I am truly grateful for the information we are getting from folks who had experience with the Orlando project. This came in as a comment and I have made it an immediate post for maximum visibility. In future posts we will be summarizing many of the risks and rewards and “asks” that we might have as we move toward the decision to close on our units. As best we can, we must seek out a win-win. Only MCL and the Preferred Lenders know where things stand in terms of the “silent majority” and their ability and determination to finance their units. A reassuring message from MCL either 1:1 or in a public communication would go a long way to dampening the concerns of the fear expressed in many of these posts of a building that is only partially filled due to the current economic conditions.
Post From Vue Orlando Buyer
I am a buyer in both Orlando and Charlotte and would like take a minute to share some of knowledge I gained after going through the bankruptcy in Orlando. In Orlando, a major problem was lending. Apparently the FHA imposed new regulations as the economic dowturn worsened to try to stem the tide of foreclosures. They imposed minimum limits on the number of condo units in a project that had to be sold before the FHA would allow conventional financing. In Florida, I believe that number is 70%. The Vue was about 65% sold. Because of this, no one could sell their units including the developer! The only people that could buy were those with hard money loans or cash. Thus, the FHA inadvertently made the situation Harder for condo projects that were built, but teetering on the edge. I believe that was a major contributor to the project failing.
In North Carolina, the number is %50. We have heard for sometime that the Vue Charlotte is a certain percentage sold. This is the same number we have heard for several years. My question are: how many of the buyers will close? Will that number exceed a 50% level? And, if it does not, what happens to those who are stuck in a building in which no one else can get financing? To date, I have not heard of any type of seller financing.
I’ve included a linkto a webpage that shows the FHA approved condominium projects. I couldn’t find the Vue Charlotte on the site.
Scott Wenk, Orlando, Fla