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What is a “distressed property?”

One of my first time condo buyer clients asked me today “hey Lee, what does distressed property mean?”

I answered: “Distressed means a lot of things, but simple, physical distress is vandalism, misuse, abuse, etc. Many distressed properties are physically harmed fixer uppers. In condos, distressed communities are insolvent, poorly led, lacking reserve funds, overwhelmed by rule breaking owners, exceeding the landlord limit of 25% maximum rentals for most bank approvals, and a host of other financial problems that banks will not underwrite with traditional financing guidelines…”

I decided to find the current Trulia graphic for one of the most maligned zip codes in the state of Georgia, 30310 – a zip code that has seen real estate value distress for about 8-10 years, and that has been written about internationally as a “poster child” for mortgage fraud, foreclosure and in some neighborhoods like Pittsburgh – outright abandonment – like 40% + of all houses are boarded up…

Atlanta median sales prices

 

All of this being said – did you read my article yesterday about what an amazing time it is to be an Intown Atlanta buyer?

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