Charlotte View

It's Charlotte's Uptown eyesore but will it ever be finished?  This is the next step to completion of the high rise condo tower which has been marketed since 2003.  The lender that filed for foreclosure on the 70% completed The Park condo project in uptown Charlotte was the sole and winning bidder for the building in an auction August 7, offering $17.9 million.  BB Syndication Services is now talking to prospective buyers for the unfinished tower. 

The Park’s construction has been beleaguered with delays. Work on the condos started on top of a four-story parking deck at Third and Caldwell streets more than two years after the project was announced. Pete Verna’s development company, dubbed 222 South Caldwell Street Ltd. Partnership, owes BB Syndication more than $27 million on The Park’s $30.7 million construction loan.  Work ground to halt and contractors and vendors went unpaid. 

Fannie Mae has eliminated their 100% loan programs.  There is good news...yes – there are various programs still available.  VA is 100%.  FHA accepts gifts from family members and individuals with a significant relationship as the source of the down payment.    FHA also works with various non-profit agencies which offer down payment assistance such as Nehemiah and AmeriDream. These programs do not require the buyer to have any of their own funds in the transactions at the current time.  Some lenders, such as banks, will have what is know as portfolio loans wherein you can obtain 100% financing with a combination first and second mortgage, although I have found that these loans are becoming harder to come by.  These loans have special guidelines and will vary from bank to bank. 

FHA announced effective July 14, 2008, they will implement their Risk Based Mortgage Insurance Premiums. Their new guidelines will have a slight increase in a borrower’s up front and monthly premium if the borrower is looking for maximum financing (97%) and their credit scores are below 640.   For more info, please let me know if you need contact info from any of my preferred lenders who will be happy to bring you up to speed on what's available today.

In previous years and in a thriving Charlotte marketplace, we rarely ever heard the term "short sale" which unfortunately now is all too common.  A short sale is a home whose sellers are unable to continue making the payments on the home as a result of job loss, illness or injury, an ARM mortgage rate that doubled the amount of monthy payment, etc.  Rather than wait for the lender to foreclose on the home, the seller contacts the lender in an effort to sell the home and have the lender accept less than the balance due.

My lenders tell me that a homeowner's credit although affected, would allow them to buy again within three to five years, although at a higher interest rate.  If a homeowner was to suffer foreclosure, the amount of time would be in excess of 7 years in most cases.  Affected homeowners must submit a preliminary net sheet, current assets, a hardship letter, and current bank records, a comparative market anaylsis and an offer to purchase from a perspective buyer.  Most of this work could be and should be done prior to the offer to purchase or risk losing the buyer to time and red tape delays.

Prices for short sales are usually advantageous to buyers, but often not a much or bargains as foreclosures which are often sold "as is" and in need of more repair.  For more about both topics, see http://homebuying.about.com/od/4closureshortsales/a/shortsalebasics.htm

We made it!  Forbes magazine has announced their recent survey of the 10 best US cities to buy a home in....and Charlotte made the top ten, coming in at lucky number seven.  With the hits our two largest employers BOA and Wachovia have taken this summer, we can use the good news.

Take a look and see for yourself at http://www.realtor.org/RMODaily.nsf/pages/News2008071502?OpenDocument