Friday, November 02, 2007

Four Acqua Vista Foreclosures

Over the last day or so foreclosure.com lists four Acqua Vista condos that are end the end of the foreclosure process.

Units 222, 536, 858 and 1106 to be specific.

I think it is safe to say at this point in time that every unit in the building is worth less than the original developer price.

7 comments:

Anonymous said...

thanks for the update.
Glad to see the downtown come back down to reality.

Mark in San Diego said...

The Union Trib finally did a front page story last week about HOA's payment problems. . .this is what I have been ragging about for over a year - more and more associations are in trouble because people are not paying. . .it featured CityFront Terrace as having a lot of non-payments, but Aqua Vista must be at about the 10 to 20% rate by this time.

Mr. Brightside said...

Mark,

I recall well your concerns and discussion in this area. This is a very important topic as any HOA budget problems impact the value proposition of the building as you're either getting fewer services or are going to be paying more for what you're already getting. In a normal and rational marketplace this value reduction, all other variables held constant, should lead to a discount of the value of the unit.

The one key detail that we can't seem to find out for certain on is if the fees are lost forever or if the bank has to pay in the event of a foreclosure proceeding.

Dave over on the SDLookup.com forums makes this point in a
discussion thread
about the UT article.

Anyone that can help us get a to final answer please chime in.

Mark in San Diego said...

I was on the board of a condo association in Northern Calif during the early 1990's, and we had a lein on a foreclosed property. . .it was sold below the value of the bank loan, so the association got zip. The bank, as to my understanding, would not pay back homeowner dues that were owed by the former owner, but would pay the dues during the period the bank owns again. . .so if it took 3 months to sell the unit, the bank "should" pay during those three months.

We are living in interesting times - what started out as a subprime problem in a few cities, has turned into a world-wide banking crisis . . .getting a lower price on a condo may be the least of our/my worries if the economy collapses!

Mr. Brightside said...

Wall Street is taking losses now which is a great sign. There will need to be more of this and then the usual legal and legislative wrangling. The potential for an over-correction on the downside is getting higher.

In my judgment we will need to see at least a few major players go bust, we've lost a lot of mortgage companies however a homebuilder and probably a mortgage insurance operation would also be lost. Basically the weak or ulta leveraged market participants won't make it.

Anonymous said...

still waiting for AV to hit bottom.

Anonymous said...

HEY Mr. Brightside. Hope to see you back soon.