A Tale of Recovery from Bank Owned Homes Foreclosures

by Donald Hanz on Foreclosures

Units at the Concordia condominium building located in Cape Coral, Florida is selling like hot cakes as its new owner sells them at less than their original price. The condominium was once under bank owned homes foreclosures. Its unfinished structure then was a glaring evidence of the crisis in the housing market.

Today, it is a bastion of growth and serves as a proof that there is life after foreclosure. The plan for the construction of Concordia condominium started in 2004, during the peak of the housing market in Lee County. By 2005, while the condominium is under construction, its unit price range from $256,000 to around $475,000.

After two years, 50 percent of the planned 340 units and 34 buildings had been built. However, around September 2007, Concordia succumbed to the pressure of the collapsing housing market and the rising bank owned homes foreclosures. Sales were affected by falling home prices which led the Florida Community Bank to file a foreclosure action amounting to $23.4 million against condominium developer, Concordia Cape Coral LLC.

Florida Community took over the project with Steve Price, president of the bank, leading the effort to continue the development of Concordia after several offers to purchase the whole development failed to materialize.

Now, two years after it was taken out of bank owned homes foreclosures, 90 condominium units have been sold, according to Concord Wilshire Realty director of marketing Susan Lucia. Lucia also added that the remaining five buildings of the project are now under construction.

Lucia, whose company handles the marketing and selling of Concordia units, explained that the strategy involves selling the remaining units immediately by reducing their price by as low as $77,000 which is three times less their price during the peak of the real estate market.

Additionally, she said that Florida Community has been investing money into amenities and landscaping which were neglected when the property was still under foreclosure.

On the other hand, while everything is rosy with the Concordia, the future of Florida Community’s other project which it recovered from foreclosure is in limbo.

The unfinished Zoomers Family Amusement Park was taken out of bank owned homes last year after an $11.4 million foreclosure case against developer and owner Ronald Heromin. The bank is still waiting for a buyer to finish the project.