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It sounds like a foreclosure to me but they are not calling it that. (of course this is Charlotte so it is all about the image) The 28 story condo tower in downtown Charlotte called The Catalyst has been turned over to the lender, Lehman Brother Holdings according to the Charlotte Observer. They are no longer trying to sell units and what ones have been sold are going to have their contracts canceled apparently due to the fact they can't sell enough of them for people to get loans. They have started to rent out some units as apartments.
The good news here is the people get their deposits back unlike the financial disaster that has hit people who purchased in some of the other buildings. The article goes on to say there are an amazing 1850 new condos either for sale or under construction in downtown. I wonder if this includes the ones in the 3 stopped buildings?
I would say that if you think you are going to be in this market, hold off until you see the vulture investors start to show up as they have in other overheated markets. Otherwise you stand to take quite a bath. It is quite a change from the frenzy that existed about 3 years ago where people were actually paying extortion money to get a place in a lottery to determine when they could purchase a unit. This is never a good situation.
This is a photo of the building if you are unsure which one this involves:
Aren't there buyers who are already living in that building?
I could be wrong, but I would think not given that financing wasn't possible. There is apparently some sort of condition about number of condo sales before banks would give mortgages on units, and the Catalyst never got close to this level.
There are definitely people living in that building now, I don't know if they are buyers or renters -- they converted half of the project to rental earlier --- but it's an active building.
There are definitely people living in that building now, I don't know if they are buyers or renters -- they converted half of the project to rental earlier --- but it's an active building.
My understanding is the people there now are all renters.
Can we see a thread about all of the Ballantyne foreclosures Mr. OP? Aren't SINGLE FAMILY suburban homes the "cause" of this mess? Aren't stalled out condo towers the "effect"?
Let's keep the focus on the "cause" for once lumbollo. You seem to like pointing your finger at the "effect". This seems kinda suspicious to me.
I could be wrong, but I would think not given that financing wasn't possible. There is apparently some sort of condition about number of condo sales before banks would give mortgages on units, and the Catalyst never got close to this level.
However if there are, it really sucks for them.
You are correct. It depends on the investor buying the loan from the bank. Typically Fannie or Freddie would have the lender conducted a project review and one of the conditions does stip the number of units sold; however the builder would typically have alliances with certain lenders from the begging but given the bloodbath that took place many relationships ended and thus the buyers that already have bought get stuck in the middle.
I have not been in the business for a while though and things may have changed. I always hated the idea of so many condo units so fast in Uptown, especially so many being bought by investors, never a good sign especially for banks.
It was just going to keep getting worse and the most viable solution would be to convert those units into apartments at least in order to share the burden of climbing homeowners due since less owners will have to share the huge burden to maintain the building.
I feel bad for some people but there were other who truly did not see the signs and just acted on gut instinct and the good looks of many of those places. Condo living has great advantages but, as in many cases during the boom, the system got abused by builders, realtors, lenders and they buyers themselves.
Can we see a thread about all of the Ballantyne foreclosures Mr. OP? Aren't SINGLE FAMILY suburban homes the "cause" of this mess? Aren't stalled out condo towers the "effect"?
Let's keep the focus on the "cause" for once lumbollo. You seem to like pointing your finger at the "effect". This seems kinda suspicious to me.
You are right and wrong.
The spotlight on Uptown was bound to happen because you had greedy parties all around (just like you mentioned w/SFH).
Its supply and demand. Prices will continue to come down until there is a balance between the supply of condos and qualified buyers at the right price...
Right now there's such a glut of living space uptown and so few qualified buyers that its going to be a long ugly haul (just like SFH in the burbs).......no different.
The spotlight on Uptown was bound to happen because you had greedy parties all around (just like you mentioned w/SFH).
Its supply and demand. Prices will continue to come down until there is a balance between the supply of condos and qualified buyers at the right price...
Right now there's such a glut of living space uptown and so few qualified buyers that its going to be a long ugly haul (just like SFH in the burbs).......no different.
My point was the fact that uptown real estate is such a small % of Charlotte's total market that I can not understand why it (uptown) gets so much attention. I stand by my previous statements.
Most condo buyers were trying to sell (or rent out) SINGLE FAMILY HOMES as a means to live the "high" life. The "glut" uptown was caused by the "crash" in the burbs. Plain and simple. Cause (burbs) and Effect (empty condos).
My point was the fact that uptown real estate is such a small % of Charlotte's total market that I can not understand why it (uptown) gets so much attention. I stand by my previous statements.).
No one complained when condos were getting all the attention 2 years ago when these things were proposed. The news was good, potential buyers wanted to ride the gravy train....everything was good, right? Now, people bought at the peak, and are stuck being underwater just like SFH owners....now they are complaining about the negative press.....sorry, you can't have it both ways. You take the good w/the bad.
Quote:
Originally Posted by urbancharlotte
Most condo buyers were trying to sell (or rent out) SINGLE FAMILY HOMES as a means to live the "high" life. The "glut" uptown was caused by the "crash" in the burbs. Plain and simple. Cause (burbs) and Effect (empty condos).
I don't know if I totally agree w/that statement.
If you bought uptown because you think it was a good financial "investment", it doesn't matter whether its a condo or SFH, history has shown that owning real estate is a lousy financial investment on average.....some have gotten lucky by buying low and going through a cycle of overheated gains......
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