Monday, October 02, 2006

Mortgage Broker Forced into Short Sale on Downtown Condo at Acqua Vista #206

More evidence that the real estate slowdown is starting to impact local investors, this Acqua Vista unit is noted as a vacant and staged short sale by a mortgage broker.

Acqua Vista isn't a stranger to this blog, note this was an original purchase from the developer and not a flip purchase which is also an interesting detail as this would seem to indicate that at least a portion of the original sales between the developer, Hovnanian Enterprises, Inc, and the original buyers have now yielded a negative return.

Another interesting detail is lists five Acqua Vista properties currently undergoing foreclosure proceedings.

Type: Listed on MLS(#066083899)

Resale Price: $329,000
(Range priced $299,000 to $359,000)
Cost: $355,000

Loss@6% Sales Expenses: $45,740
Loss%: 12.88%

Purchase Date: 10/28/2004
Holding Period: 24 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 821

Purchase Details: view


Anonymous said...

Five properties in the same building in foreclosure proceedings. That's just amazing. I don't think there has been a time in San Diego's history when a major condo building like this has faced such immediate problems over a big decline in value. This is uncharted territory, and I don't think anyone really knows the ripple effects. What happens when these units stop paying HOA fees, if they haven't already. Presumably the value never drops below the level where a new buyer could be found to pay off the fees and take title, but it must be a cash flow hit to the Association and the other owners.

Mr. Brightside said...

That's an interesting question, I do not know if the HOA has a lien on the fees due.

I'm sure a few units not paying is expected however if this becomes a chronic problem then the HOA fee would have to go up for everyone else.

I imagine though that the prices of the unit would relatively quickly go down to a point where an investor would buy the unit and rent it out. Acqua Vista after all was meant to be a rental property.