Today's F@cked Buyer (Coral Springs)

This is a classic F@cked Buyer. At the end of 2006, this couple bought the house using a 80/20 piggy-back loan -- of course, with no money down. The primary mortgage was an interest-only ARM. What's interesting about this house is the timeline of the inevitable foreclosue. First, the ARM was not due to reset until January 2009. So, the homeowners defualted long before the loan ever reset.

The homeowners received their notice of default (Lis Pendens) of February 22, 2008. The final judegment on the case was on April 22, 2008 (surprisingly fast). However, the house is just now being listed on the MLS -- nearly 11 months after the first notice of default and probably 14 months after the couple missed their first payment.

Now the house is being sold for 55% off its original late-2006 purchase price.

11061 NW 41ST CT, Coral Springs, FL 33065

• 4 Bed, 2 Bath SFH
• Bought in December 2008 for $387,000
• On the MLS for $174,800
• Days on the Market: 2
• Loss before the Realtor® commission: $212,200
• Loss after the Realtor® commission: $222,688
  

New request: I am looking to add "buyers" that have multiple distressed properties for sale. If you know of any, please provide a link or MLS listing to one of their properties. I want to highlight some of speculators that were caught holding multiple properties.

A Shrine to the Housing Bubble – The Tao Condominiums in Sunrise

For many, the high rises in downtown Miami, South Beach, or Brickell best represented the South Florida housing bubble. However, to me an even better example of South Florida’s irrational exuberance for residential real estate was the Tao Condominiums in West Sunrise.

These twin, 26-story high-rise condominiums were painfully out of place from the beginning. Flanked by a the massive Sawgrass Mall on one side and a sea of middle-class single family homes on the other, any casual observer could see that these condos were going to noose around a bunch of flippers necks. Who would want to live there? In exchange for deal with Bank Atlantic Center and holiday mall traffic, you could get the great view of the air conditioning units on top of mall.

If you haven’t seen these condos, check out their sales website:

The Tao Condiminums

Not surprisingly, today The Daily Business Review reported this about these condos:

“Corus Bank, one of the most active lenders to developers during the condo construction boom, is taking title to the twin, 26-story Tao Sawgrass condominium buildings in Sunrise in lieu of foreclosure.”

“Although there have been no closings on the complex’s 396 units, purchase deposits are in place on about 80 percent of the project, according to John Barkidjija, a Corus senior vice president in Chicago.”

“Corus, as W/K Sawgrass LLLP, expects to start closing unit sales next month. Construction trailers are still parked across from three fountains at the Tao entrance. Corus has hired Hyperion Development of Miami to complete unfinished portions of the complex. Hyperion affiliate POSH Residence Management will handle leases and broker re-sales for condo buyers.”

So, does anyone want to guess how many of the 80% who made purchase deposits will actually close their sale? I imagine very few. At the same time, these condos which once advertised one-bedrooms starting in the mid-400s, are now being converted into rentals – the South Florida housing bubble at it finest.

Today's F@cked Buyer (Fort Lauderdale)

Our final F@cked Buyer post of 2007 is short sale being offered for 52% off its 2006 purchase price. It is also well below a previous purchase in early 2004.

It's been an interesting year to say the least.

2464 NE 22ND TERRACE, Fort Lauderdale, FL 33305

• 3 bedroom, 2 bath SFH
• Bought in July 2006 for $1,300,000
• On the MLS for $630,000
• Days on the MLS: 59 Days
• Loss before the Realtor® commission: $670,000
• Loss after the Realtor® commission: $707,800

Today's F@cked Buyer (Davie)

You've got to wonder about some of these deals. This was purchased in 2006 for $998,900. Only 11 months later, it was sold for $1,250,000. In other words, it went UP over 25% at a time when virtually every other home in Broward County went down by 10% or more. Now, it's being offered as a short sale for 33% off the latest purchase.

4335 SW 141ST AV, Davie, FL 33330

• 3 bedroom, 4 bath SFH
• Bought in January 2007 for $1,250,000
• On the MLS for $800,000
• Days on the MLS: 47 Days
• Loss before the Realtor® commission: $450,000
• Loss after the Realtor® commission: $498,000

Today's F@cked Buyer (Pompano Beach)

Here's another one with a staggering purchase price. Someone actually spent $1.3M for a 3/2 in Pompano Beach. Now it's in foreclosure and being sold for 44% off of that price -- and it still seems well overpriced. I have a feeling this one will be sitting on the market for another 103 days or more.

2585 SE 9TH ST, Pompano Beach, FL 33062

• 3 bedroom, 2 bath SFH
• Bought in May 2006 for $1,300,000
• On the MLS for $724,900
• Days on the MLS: 103 Days
• Loss before the Realtor® commission: $575,100
• Loss after the Realtor® commission: $618,594

Today's F@cked Buyer (Sunrise)

This foreclosure is down 53% from it's purchase price. It shows what is happening to the 55+ communities in Broward. They're getting absolutely crushed.

9700 SUNRISE LAKES BL # 301, Sunrise, FL 33322

• 1 bedroom, 1.5 bath Condo
• Bought in April 2005 for $51,500
• On the MLS for $24,000
• Days on the MLS: 14 Days
• Loss before the Realtor® commission: $27,500
• Loss after the Realtor® commission: $28,940

Today's F@cked Buyer (Davie)

Here are some more interesting transactions at Imagination Farms. In May 2006, a couple purchased this home for $980,000. Despite a market that was dropping rapidly, they sold the house just seven months later to the current "owner" for $1,225,000. They made a $245,000 profit while nearly everyone else in Broward County were seeing losses.

Of course, the current "owner" pruchased the house with 100% financing. Only 8 months after the purchase, the owner received a notice of default. Now, it's being offered as a short sale at a 35% discount off its last purchase price.

13021 SW 40TH ST, Davie, FL 33330

• 5 Bed, 4 Bath SFH
• Bought in May 2007 for $1,225,000
• On the MLS for $800,000
• Days on the Market: 201
• Loss before the Realtor® commission: $425,000
• Loss after the Realtor® commission: $473,000

Today's F@cked Buyer (Davie)

It's simply impossible to ignore the suspicious nature of this property. It was purchased just seven months ago for $1.5M using 100% financing for more than double its 2004 purchase price. Then, just seven months later, it's being offered as a short sale for 33% off the purchase price? How does someone get themselves in trouble that quickly?

This property was briefly listed for $799,000. A few days ago, the listing agent raised the price to its current price. Why?

It seems fitting that this home is in the Imagination Farms sub-development.

3913 SW 135TH AV, Davie, FL 33330

• 5 Bed, 4 Bath SFH
• Bought in May 2007 for $1,500,000
• On the MLS for $999,000
• Days on the Market: 82
• Loss before the Realtor® commission: $501,000
• Loss after the Realtor® commission: $560,940

Today's F@cked Buyer (Ft. Lauderdale)

Another unbelievable purchase price equals another huge haircut on a short sale. Just 10 months after its purchase, this unit is being offered for 45% off.

1000 NE 17TH ST, Fort Lauderdale, FL 33305

• 3 Bed, 2 Bath SFH
• Bought in February 2007 for $435,000
• On the MLS for $240,000
• Days on the Market: 28
• Loss before the Realtor® commission: $195,000
• Loss after the Realtor® commission: $209,400

Today's F@cked Buyer (Sunrise)

The listing agent advertises this as "great for investors" claiming that the unit, which is facing foreclosure, is rented for $1100. First, who in the right minds would actually rent this place for $1100? Second, at $130,000 with $284 in monthly HOA, it PITI would cost at least $1350 per month (assuming a 7% loan) -- not exactly cash-flow positive. Lastly, I wonder if anyone has bothered to tell the renter that his landlord was facing foreclosure and will probably be evicted shortly?

3780 NW 91ST LN # 3780, Sunrise, FL 33351

• 2 Bed, 2 Bath Condo
• Bought in November 2006 for $203,000
• On the MLS for $130,000
• Days on the Market: 108
• Loss before the Realtor® commission: $73,000
• Loss after the Realtor® commission: $80,800

Today's F@cked Buyer (Ft. Lauderdale)

This foreclosure is being offer for 35% off the original purchase price. Of course, since it is in foreclosure, it comes complete with a deep green pool.

3341 JACKSON BL, Fort Lauderdale, FL 33312

• 3 Bed, 2 Bath SFH
• Bought in March 2006 for $300,000
• On the MLS for $194,900
• Days on the Market: 6
• Loss before the Realtor® commission: $105,100
• Loss after the Realtor® commission: $116,794

Today's F@cked Buyer (Coral Springs)

When I post these F@cked Buyers, I am often amazed at some of the prices that some fools paid for homes. Just 10 months ago, long after the bubble had started to deflate, someone paid over $300,000 for 3-bedroom condo that had just been converted from apartments. One could have easily purchased a 4-bedroom single-family home with a pool and no HOA only block from this condo-conversion. What in the world were they thinking? Now, this unit is being offered as a short sale for 49% off the previous purchase price -- nearly half the price in 10 months. Ouch.

8871 WILES RD # 108-8, Coral Springs, FL 33067

• 3 Bed, 2 Bath Condo
• Bought in January 2007 for $311,000
• On the MLS for $160,000
• Days on the Market: 36
• Loss before the Realtor® commission: $151,000
• Loss after the Realtor® commission: $160,600

Today's F@cked Buyer (Miramar)

This unit is listed 41% below its previous purchase price just 19 months ago. It is also well below it 2004 purchase price before that. I'm not surprised. Of all the Broward neighborhoods, I think Miramar will face the largest drops due to all the over-building.

8353 SW 25TH CT # 102-3, Miramar, FL 33025

• 2 Bed, 2.5 Bath Condo
• Bought in May 2006 for $286,000
• On the MLS for $169,900
• Days on the Market: 39
• Loss before the Realtor® commission: $116,100
• Loss after the Realtor® commission: $126,294

Today's F@cked Buyer (Plantation)

I think homes will eventually sell for less than $110 per square foot in better West Broward neighborhoods. At $137 per square foot, this home is getting closer. It's also being sold $41,000 below its 2004 purchase price and 37% below its 2005 purchase price.

7360 NW 14TH ST, Plantation, FL 33313

• 4 bedroom, 2 bath SFH
• Bought in May 2005 for $390,000
• On the MLS for $244,900
• Days on the MLS: 32 Days
• Loss before the Realtor® commission: $145,100
• Loss after the Realtor® commission: $159,794

Today's F@cked Buyer (Parkland)

Thank you to a reader who sent me this Parkland foreclosure. During its 83 days on the market, the Bank of New York has dropped this home's price five times from its original listing price of $921,900. Now it's priced 43% below its purchase price only 20 months ago.

6502 NW 66TH WY, Parkland, FL 33067

• 4 bedroom, 4 bath SFH
• Bought in February 2006 for $1,334,000
• On the MLS for $758,900
• Days on the MLS: 83 Days
• Loss before the Realtor® commission: $575,100
• Loss after the Realtor® commission: $620,634

Today's F@cked Buyer (Weston)

Ten months after its purchase, this pre-foreclosure is listed for a price that is 15% lower.

1769 HARBOR POINTE CR, Weston, FL 33327

• 6 Bed, 4 Bath SFH
• Bought in January 2007 for $1,050,000
• On the MLS for $895,000
• Days on the Market: 31
• Loss before the Realtor® commission: $155,000
• Loss after the Realtor® commission: $208,700

Today's F@cked Buyer (Ft. Lauderdale)

Thank you to "2l" for providing today's listing, our first multi-family listing. This is currently selling for 6% below its 2004 price (makes the FIU professor in Today's News look silly). What's really interesting is the massive difference between the listing price and the County's assessed value ($517,190).

426 SW 4Th Av, Fort Lauderdale, FL 33315

• Multi-family: 3 units, each with 1 Bed and 1 Bath
• Bought in May 2004 for $265,000
• On the MLS for $247,900
• Loss before the Realtor® commission: $17,100
• Loss after the Realtor® commission: $31,974

Today's F@cked Buyer (Lighthouse Point & Pompano Beach)

Thanks to "140 dollars per sq foot" for providing today's F@cked Buyer who is currently stuck with two investment homes. This buyer seems to be a typical investor, who did quite well during the boom. I saw two homes that this buyer sold during the boom that had sizeable profits. However, he didn't know when to get out and could end up losing much of those profits he made during the boom.

Home #1: 2171 NE 44Th St, Lighthouse Point, FL 33064

• 3 Bed, 2 Bath SFH
• Bought in March 2007 for $900,000
• On the MLS for $850,000
• Days on the MLS: 70 Days
• Loss before the Realtor® commission: $50,000
• Loss after the Realtor® commission: $101,000

Home #2: 150 SE 12TH ST, Pompano Beach, FL 33060

• 2 Bed, 1.5 Bath SFH
• Bought in March 2007 for $750,000
• On the MLS for $680,000
• Days on the MLS: 61 Days
• Loss before the Realtor® commission: $70,000
• Loss after the Realtor® commission: $110,800

Today's F@cked Buyer (Various in Broward)

Thank you to "140 dollars per sq foot " for providing us with this F@cked Buyer. He currently "owns" four homes in Broward County that have all been listed on the MLS for an extended period of time. Note that, although House #3 is being sold at a significant "profit," it is listed as a short sale.


House # 1: 5264 E 3Rd Av, Oakland Park, FL 33334

• 2 Bed, 1 Bath SFH
• Bought in December 2004 for $196,500
• On the MLS for $190,000
• Days on the MLS: 473 Days
• Loss before the Realtor® commission: $6,500
• Loss after the Realtor® commission: $17,900

House #2: 2502 N 54Th St, Tamarac, FL 33309

• 2 Bed, 1 Bath SFH
• Bought in December 2004 for $168,000
• On the MLS for $179,000
• Days on the MLS: 473 Days
• Profit before the Realtor® commission: $11,000
• Profit after the Realtor® commission: $260

House #3: 227 Lakeview Dr Unit: 202, Weston, FL 33326

• 2 Bed, 2 Bath Condo
• Bought in April 1995 for $60,000
• On the MLS for $199,900
• Days on the MLS: 97 Days
• Profit before the Realtor® commission: $139,900
• Profit after the Realtor® commission: $127,906

House #4: 2121 E 32Nd St, Lighthouse Point, FL 33064

• 3 Bed, 2 Bath SFH
• Bought in December 2005 for $900,000
• On the MLS for $699,000
• Days on the MLS: 486 Days
• Loss before the Realtor® commission: $201,000
• Loss after the Realtor® commission: $242,940
  

New request: I am looking to add "buyers" like this that have multiple distressed properties for sale. If you know of any, please provide a link or MLS listing to one of their properties. I want to highlight some of speculators that were caught holding multiple properties.

Today's F@cked Buyer (Ft. Lauderdale)

While the prices of condos within walking distance to the beach seem to have stickier prices, we're still starting to see some significant price drops. This one is priced 17% below its purchase price 17 months ago.

720 ORTON AV # 406, Fort Lauderdale, FL 33304

• 2 Bed, 1 Bath Condo
• Bought in May 2006 for $275,000
• On the MLS for $229,000
• Days on the Market: 19
• Loss before the Realtor® commission: $46,000
• Loss after the Realtor® commission: $59,740
  

New request: I am looking to add "buyers" that have multiple distressed properties for sale. If you know of any, please provide a link or MLS listing to one of their properties. I want to highlight some of speculators that were caught holding multiple properties.