Fifth Third works to turn around troubled Florida loans

Fifth Third works to turn around troubled Florida loans

The more Mike Trombley heard about the Cay Club development in Clearwater, Fla., the more he liked the idea of investing in it.

The sales pitch he got in late 2004 was the clincher: Buy now and get in on a luxury 5-star resort featuring renovated condos, a private water park, a marina, a spa and a shopping mall packed with high-end retail stores.

Investors say Cincinnati’s Fifth Third Bank offered them 100 percent loans requiring no money down, and the developers promoted a lease-back program that allowed buyers to pay nothing for the first two years.

And then there was the appeal of buying property in Florida, where real estate prices were steadily shooting up.

Miami’s Fisher Island Enjoying an Uptick in Uber-Lux Condo Sales

Miami’s Fisher Island Enjoying an Uptick in Uber-Lux Condo Sales

According to several local real estate professionals, the ultra-wealthy residential island community of Fisher Island is experiencing a strong increase in sales activity in the latter half of 2009, amidst a tough real estate economy for most.

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Phyllis Winick, on-island broker of Fisher Island Real Estate stated, “Sales are up over 30% this year over 2008 and numerous European buyers are planning to purchase residences here in Miami during this winter season. This will have a major added impact on the real estate market here on Fisher Island and South Florida.”

Several other off-island luxury condo brokers in South Beach also stated they are seeing a stronger increase in showings, offers made and closings in the latter half of 2009 for Fisher Island properties.

Recorded real estate sales data on the island confirms these statements.

Condo buyers allege flipping scheme

Condo buyers allege flipping scheme

Back in 2007, Steven and Joan Haber paid $260,000 for their retirement home in Charlotte County, a short drive from the multimillion-dollar beachfront estates of Boca Grande.

The Condominiums at Waterside seemed like a steal. Within 18 months, the buildings were sold out and the newest units were fetching record prices despite a statewide real estate slump that had brought condo sales elsewhere to a halt.

But it wasn’t long before the Sarasota couple’s anticipation turned to anxiety.

Two of every three buyers in the complex stopped paying their mortgages, most without making a single payment.

The cat’s out of the bag as to names of delinquent neighbors

The cat’s out of the bag as to names of delinquent neighbors

Q: We have been advised that two owners in our condo association have not paid their assessments. Their names and addresses were listed in the notice sent to all owners. We were advised the board has spent over $8,000 in legal fees for this year. Outstanding delinquent accounts that are not paid by the said delinquent owners, including legal fees, will be assessed to all owners by their percentage of ownership as set forth in the condominium documents. The total amount will be reflected in the 2010 monthly maintenance fees for all owners. Many owners are concerned and upset about this. I didn’t think the names of the delinquent people could be shown as I thought you had mentioned this in your column some time ago. Is it legal to post names and assess the other members?

A: While the condominium statute does not address the posting of delinquent owners’ names and addresses, it may be a violation of the Federal Credit Laws. My objection is that it can cause neighbor problems. What good does it to post the names and address of the nonpayers? They are your neighbors. You cannot stand in front of their homes and throw stones and you should not yell negative remarks.

A better way is to say “we have six units delinquent.” If another owner wants to know who the owners are, they can submit a letter to the board to inspect the records. This way, the board can control the information and avoid conflicts.

CDD defaults may be disaster for a swath of homeowners [Tampa Bay]

CDD defaults may be disaster for a swath of homeowners [Tampa Bay]

More than 50 of Tampa Bay’s community development districts are in or near default, a condition that could have serious ramifications for thousands of homeowners across Tampa Bay and accelerate the decline of already troubled Florida banks.

Developers use CDD bonds, or “dirt bonds,” to build roads, utilities and clubhouses. Of Tampa Bay’s 115 community development districts, 28 have already defaulted and another 25 could be teetering toward insolvency. That’s 46 percent of the total.

They include some of the biggest names in Tampa Bay residential real estate: New River and Longleaf in Pasco County; SouthBay and Live Oak Preserve in Hillsborough County; and Sterling Hill and Southern Hills Plantation in Hernando County.

Developers initially make CDD payments but gradually shed the expense as home buyers assume their proportional share. When the housing market collapsed, developers were left covering payments on unsold land.

Reason not to foreclose quickly

Reason not to foreclose quickly

Q: In today’s real estate market it may not be wise to foreclose. Lien, yes. Against my opinion, my board foreclosed and now is responsible for trying to sell a home in the community of 1,100 homes. The board, of course, is footing the bill for upkeep and paying all utilities plus maintenance fees, which, if not collected, it would be paying indirectly anyway. In this market, with over 20 homes so far in trouble, this HOA could be in the property management business quickly. The next step is to get into the rental business with all perils. Personally, I’m against foreclosures in a terribly down market. Why would you suggest it?

A: I will agree with you that sometimes it is not best to lien and foreclose on all properties. As such, each delinquent account must be evaluated. My suggestion of a fast lien and foreclosure action is based on trying to get the home paying as fast as possible. If the board waits more than six months, this recommendation more than likely will not work. If the board can take title fast, then they have several options to get the unit paying or generating income. They could contact the first mortgage company to see if it would take title to the property; they could see if the mortgage company would accept a short sale; or they could rent the property and wait for the mortgage to foreclose.