Foreclosure Defense Florida

Foreclosure and Bankruptcy Auctions- Let the Buyer Beware

Just last week, I attended an auction for two penthouse condos at a condominium complex in downtown St. Petersburg. If you’ve never attended a real auction of any sort, you should seek one out just to experience the drama and interesting dynamics that occur at a real auction. The units in question had previously sold for more than $600,000 in a brand new striking building located in downtown St. Petersburg. The units up for auction were beautiful and while those conducting the auction continued to refer to how much the units had previously sold for, I could care less that some poor sap dramatically overpaid and this overpayment didn’t factor in one bit to what I determined an appropriate high bid price would be.
The reality is the building has been completed for more than one year and the developer had not been able to sell 30% of the units in total”¦that 70% remaining inventory poses real problems for the 30% current owners and the ” lucky” high bidders at the auction. When considering buying into any condominium complex in this economic climate it is critical for any buyer to determine just how many units have sold and just how many units are paying their maintenance fees lest the new purchaser be saddled with greater condo fees and assessments based on the failure of enough other sales to cover all association fees.
In this particular case, the successful bidders were probably unaware of the rumor that the developer had recently transferred the remaining units over to the lender that held the financing on the building. If the rumor is correct, the developer essentially cried uncle, gave up and walked away from the project, leaving it up to the bank to do whatever they can to limit their losses, cut their liability, sell units to get out. I would expect this would mean fire sale prices to unload the remaining units”¦.prices far below the prices paid at this auction.
In this market the buyer really has to beware”¦before you bid or contract to buy, hire an experienced real estate attorney to guide you. Visit my website at

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