A Condo Fiasco
Zack Preble auctions his contract for $355,000 condo in downtown Miami. The online reverse auction drops to $215,000 before he gives up. The developer takes his unit and the 70,000 deposit.
I guess not everything has a happy ending... If you are unfamiliar you can read my last article on this fascinating story here . It looks like Zack's last ditch effort, a reverse auction, failed. He could not even recover 5,000 dollars of his 70,000 dollar deposit and finally gave up turning his condo back over to the developer and forfeiting his $70,000 dollar deposit. That is a pretty expensive lesson to learn considering that amount of money would pay off the whole mortgage on my condo in Michigan, with enough left over for a years supply of beer.
The bright side is that it was only a contract with a developer so he still has his credit history in tact, and the $70,000 dollars came as profit from selling his first house during the boom. So it really was a case of easy come...easy go.
It is a shame he never made a final post on his blog Condofiasco.com, however, it is nice to finally see how this story ends.
Friday, August 21, 2009
I finally found out what happened to Miami Condo Fiasco.
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5 comments:
Keep up the good work, I read your blog daily looking for new posts.
Thanks
Keep up the good work. I check your blog daily for new posts.
Thanks for keeping everyone up to date.
Not the best ending, but at least he’s out of it. I think he’ll find a certain amount of freedom in not waking up to that problem every morning.
I see nothing wrong with his ending at all. First, he got a tax free capital gain off his house flip. Secondly, he gets to deduct the loss of the deposit over time and he doesn't have to pay IRS for the income of his discharge of indebtedness. The essence of the problem with real estate is the stupid that got involved in flipping properties and lost. Tough. Cry me an ocean I don't care. The gov is allowing clowns like this to walk away from their stupidity and that is enough we should not have to sit through a chorus of "ain't it awful." If it were up to me, IRS would still be collecting discharge of indebtedness.
It is a fact that waterfront Miami condos are quite expensive; a unit in one of these luxury condominiums can cost you millions.
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