Foreclosure buy/flip devaluation threat in small condo

**mattyv** · 02-28-2008, 04:31 PM

I live in a 16 unit condo building. There is one resident that has been delinquent on his maintenance fees for year and recently i heard the bank might be foreclosing on his unit. Furthermore I heard someone else was looking to buy it at almost 30-40% of it's value and then flip it for a price much less than the rest of the units could go for in the building.

We (the residents) don't want this to happen because of the threat of this unit devaluing the rest of the units in the building. Is there anything we can do? Does anyone have any ideas?

It's a condo, not a co-op so I don't think the condo board can just disapprove of the buyer. How is it possible to prevent this.

Your help is greatly appreciated.

**Norcalkid** · 02-28-2008, 05:36 PM

For 30-40% I would contact the owner and might buy it myself.

**Codythebest** · 02-28-2008, 07:57 PM

Originally Posted by Norcalkid

For 30-40% I would contact the owner and might buy it myself.

I agree.
However, something like this does not devaluate the condo's FMV.
The proof is the buyer will pay 30%-40% BELOW FMV and will flip it at a price BELOW FMV. So, there is still a higher FMV.
A Real Estate agent doing a CMA will definetely tell this in his CMA...

**mattyv** · 02-28-2008, 08:10 PM

Thanks for the advice. I was thinking that myself.

**Codythebest** · 02-29-2008, 05:21 AM

Beside, a FMV is what a willing, ready and able buyer will pay for the unit. But also when a seller is ok to sell it. Knock on 2-3 doors and make verbal offer and see the numbers...The average will be a FMV...