Hank Miller - Broker/Appraiser

You'll need blessings if you try that. We're in this position because of reckless management of credit and irresponsible lending - don't add to the problem.

Clearly you know it's not wise to buy a second home if your first one doesn't sell - there's no real mystery to how that will end. Sounds like you might be asking about "buy and bail"; buy another home and let the first one go into foreclosure...I've heard of lenders starting a "look back" period on that move so you might want to really consider things before making a decision.

Hank - A few minutes ago

Mike - at 25K in Buckhead you should be OK, hell you can rent that and still be fine if it goes worst case. I would go easy on the 3/2 vs 4/2 deal - as I wrote that could turn it into a "boarding house" feel....

Hank - Fri Jul 10 2009, 14:29

Good calls Stacey and Jeff, dead on with the info. Now my two cents that echoes Stacey's point about the Atlanta condo market....it's a train wreck and will continue to be for the foreseeable future. I've been in the RE biz both selling and appraising here in Atlanta since '94 (6 years as the SE senior review appraiser for a huge private lender out of NY) and the idea that Atlanta can support an "in town" business/residential marketplace like NYC, Boston, Chicago, SF or any of those major cities is a pipe dream. The run up for the Olympics was driven by masterful PR; many of the towers that went up during and after the games quickly ran into occupancy and financial issues. We routinely passed on deals when during reviews, I’d find entire floors on which construction hadn’t started, floors being reconfigured to smaller less expensive units, developers looking to dump interests and cut losses and other signs reaffirming what we already knew. Today you see repeated major auctions just to unload standing inventory, this city cannot support the condo inventory and it won't anytime soon.

As far as buying on the steps, you better go in eyes wide open because those are shark infested waters. Unless you do thorough research on the unit, the project and the trends for the area you can make a big mistake; you stroke a check and get a pat on the back, keys and potentially a whole lot of trouble. Remember, it's easy to get in but one day (often sooner than expect) you have to get out. Look at it like a mouse trap, just as you get the cheese it’s lights out.

I would strongly suggest that you re-evaluate the condo idea as they are depreciating assets; single family detached is a better long term option if that's feasible for your situation. Don't forget as well that as a condo owner you are inextricably tied to the fate and financial stability of the building in general; think about all of the owners facing significant association fee increases, watching units being foreclosed, going short and going to auction. I could bore you with the calls from owners asking me for advice on how to help them eject without getting slammed; there isn’t anything good for me to offer.

Sorry to be a bit negative but I’ve been around the Atlanta condo market and have seen it from several perspectives, none are good and unless there are unique or special circumstances involved I recommend my clients think long and hard before jumping in.

Hank Miller, SRA, ABR
Associate Broker & Certified Appraiser
Prudential GA Realty
678-428-8276 - Thu Jul 9 2009, 05:23

As Deryk pointed out, each community is handled differently. Understand though, and I'm certain that you do, this isn't exactly unique to your situation. Many communities have raised fees on the paying residents to cover shortfalls or applied special assessments to do the same. Not paying may result in legal action being taken against you and I have seen owners pushed to wht wall over this very thing by HOAs and management firms.

If you have issue with how things are being handled then you need to research the topic and look into the best course of action to correct it.

Hank - Fri Jul 10 2009, 14:19

Research and secure a buyers agent, tell them what, where, how much, important requirements of a home....and let them work. Individuals trying to find accurate foreclosure inventory in this market are hitting walls...it's hard enough for us!

Keep you expectations reasonable, there aren't bargains just lining up.

Hank - Fri Jul 10 2009, 04:53

Katrina is dead on, I've heard many horror stories of well intentioned agents getting blasted for cleaning junk out of homes without a clear understanding from the owner as to what they considered junk. Find the family, there is someone with POA and that is where you need to go for permission. Get a clear, written summary of how the clean out will go, ensure that relatives get inside and take what they want and be certain everyone knows everything - and put it in writing and have it signed by all involved parties.

I do a ton of Fannie foreclosure appraisal work, I know local clean out crews and agents that can refer good ones if you need a name.

Hank - Fri Jul 10 2009, 04:50