I've seen it and you probably have, too--A very nice condo community with a LOT of listings for sale. Overpriced listings. They may not technically have been overpriced a year ago but they are now because one person got behind on their payments and either lost the property or sold as a pre-foreclosure within that community. Now, ALL the other (smart) Sellers follow suit and basically give their property away. Some owners hold out, don't drop the price, and don't even get a single showing. The other/smarter Sellers DON'T want to drop their condo unit's price but they do.
The owners that are in trouble with their mortgages HAVE to sell b/c it's either that to keep their credit score basically intact or lose the propety altogether and have it go into foreclosure, which will of course hurt their credit score... There are MANY, MANY condo communities where this is happening/has happened in the Orlando, Florida area. Without naming names, one particular community I'm thinking about has 84 active listings that are 2 and 3 BR units. 84! They range in price from almost $300,000 to about $185,000. The ones in the $180,000s are not selling, either. There is one that is currently under contract; it was listed at $150,000! These are units that probably sold to the current owners for the low $220,000s. There have been TWO units that have sold since June of this year--for $190,000 and, more recently, for $173,000. The only way to get any Buyer to even LOOK at them is to drop the price--and drop it a LOT. OUCH!
Well, I talked to an owner of a condo in this very nice community who wants to dump the unit and my gist was the same to him as to MANY other owners who bought in the last few years during the condo craze. The basic idea is: You overpaid for your vacation/2nd home/investment property (and too bad that you chose to buy a condo--they are the first to lose value when the market shifts), there are X # of pre-foreclosures and foreclosures in your condo community already, you can't get even close to what you need to break even (never mind making a profit!), it's not your primary residence, you have other assets you can tap into to BRING money to the table to dump your property, you probably WON'T qualify for a hardship for a short sale (maybe; but that's a BIG maybe), you probably have a MONGO-huge pre-payment penalty, SO the long and the short of it is I probably can't help you. Sorry. It's basically as if this guy (and many others) just flushed $50,000 easy just down the toilet. Seriously. I can't put it any more plain than that. So, it's either for him to put up (the money) or lose it (the property and his excellent credit score). OUCH! Now, I was a bit more tactful (I hope) and I really hope I can help this very nice guy out but, man, what else can we say to someone in this unfortunate situation? Do you have any other ideas?