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New Orleans Condo foreclosures? Just not very many condo foreclosures!

    I get asked if there is a lot of foreclosures in the New Orleans Real Estate market for condos.  There are very few that I see and do not know of any in the areas where I am currently working.  There are several reasons for this.  There was very little speculation in this market.  Most people buying were well funded and did not get involved with sub-prime or adjustable rates.  It had more to do with the culture and not willing to gamble on the future increases in rates.  Many condo buyers that I have had paid cash, up to 25% and a large number put a lot of cash down. 

    New Orleans was also a small market and missed a lot of the present issues with mortgages as lenders could not make the amount of money here as elase where.  The new construction of condos just was not great as the market was viewed as much slower than the now bubble markets.  Few Condos were built for low income people since the prices were well above what they could afford in the New Orleans Condo real estate market.

New Orleans Foreclosures

     Most  of the condos in the Warehouse District, Garden District, and French Quarter were not FHA approved for small down-payments and were over the FHA loan limits so you saw very little FHA loans in this segment.  The condos that are having the most trouble selling is units that were conversions in Metairie and Kenner that are marketed for first home buyers.  This segment does not have many buyers since the credit crunch.  Many have become rentals and thus avoid the foreclosure market.

    I also have not had any problem finding loans for people who qualify for loans.  There are a lot of local lenders who are still looking for buyers and were very conservative during the past 4-5 years and stuck to old time lending standards.

     We do see people wanting to sell for a variety of reasons that more more to do with their individual situations and the overall gloomy forecasts of the economy.  These is especially true of people not living in the units, changes in job status and ones that have two notes.  The current climate should make sellers ready to make a deal rather than waiting for an offer that may not come.  Always good to know the “true motivation” of the seller.

Related Articles – Warehouse District TrendsNew Orleans Uptown Condos

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Eric Bouler Realtor
Gardner Realtors
Metairie - New Orleans, La. USA