Ocean Isle Palms, Ocean Isle Beach (King, Shallotte: foreclosures, construction loan, new home)
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I'd also like to hear from OIP lot owners. Latest I've heard is that one new home is slated to begin construction, and that home building can begin on lots that can go with a septic system by putting field lines in adjoining lots. Sewer isn't in, but OIP will work with you on septic lines with later connection to sewer when it's avlble. Project is still neatly kept up, with agents on duty and landscaping done regularly. I'd like to know how many lot owners are in financial distress due to their purchase, and what they are doing about it.
I heard the same thing, they are ready to begin building the first home in the development. The septic is a concern. I think the County came to an agreement with the developer over hooking up the lines. I don't know what the agreement is though. If anyone does, please share. I did see that electric, curbs, and sewer lines went back through phase I and the roads are in but not paved.
I saw a couple foreclosures in the paper on lots, so people are hurting. I guess it's the same as everywhere else. OIP doesn't seem to have as many foreclosures as some of the other developments in the area. If you used the local BB&T to finance your lot they have a couple options to consider to extend your loan.
Mark Saunders (the developer) is behind on property taxes in that subdivision. I'm not sure what actions the county may take. Vacant lots in Ocean Isle Palms can be bought for $20,000 to $50,000 but I'd personally stay away. This subdivision like so many others that were marketed to "out of towners" for ridiculously high prices ($100,000 to $300,000) will likely never fully recover. You can go right down the street and buy a home on the golf course for less than $250,000.
A few other Brunswick County subdivisions to RUN from:
Avalon
Palmetto Creek
Mill Creek Cove
Seawatch
San Rio
River Sea
My prediction is that Coastal Companies will be bankrupt by the end of the year. They aren't paying the property taxes on their lot inventory because they don't have the revenue to do it.
It looks like the developer has a beef with the County over a water line. Was that a good reason to screw property owners in a number of communities...no, it was an excuse. An excuse to get the developer through the economic down times. So there is supposed to be a payment plan in place between the developer and the County regarding the owed tax money. We'll see if things move forward from there.
Will OIP really go under? It's a prime location. Even if Saunders bails out someone else will likely come along and make things happen.
There are people all over the country saying if I coulda, woulda, shoulda...it's too late for that now. Time to make things right.
JerseyJ, thanks for the link to the press release.
Just another little tid bit. The bank said the project is insured, so if the developer goes under the development won't. It might not look the same, but something would still be happening.
I'm sure the County made the developer secure a bond for the infrastructure before Ocean Isle Palms was allowed to proceed. That's standard procedure I think. So if the developer bails out, the County will simply call up the bond and take over the infrastructure to ensure that it is completed. That is what is going on in the San Rio subdivision outside of Shallotte last I heard. I don't think getting the infrastucture complete will be the problem in Ocean Isle Palms. The big problem I see is the inability to get a construction loan for the folks that bought over priced lots back in 2006. Most of those lots transferred north of $200,000 and they are worth a small fraction of that now. No bank is going to extend a construction loan for more than the construction cost + the current value of the lot and that scenario is going to prevent 95% of the lot owners from building homes. That will probably force more people into foreclosure which drops property values even more. The good news is that when the housing market turns, builders will start buying up the cheap foreclosure lots and building houses on them. That however won't help those that bought lots for $200,000 but it will get some homes constructed in some of these distressed subdivisions.
This site-http://www.starnewsonline.com/article/20090523/ARTICLES/905229942/1004?Title=Zombie-zones-Stalled-housing-sites-litter-local-landscape mentions San Rio, Avalon, Kingfish Bay, River Club, Sea Watch and Ocean Isle Palms. The related links and Key Documents explain some of the situations.
It seems that San Rio is having the biggest problems and several of the property owners (200K-700K) are suing the developer (Wakefield).
NCGT- I am curious to know why you think Coastal Companies will be bankrupt by the end of the year? I thought Mark Saunders had a huge vested interest in Brunswick Co.
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OIP Lot Owner
