The Daily Soak - September 13

Florida Condo Associations Feeling Cash Crunch

HB.com has covered the financial challenges facing many Florida condo associations in detail. High foreclosure rates, disappearing flippers and condo residents opting to not pay their HOA fees have created serious budget shortfalls in several developments. Sensing a real business opportunity, a savvy Miami start-up is bridging the funding gap for cash-strapped condos. Association Financial Services gives cash advances to associations and takes over both accounts receivable and debt collecting duties. Over 40 Florida condo associations are already on-board with Association Financial, and inquiries are pouring in from other foreclosure-laden states like California. More information is available on the AFS website.


Developer Markets East Coast Homes to Orlando Workers

And you thought you had a bad commute. A Brevard County developer is marketing single-family homes on the East Coast to Orlando commuters. Touted as "A Secure Waterfront Community That's Fit For A King," the 21 luxury homes at Avalon Estates will be built on Merritt Island. Despite being 45 miles from downtown Orlando, the brokers promoting the project describe it as "ideal for Orlando commuters." With the dreaded I-4 corridor traffic and gas prices pushing $5 again, it's tough to imagine potential home buyers wanting to make this trek five times a week. Still, kudos to the developer for a.) breaking ground on an ambitious project, and b.) challenging the way we think about Florida suburbs.


Positive Data: Defaults, Auctions Moderating Nationwide

Forbes puts a positive spin on new data released this week by RealtyTrac. While the number of U.S. homes in some stage of foreclosure rose 12% in August and 25% over August 2007, only 1 in 416 U.S. homeowners are at risk of losing their homes. RealtyTrac CEO James Saccacio credits new legislation in several states that extends grace periods and the increased willingness of many lenders to help underwater borrowers find a home-saving solution. Forbes describes foreclosures as "a necessary prelude to the recovery of the U.S. housing market. As opportunistic buyers snap up fire-sale properties, home prices will eventually stabilize. That should create a buyers market in which inexpensive properties are widely available." Click here for the full RealtyTrac report.