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Condo Troubles Further Squeeze Property Lenders (Those with deposits can't get mortgages)
Wall Street Journal ^
| 8.25.07
| ALEX FRANGOS
Posted on 08/24/2007 7:33:27 PM PDT by BurbankKarl
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To: BurbankKarl
"(Those with deposits can't get mortgages)"And they won't get their deposits back, either.
yitbos
2
posted on
08/24/2007 7:38:08 PM PDT
by
bruinbirdman
("Those who control language control minds." -- Ayn Rand)
To: bruinbirdman
Hold the sympathy. They are speculators.
3
posted on
08/24/2007 7:41:28 PM PDT
by
ClaireSolt
(Have you have gotten mixed up in a mish-masher?)
To: BurbankKarl
what a wonderful opportunity to buy 30-40c on a dollar
4
posted on
08/24/2007 7:45:05 PM PDT
by
Flavius
To: ClaireSolt
That is the truth. They commit to buy with the thought of reselling once its built. Consider it like an IPO. Pure Speculating.
To: ClaireSolt
And we know they’re all speculators because??? Lemme see your crystal ball.
6
posted on
08/24/2007 7:46:24 PM PDT
by
RockinRight
(Fred Thompson once set fire to a crowd of liberals simply by puffing his cigar and staring real hard)
To: Flavius
7
posted on
08/24/2007 7:52:56 PM PDT
by
TopoGigio
To: RockinRight
Mr. Zohouri, who goes by "Fred," says he is "an honest person" who is working hard to get his investors' money back. He says because of possible legal actions, he can't explain exactly what went wrong. You're right. They're not all speculators.
8
posted on
08/24/2007 8:02:17 PM PDT
by
VanShuyten
("By the simple exercise of our will, we can exert a power for good practically unbounded, etc, etc.")
To: BurbankKarl
While a single-family home builder generally constructs units as orders come in, a condo developer builds all at once and hopes for the best, adding risk. Buying in two or three years ago...things change. Sorry.
9
posted on
08/24/2007 8:05:37 PM PDT
by
Dianna
To: Dianna
Is there such a thing as saturating an area?
I visit the Outer Banks where the developers are in control, and it sure looks like they have completely saturated the market. Individuals who own rental properties a block from the beach are now having difficulty renting, and without a decent summer of rentals, they can’t afford to keep the place.
10
posted on
08/24/2007 8:15:14 PM PDT
by
elpadre
To: BurbankKarl
"The problems are emerging as some buyers who signed contracts to buy new condos two to three years ago, when construction was just starting,...." WHAT? It does NOT take 2-3 years to build a Condo....this is pure bull.....
11
posted on
08/24/2007 8:20:12 PM PDT
by
goodnesswins
(Being Challenged Builds Character! Being Coddled Destroys Character!)
To: elpadre
Yes, the condo market here on Panama City Beach is saturated. Hundreds are empty and unsold. Some were not even finished.
12
posted on
08/24/2007 8:23:16 PM PDT
by
jch10
To: RockinRight
Do you know what projection is? In this case, you assume I don’t know what’s going on, because you do not. That is a characteristic of poorly educated people. However, I live her in Florida and I watch and listen. I am sharing what I know, imagine that.
13
posted on
08/24/2007 8:23:38 PM PDT
by
ClaireSolt
(Have you have gotten mixed up in a mish-masher?)
To: goodnesswins
It does NOT take 2-3 years to build a Condo....this is pure bull.....I think you pegged it. My guess is that the lender required the developer to pre-sell a certain percentage, and now that the market has softened, some of purchase contracts aren't looking too good.
14
posted on
08/24/2007 8:27:25 PM PDT
by
PAR35
To: goodnesswins
That depends on what the building is like. They permitted one here about five years ago and then said it sold out in two and a half weeks. I am not sure it is finished, yet. The ones in Miami I have seen going up are fancy high rises.
15
posted on
08/24/2007 8:27:37 PM PDT
by
ClaireSolt
(Have you have gotten mixed up in a mish-masher?)
To: ClaireSolt
Miami has 25000 condos being built
To: BurbankKarl
I am wondering if thee contracts to buy later are a type of deritive. I hear them discussing them on Cavuto. I have sold contracts for future revenues and I have experienced that risk. These people want their money back. Maybe they bought a whole floor for pennies on the dollar. The developer sold the paper to raise capital, and now someone is holding a worthless promise. I am guessing. Do you know?
My daughter lives in Miami and she says that there are still lots of New Yorkers who will buy those condos.
17
posted on
08/24/2007 8:57:53 PM PDT
by
ClaireSolt
(Have you have gotten mixed up in a mish-masher?)
To: bruinbirdman
Deposits are held in a trust account, by law.
18
posted on
08/24/2007 9:16:48 PM PDT
by
free me
(Enforce the borders, then we'll talk...)
To: free me
Hopefully not a trust account that has exposure to subprime mortgage backed CDOs, though. What a mess.
To: ClaireSolt
Well, a lot of people that bought were speculators, and when the prices were skyrocketing, they sold their spots to other people, who then sold them to other people.
Since the prices of the condos are falling, people who are locked in to by the unit at a higher price are balking. In fact, the banks will only lend what they feel the unit is worth, 70 or 80 percent of the flipper prices.
San Diego is also getting hit bad....the houses at auction are fetching 70% of their peak “price” from 18 months ago....and it is just the start of the foreclosures. Condos usually fare worse. And apartment conversions to condos fare worse worse.
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