Michael bought a 1,065 sq. ft. condo (1 bedroom 2 baths) from Deutsche Bank National Trust (trustee J.P. Morgan Chase Bank) in Aventura for $198,500 ($186 a sq. ft.). Another one, about 250 sq. ft. larger with one more bedroom, but on a much lower floor, sold for $417,000 ($320 a sq. ft.) during the same period. It is good to see that foreclosures are finally selling: But what kind of price is that? In the companion building (One is East and one in South) another 1 bedroom (but 1 bath) unit sold on the same high floor for $438,700 ($481 a sq. ft.) but was only 910 square feet.
Michael got a first mortgage from Countrywide Bank in January '08 for $178,650 on this $198,500 condo. In February '08 Michael got a second mortgage (with a future advance clause) for $50,000 from National City Bank. He now has loans for $228,650 on his $198,500 condo. So he got over 100% financing! And we thought banks have learned a lesson. What's up with this financing? And, what a deal! I reported on this or its companion building before, not just once I actually reported on it twice!! The prices in these two buildings don't make any sense. Finding reliable comps here will be an appraisers worst nightmare.
These two condo towers are not on the infamous Bank United list.
1 comment:
The foreclosure in condo units starting to rise. I feel sorry for those who has no choice but the leave their place. We can do nothing if they can no longer provide a payment. They have no choice but to leave
Post a Comment