A Tough Sell?
[ATLANTA, GA]
By Michele Kent
Many condominium associations are adopting stricter standards when it comes to pre-screening new condo owners. They have tightened their ownership requirements in an effort to protect their community's shared interests. This mid-stream change of rules has many owners frustrated as the new regulations edge out potential buyers.
The tighter restrictions fall within the parameters of the legal system, provided they are not violating any laws set up to protect people against traditional forms of illegal discrimination. They are set up to guard the best interest of the shared community, and as long as the guidelines are written into an association's governing documents, condominium associations and boards have the discretion to refuse buyers or renters who do not meet their criteria.
This unofficially branded "credit inequality" (for people who can obtain a loan or meet terms, but not to the degree in which sellers are confident in their ability to sustain their long-term obligations) often prompts condo boards to reject potential owners.
Nationwide, many subprime mortgage borrowers have crumbled under the terms of their financing and lost their homes to foreclosure. According to the South Florida Sun-Sentinel, "boards (can't) foreclose (in these situations) because the new owners have no equity. As a result, the other members of the condo association (have) to pick up the unpaid share of the common expenses, such as water, insurance, pest control, and maintenance."
Trouble on the Inside
It's not just borrowers who are running into trouble. This month, Atlanta-based lender, HomeBanc, filed for Chapter 11 Bankruptcy protection and displaced 1,100 area workers. A contributing factor to HomeBanc's demise was their decision to extend credit to high risk customers. HomeBanc was one of Fortune 500 Magazine's top companies to work for, and now leaves employees jobless as the company is swallowed into an ever-growing financial hole. Homebanc's tale is one shared by a string of many home mortgage companies around the country as they navigate the increasingly rough and tumble state of the mortgage industry.
Shares of America's top mortgage lender, Countrywide Financial, also plummeted today, as the company experienced its biggest one-day drop in twenty years. According to Reuters, "Merrill Lynch recommended its clients sell Countrywide stock, saying the mortgage lender could face bankruptcy if liquidity worsens."
With more widespread attention on borderline predatory lending practices and tougher loan options, people who qualified for home loans just a few short years ago are having a harder time today, even with a similar credit status. While the current state of the real estate market has some owners reluctant to place their homes for sale, Atlanta real estate is still holding its own.
In Atlanta, unlike much of the rest of the nation, sales are holding steady as the building boom picks up after its brief hiatus. Condos in and around metro Atlanta are on the market for an average of 91 days. Atlanta is continuing its fast-paced growth as one of the nation's biggest epicenters and is experiencing a lot of pressure to practice smart growth along the way, good news for condo owners, buyers, and builders, alike.
Smart Growth-Looking Ahead
The Atlanta Regional Commission (ARC) projects Atlanta's ten metro counties will experience a combined surge in growth, leading the population to a swelling 6.9 million by 2030. This leaves both in-town and outlying communities to wonder where they will house and employ the estimated 2.2 million people filtering into the area over the next several decades.
Part of the "Smart Growth" campaign suggests condensed living in contrast to urban sprawl. The benefits of this range from reduced emissions from vehicular travel to conservation of natural resources like the Chattahoochee River. The thick forestry found throughout Atlanta's spot nestled against the foothills of the Appalachian Mountains is often compromised as new developments arise, leaving fewer trees to filter the air, sights, and sounds of the bustling metropolis.
Development is returning toward Atlanta with a new influx of refurbished downtown areas. It's also starting to balance its top-heavy Northern Atlanta growth with further expansions cropping up in Atlanta's southern counterparts. While, according the Atlanta Journal-Constitution, downtown Atlanta posted a loss of residents in the 1980's, and a modest increase of about 100 residents per year in the 1990's, times are changing. Recent statistics show 9,500 people moved into the metro Atlanta between April 2006 and April 2007, the largest residential growth in 35 years.
A quick look around will indicate the reasons why. Smart growth city-segments like reclaimed Atlantic Station, (a once-polluted steel mill on the outskirts of Atlanta) have led the way by completing successful models other builders emulate in their building schemes.
With mortgage companies on a tumultuous ride, and tougher borrowing options in today's economy, both sellers and buyers have their work cut out for them. But with Atlanta's inventories still plentiful, and a plethora of new condominiums on their way to the market, savvy buyers can play their cards right and walk away from this media-termed "real estate crisis" with a sweet deal.
Atlanta Condos
By Michele Kent
Many condominium associations are adopting stricter standards when it comes to pre-screening new condo owners. They have tightened their ownership requirements in an effort to protect their community's shared interests. This mid-stream change of rules has many owners frustrated as the new regulations edge out potential buyers.
The tighter restrictions fall within the parameters of the legal system, provided they are not violating any laws set up to protect people against traditional forms of illegal discrimination. They are set up to guard the best interest of the shared community, and as long as the guidelines are written into an association's governing documents, condominium associations and boards have the discretion to refuse buyers or renters who do not meet their criteria.
This unofficially branded "credit inequality" (for people who can obtain a loan or meet terms, but not to the degree in which sellers are confident in their ability to sustain their long-term obligations) often prompts condo boards to reject potential owners.
Nationwide, many subprime mortgage borrowers have crumbled under the terms of their financing and lost their homes to foreclosure. According to the South Florida Sun-Sentinel, "boards (can't) foreclose (in these situations) because the new owners have no equity. As a result, the other members of the condo association (have) to pick up the unpaid share of the common expenses, such as water, insurance, pest control, and maintenance."
Trouble on the Inside
It's not just borrowers who are running into trouble. This month, Atlanta-based lender, HomeBanc, filed for Chapter 11 Bankruptcy protection and displaced 1,100 area workers. A contributing factor to HomeBanc's demise was their decision to extend credit to high risk customers. HomeBanc was one of Fortune 500 Magazine's top companies to work for, and now leaves employees jobless as the company is swallowed into an ever-growing financial hole. Homebanc's tale is one shared by a string of many home mortgage companies around the country as they navigate the increasingly rough and tumble state of the mortgage industry.
Shares of America's top mortgage lender, Countrywide Financial, also plummeted today, as the company experienced its biggest one-day drop in twenty years. According to Reuters, "Merrill Lynch recommended its clients sell Countrywide stock, saying the mortgage lender could face bankruptcy if liquidity worsens."
With more widespread attention on borderline predatory lending practices and tougher loan options, people who qualified for home loans just a few short years ago are having a harder time today, even with a similar credit status. While the current state of the real estate market has some owners reluctant to place their homes for sale, Atlanta real estate is still holding its own.
In Atlanta, unlike much of the rest of the nation, sales are holding steady as the building boom picks up after its brief hiatus. Condos in and around metro Atlanta are on the market for an average of 91 days. Atlanta is continuing its fast-paced growth as one of the nation's biggest epicenters and is experiencing a lot of pressure to practice smart growth along the way, good news for condo owners, buyers, and builders, alike.
Smart Growth-Looking Ahead
The Atlanta Regional Commission (ARC) projects Atlanta's ten metro counties will experience a combined surge in growth, leading the population to a swelling 6.9 million by 2030. This leaves both in-town and outlying communities to wonder where they will house and employ the estimated 2.2 million people filtering into the area over the next several decades.
Part of the "Smart Growth" campaign suggests condensed living in contrast to urban sprawl. The benefits of this range from reduced emissions from vehicular travel to conservation of natural resources like the Chattahoochee River. The thick forestry found throughout Atlanta's spot nestled against the foothills of the Appalachian Mountains is often compromised as new developments arise, leaving fewer trees to filter the air, sights, and sounds of the bustling metropolis.
Development is returning toward Atlanta with a new influx of refurbished downtown areas. It's also starting to balance its top-heavy Northern Atlanta growth with further expansions cropping up in Atlanta's southern counterparts. While, according the Atlanta Journal-Constitution, downtown Atlanta posted a loss of residents in the 1980's, and a modest increase of about 100 residents per year in the 1990's, times are changing. Recent statistics show 9,500 people moved into the metro Atlanta between April 2006 and April 2007, the largest residential growth in 35 years.
A quick look around will indicate the reasons why. Smart growth city-segments like reclaimed Atlantic Station, (a once-polluted steel mill on the outskirts of Atlanta) have led the way by completing successful models other builders emulate in their building schemes.
With mortgage companies on a tumultuous ride, and tougher borrowing options in today's economy, both sellers and buyers have their work cut out for them. But with Atlanta's inventories still plentiful, and a plethora of new condominiums on their way to the market, savvy buyers can play their cards right and walk away from this media-termed "real estate crisis" with a sweet deal.
Atlanta Condos
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