Parks at Piedmont is a Lovely Condo Community in Gainesville, VA. Can YOU Buy There? The answer is anything but obvious.
You see, Parks at Piedmont condos were constructed by Engle Homes. And sadly, the construction hit the tail end of the boom, and languished in the beginning of the bust. Engle Homes declared bankruptcy without finishing two pad sites that would house twenty more condo units.
There are many short sales and foreclosures that hit the market in this community. Here's where a first time buyer runs into problems buying these fantastic condos.
Investor ratios that are allowable for HUD condo certification are thrown out of proportion by the number of absentee owners. At first these were banks that were holding foreclosures. And as a result of this limitation that was a no go for any FHA buyer, cash buyers who were primarily investors, have swooped in and kept these numbers out of whack for HUD to be able to certifiy the development.
That is not the only issue.
With the bankruptcy of the builder leaving the development unfinished, and with fewer condo owners paying dues into the association, AND the increasingly number of delinquent homeowners who are facing foreclosure not paying condo dues, even a conventional loan buyer putting 20% down can run into financing issues. The current condo dues delinquency rate is 19% and increasing at a rate of approximately 1% per week! What is allowable for conventional underwriting guidelines is 15%.
So who is the ideal buyer for Parks at Piedmont condos? Definitely cash buyers but how many first time buyers have just under $200,000 lying around in cash? None that I know. So the problem persists in this neighborhood. An ideal place for a first time buyer, but nearly impossible to purchase.
I am currently representing conventional loan buyers seeking an override from the loan underwriters on ths 15% maximum delinquency rule. If they can get that override, there may be hope fo conventional buyers as one more home owner paying their condo dues will help to offset the delinquerncy rate in the challenged community of Parks at Piedmont. I'm planning to have encouraging news for Parks at Piedmont buyers by week's end.