A Very Bad Vue for Some

Things are not looking good for many buyers of the Vue. Don’t be fooled by 60% sold. On Craigslist, we are beginning to see buyers running for the exits:  http://charlotte.craigslist.org/search/?areaID=41&subAreaID&query=The+vue&catAbb=hhh. The economy and the availability of financing has changed the game for a good number of the 60%. People on Craigslist should not be fooled by the “deal” they are being offered. Right now there is not enough information to know what the current value of these condos is.  The published prices mean nothing until someone proves that they are actually being sold at those prices. My guess is almost no units have been sold since the bad news about the Vue’s lenders was published in the Charlotte Observer.  We are in for some drama this summer and fall as the bill becomes due for the unfortunate 60% (like me) that bought into the Vue at the height of the real estate bubble. Stay tuned.

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4 Responses to A Very Bad Vue for Some

  1. Optimist says:

    I guess it’s not surprising to see those adds on Craigslist. I’m sure a lot of buyers are now in a situation where they just cannot go through with the purchase (whether due to the economy or otherwise). As for others, the appraisals are going to be the pivotal factors in these deals, in my opinion. We’ll just have to see if the builder is willing to take that into consideration. Don’t they have to have a certain percentage of the condos sold or under contract in order to complete the project? If appraisals come in too low it will affect the financing and I’m certain some buyers will have to bow out at closing. If enough of this happens, then the builder will dip below their required numbers putting the project in jeopardy. That might be some incentive for them to work with the buyers on pricing.
    What was the bad news about the lenders in the Charlotte Observer?

    • vuebuyer says:

      I don’t have all the answers, but do want to clarify the mention of the Vue Lenders. This was referring to the crisis earlier in the year when construction was halted while the Vue renegotiated its financing. This was a scary time and virtually froze potential sales of the Vue until it was completed. Overall though I think it was a positive because the Vue was given a few extra years (according to them) to repay their loans on the building so they wouldn’t have to sell units at fire sale prices.

  2. The Realist says:

    The Vue has taken a positive wait and see approach with this project which makes me wonder about the financing of this project. It’s far better to be proactive than reactive in this market and in the end MCL may wish they were more proactive.

    The facts are:
    1) Most units sold after 1/1/2007 may not appraise.
    2) Everyone’s (unless you were paying cash) financial situation has changed since 2007
    3) Finance underwriting has tightened dramatically and what would closed easily in 2007 would be denied today.

    What does this all mean? My gut tells me their 60% sold is more like 25% sold and the possibility of problems with MCL’s financing may arise. I was told they had deep pockets… well, we’re all about to see how deep they are.

  3. Thank you for pointing this out. It is amazing to see the drama unfolding just before the closings.

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