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Diana Flood, Home Buyer in Clearwater, FL

Why are there so many forclosures, bank-owned and Freddi Mac properties at the Colony in San Jose and no regular resale properties?

Asked by Diana Flood, Clearwater, FL Wed May 29, 2013

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Well here is the dilemma? Once the boom busted, and people could not sell their properties, they began to default both on the loan and the hoa fees. That knocks the property off the list of approved government lenders, then conventional lenders won't touch them either. So nobody can get a mortgage for the property even if they really want it.

That leaves only cash buyers and investors. If the investors reach more than 50%, that also keeps buyers from getting a government backed mortgage if the other financials get better. It's a very viscious cycle and has happened to many condo communities in Florida.

I asked a lender a few days would it would take to get this turned around, as the prices on condos are a good investment for first time buyers, and he said "A Miracle". Its a real shame.
1 vote Thank Flag Link Wed May 29, 2013
That is an indication that during the boom of 2005 many people who bought went above their limits or that those buyers have lost income during the recession. When you see regular sales, those were buyers that were able to keep up with their payments and got to built equity on the property, which they are now trying to get profit from. Was this answer helpful? If so please click on the "green thumbs up" or the "best answer".

Tony Vega
Antonelli Realty
1 vote Thank Flag Link Wed May 29, 2013
During the "Bubble"...the Colony in San Jose was one of the least expensive condos available. (It was a rental property converted to condos). Many people purchased these properties and many of them used preditory lenders who led many buyers to place themselves in a position that was less than ideal. Many of these buyers did not understand the condo concept...and many were in jobs that disappeared during the recession.
When people lose their jobs.....have condo fees they cannot pay....when they purchase with no money down and many paying interest only.......when values "tank" have forclosures.....
If you are interested in knowing more about various condos in the Jacksonville my son, Hickory, or me, Donna, to expore ALL your options. Hickory Delegal/
(904) 463-5664 Donna Delegal ("The Real Estate Lady") (904)732-PACK (904) 732-7225
0 votes Thank Flag Link Wed May 29, 2013
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