Puerto Vallarta Mortgage Defaults

This was recently posted on Mish’s excellent blogsite. One in eight homeowners in the US are now behind on their payments or in foreclosure? 

The Mortgage Bankers Association noted that a record 12%, or 1 in 8 homeowners, in the US are now behind on their payments or in foreclosure. 10.6% of the mortgages in Florida are now somewhere in the process of actual foreclosure. (My seatmate here on the flight says the prices on the condos where he lives are now back to 1998 levels. It would be scary, he said, if you had to sell. There are new developments that only have 10% actual occupancy, as the bulk of the condos were bought for speculation. Now those 10% of buyers are having to shoulder all the fees for upkeep. Nobody will buy, because the upkeep costs can be more than the mortgage. It is a vicious cycle.)

Florida, Southern California, Phoenix and Las Vegas are in a lot worse shape than Puerto Vallarta. For the most part, people own their homes and condos here without holding any mortgages against them, they own them free and clear. There have been only a few foreclosures in the whole region. And there are few, if any projects that where 10% of the owners are stuck with paying 100% of the fees for upkeep. What a mess.

Tehnorati: vallarta real estate

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2 Responses to Puerto Vallarta Mortgage Defaults

  1. Clay Lacy says:

    I heard a rumor of a recent $125 million dollar sale of 100 KM of undeveloped coastline along Puerto Vallarta towards Costa Alegre. Can you verify it? Buyer is supposedly a Chinese developer based in the US.

    Any new investment in the past 6 months, especially during the lowest of low seasons would be welcome news.

    • johnlifestyles says:

      There have been a couple of very large deals in the works for some time on the coastline south of Vallarta known commonly as Costalegre, one has closed on their initial first few phases of land purchase and another that is supposed to be closing this summer. And the size of the deals are close to the number you mentions. From what I understand, the deals are coming out of New York/Europe and are not from a Chinese developer based in the US. What’s been interesting is that with all that’s been going on the past year, it hasn’t seemed to fazed the investors in these large purchases. They have continued to move forward, obviously thinking long term. There has been no talk, at least as far as I know, of moving forward with any actual developing at this time. Which seems like a smart move.

      John

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