Just when I thought my content was running low, a reader forwarded a mail to me about an auction soon to take place in Fort Myers, FL, for units at the Oasis Condominiums, a 2 tower condominium with a total of 440 units. While not the same market, I found the information instructive. and I thought I would pass it on to you.
Here is the link to the full mail: Fort Myers’ Auction
Also of interest is this news broadcast of the upcoming auction: Oasis Condominium Auction Advice.
125 condos will go to auction on November 20th. The letter explains there were 2 towers begun in 2005. The first completely sold out in April of 2005. The second was beginning to sell. Both were completed in 2008. By then, the market crashed, and “most buyers were unwilling or unable to close on their purchases.” Sound familiar? The property was eventually foreclosed on, and now the new owner is auctioning 125 of the units at deeply discounted prices.
There is apparently a 2 year process before foreclosures and auctions take place. So our Vue Charlotte saga could last quite awhile. There is no way this blog can last that long!
MCL’s own words, as quoted in the recent Charlotte Observer article, were these: “With the number of cancelled contracts, our estimate of contracts is already less than your reported 178 contracts. We also expect a very substantial number of the remaining contracts will not close,” he wrote Churchill.
I am not making up the fact that a substantial number of pre-sales buyers are “unwilling or unable” to close. MCL has admitted this in court documents. Therefore, I do not believe it is irresponsible or even anything but truth-telling to say that the VUE Charlotte is headed for foreclosure and auction just like the Vue Eola and the Oasis and who knows how many other condominiums meeting the same fate, and that it is just a matter of time.
I welcome MCL to convince me and others otherwise. I wish it were not true. But if there is no price negotiation, then the strategy it seems to me is clear: close as many units at contract price as possible, and then let the foreclosure process take its course.
So my ask of MCL is this: please tell me how you can avoid this doomsday scenario. I do not wish this scenario to happen. I just simply see no way under the present course that it won’t.
Please share your comments or write to email@example.com. And thanks once again to the reader that shared this article with us!