut Point is the developer is bailing on the project and is not going to honor it's promises made to the bank and to the prior condo purchasers. This process specifically at the Residences means the developer defaults and the condo properties not sold go into receivership. The bank the developer screwed hires a company to dump the remaining unsold units. A company called Patten.
Patten typically pays around 50 cents on the dollar and then aggressively tries to sell the units quickly. First, Patten will do heavy advertising and try to sucker in some initial buyers. Pity the new buyers. Because Patten will continue to drop the price quickly within a short time frame as they lower the prices of the condos close to their 50 cent dollar purchase. So even if Patten sells a condo for 60 cents on the dollar, they are still making money. A ten percent profit.
Further, in these kind of situations, typically there will be a huge special assessment against the current condo owners to keep maintaining the common areas of the property. Who makes all the money? Scumbag lawyers as the developer merely repeats this process all over again, usually in a different state.
So going forward, expect a rapid decline in the market prices of condo units at the Residences at Coconut Point. May be a buying opportunity for some vultures and scumbag lawyers out there, as they cherry pick what is left.
