Housing’s ills imperil condo deals
Horacio and Patsy Parra cashed out two retirement accounts last year to buy an Orlando condominium they couldn’t afford.
At the time, they weren’t worried. The developer, Cay Clubs Resorts & Marinas, agreed to lease back the $307,000 unit for 15 percent of the sales price — enough cash to cover the mortgage for nearly two years.
But the Parras now expect to lose their unit to foreclosure, they say, because Cay Clubs owes them about $40,000 in unpaid rent.
Fueled by investors’ hunger for resort condominiums, Cay Clubs vaulted from a small start-up in late 2004 to a major developer whose 14 properties and marinas include eight in the Florida Keys. The firm, whose billboards dot the Overseas Highway, says it manages nearly 3,000 condominium units and more than 900 boat slips.