2 Bedroom Foreclosure at Latitude on the River – $266,000
January 16, 2009 by Lucas Lechuga
Within the past three months, I've seen a handful of short-sale condos at Latitude on the River become available on the MLS. Earlier today, however, I came across the first bank-owned foreclosure condo in the building to appear.
The foreclosure condo is a 2 bedroom/2.5 bath with 1,212 square feet of interior and a 196 square foot balcony. The condo comes "decorator-ready" with concrete floors, as delivered by the developer, and is located on the southwest corner of the 20th floor. The list price is $266,000, or $219 per square foot. The most recent Brickell Condo Index published in November 2008 revealed that the average list price of condos available at Latitude on the River was $366 per square foot. There had not been any closed sales in the building at the time within the prior six months and there haven't been any since. Lack of closed sales clearly means that prices of available condos at Latitude on the River haven't yet fallen to a level that will attract buyers. It'll be interesting to see if the 2 bedroom foreclosure condo at Latitude on the River will spark the interest of buyers.
View the pictures and listing information for the 2 bedroom condo foreclosure at Latitude on the River.
This unit is not cash flow positive, so I would not be a buyer here.
However, this is a lot better than other deals you have posted at what I find to be ridiculous 300 and 400 sq foot prices.
As far as I am concerned, Miami Condo’s have officially fallen 1/2 way to the bottom as of 1-15-2009.
Whatever price you see on a unit right now, TAKE OFF ANOTHER 50%!!!!
That is what the price will be in 2012 when all is said and done!.
This unit will sell for $133,000 after it gets forclosed on a second time down the road.
I think that Christopher may be a bit hopeful with the “TAKE ANOTHER 50% OFF” but it looks like the $150 calls that a lot of people have been making will come to fruition. It’s now obvious that bulk lots of units are trading at $200/sq ft while individual units can trade anywhere between $200-$250/ sq ft. Building site, water views or front, amenities, etc all make a significant difference. It’s not unreasonable to see bulk trading down 25% from here at $150/ sq ft. A lot of contributers to this site have made that call and I’m giving some… Read more »
Talk about lack of windows for the living room. Looks like you have a building next door too. Banks seem to put the crappy units on the market first. If this one goes for 266k, the next one that the bank sells will be either a better unit or the same unit (line) for less. The bank doesn’t want to have to compete with the 266k buyer when trying to sell other units as the 266k buyer may try to undercut the bank and flip it for profit. The banks will have NONE of that right now. They’ll be doing… Read more »
This unit and other 2/2 units were selling in the lower 400,000’s in 2007. I saw one 2/2 in the tax records that sold for 499,000.
It has been reported that 70% of buyers in Miami were investors.
If this unit sells for around 250,000 all other units will be so under water I expect half the buildings investors to stop paying.
Majority of people in Miami are in denial or don’t have a clue that their properties have fallen 30 to 40 percent already. Once they do they too will stop making payments and walk from these buildings.
Do any of you go the auctions where they sell bank owned properties. If you do please share the experiences and how competitive it is?
Also how much properties are being sold for vs the starting bid.
Thanks
its nice to see some prices dropping to a number which will begin to attract real interest. but we are not there yet. At $266k, this decorator ready unit is actually selling for $300k. Still too much money for a condo in Miami under current conditions. Banks and sellers must realize if somebody is paying above $250k for a unit, they want to be able to move into the unit on day 1. not wait 6 months for construction costs and time over runs to tire them out. the whole idea of condo living is no maintenance and fuss. i… Read more »
lara,
Yes,
Gone to REDC waste of time.
Courthouse foreclosure were getting better last time I went in Nov.
If any of this interest you, let me know and I’ll post more.
If I assume you meant REOs on the REDC auction block, the answer is too many amateurs that bid up quickly. They were all in the MLS for months anyways.
Not a good deal, look at the rental market in the building. Besides your going to have to hold for 3-5 years, (closer to 5) and pay carrying costs, insurance, etc, and take a loss for those years.
Bluehorseshoe says it’s way better to rent now. Your hearing this from a condo investor/owner that is taking a bath on his rental units both in high end and mid range. IE. Santa Maria on Brickell Condo type quality to Tequesa One type quality.
Blue Horse!!!!???
I’d never thought that of YOU!!!
[hangs head in shame]
Following the Pattern:
You are so wrong. Banks don’t give the sale of their foreclosed properties that much thought. That’s how they got into this mess in the first place. They foreclose on one, they put it up for sale at a price they think that they can get. Simple as that. I am a builder/developer and I use some of the larger banks that have many foreclosed properties. They never really seem to care how they get rid of them and they surely don’t go through the hoops you stated.
To Lucas and other readers, here is an article about condo financing from PCBDaily.com. I posted it just before the cutoff from your previous article so I’m re-posting. I used to live in Brickell and am planning to move back. How will anyone obtain a mortgage w/ these restrictions? What percent of your current clients are obtaining condo mortgages? Thanks. New FNMA Condo Guidelines Chilling to Panama City Beach Written by Jason Koertge Last Updated: January 14, 2009 FNMA released new condo eligibility guidelines for mortgages acceptable to be purchased by FNMA in Announcement 08-34. These new guidelines are directed… Read more »
Brett, very useful post. Thanks. Confirms what I posted previously: “There are 60, fully arms-length, publicly-recorded comps in MarinaBlue that say you are seriously underwater. No sane lender will ignore those comps so you will not be able to sell at your full price (or any price above $200 psf) to any buyer who requires substantial mortgage financing. Additionally, MarinaBlue will have so many renters and non-occupant owners that most lenders will not lend to any potential buyer at virtually any price.” Essentially, $200 per square foot is the new ceiling for non-cash buyers at MarinaBlue. This means that the… Read more »
I love Lucas’s blog. However, what is really needed out there is a for-rent-by-landlord site. Really. The landlords need it.
Lucas – can you update your condo deals page? It seems like the last month has had the floor fall out on a lot of the complexes you’ve listed, and those listed deals really…aren’t!
Great blog…thanks for the work!
Thanks for the site, it is just what I needed right now. I have a few question for the Miami residents on the board. Some background info first. I grew up in Miami in the late 60’s thru the early 80’s. My wife and I met in Tampa and she is Cuban. We relocated up to the northeast many moons ago. We now hate winter, the rest is beautiful though. I know about the housing and condo associated problems down there, I have been following the disaster since 2006 via blogs (IMHO, these are the TRUE journalists of today, seriously).… Read more »
I went to the courthouse auction last week and could not believe the lender bid what was owed on every sale except one while I was there. Can’t imagine why they would want these properties back. Saw where banks can lend 31 times their deposits so if just 3% default that bank is in deep trouble. Also saw that like 900,000 houses are delinquent but banks rather have them on the books for full amount due than current or sold value. Crazy times.
this is arguably the worst new project on the river. the units facing north mainly look into the electrical transformer station. many of the units facing south are butting up right against the office building. your views simply suck compared to the other product you can buy on the river. don’t expect to see many deals at the auction. unless the foreclosed loan comes in under valuation of the property, expect the lenders to credit bid all the way up to their judgment amount. the lackeys they have showing up to the auctions are instructed to do as much.
Richard – I think the banks have to bid what’s owed to get the defaulted borrower off the title, and it then becomes REO. In an auction where the bank is selling to get rid of property, they won’t be bidding. But I don’t know Fla. law, so maybe someone knowledgeable can fill us in.
Muir – if Lara doesn’t take you up on more info, I’d like to. Thanks. Very interesting info.
EVERGLADES ON THE BAY
Anyone in here who has a purchase contract for Everglades On The Bay Cabi Developers and would be interested in relating their experience with their purchase and the developer with an investigative reporter for a major local newspaper contact me with an address and phone number to – myloislane.com
Correction
contact me at – [email protected]
isellpower,
Are you on medication?
I’ve fought hard for REOs in recent months (and failed) and I am calling BS on your post #10.
Richard /Jan 18, 2009 at 11:19 am Vote:
I went to the courthouse auction last week and could not believe the lender bid what was owed on every sale except one while I was there. Can’t imagine why they would want these properties back. Saw where banks can lend 31 times their deposits so if just 3% default that bank is in deep trouble. Also saw that like 900,000 houses are delinquent but banks rather have them on the books for full amount due than current or sold value. Crazy times.
–
That’s what I told Lara.
🙂
Tom /Jan 18, 2009 at 1:23 pm Richard – I think the banks have to bid what’s owed to get the defaulted borrower off the title, and it then becomes REO. In an auction where the bank is selling to get rid of property, they won’t be bidding. But I don’t know Fla. law, so maybe someone knowledgeable can fill us in. Muir – if Lara doesn’t take you up on more info, I’d like to. Thanks. Very interesting info. – Tom & other, 1. No, banks bid $100. They do this for the stamps they have to pay (60… Read more »
Only a fool would pay $219.00 per square foot.
The Smart Money
Latitude won’t see a sale until it goes under $200/SF
Lots of money ready to pounce at $150/SF for those units.