FDIC Approves Condo Sale At $1.7 Million Less Than Owed

The Federal Deposit Insurance Corp – as receiver for the failed Washington Mutual Bank – has accepted at least $1.7 million less than it is owed on a $3.3 million mortgage secured by a waterfront condo in the wealthy Miami enclave of Fisher Island, according to a new report from CondoVultures.com.

The FDIC – along with Washington Mutual Bank’s suitor JPMorgan Chase Bank – sold the nearly 3,600-square-foot condo built in 2004 for $1.65 million – or $461 per square foot – in a transaction recorded on June 24, 2011, according to Miami-Dade County records.

The Fisher Island transaction is one of 17 South Florida condo units owned by various banks to be resold for more than $400 per square foot in the tricounty region in the first half of 2011, according to an analysis by the licensed Florida brokerage Condo Vultures® Realty LLC.

The Fisher Island resale ranks as the highest total price paid for a bank-owned unit in Miami-Dade, Broward, and Palm Beach county between January and June 30 of this year, according to the analysis based on Florida Realtors association data.

In the FDIC deal, the buyer, Fisher 2012 LLC with Francisco Mazzarella of Miami, purchased the ultra-luxury, seven-year-old unit in the 5100 Bayview at Fisher Island condominium with views of Virginia Key, Greater Downtown Miami, and the Port of Miami.

The Fisher Island unit resold at a price slightly less than the 2010 assessed value of nearly $1.8 million. A year earlier in 2009, the unit had an assessed value of $2.3 million, according to the Miami-Dade County Property Appraiser’s Office.

The former Washington Mutual Bank – which was shut at the peak of the U.S. financial crisis in September 2008 – had filed to foreclose on the Fisher Island unit some six months earlier in April 2008, according to Miami-Dade County records.

At the time of the foreclosure filing, Washington Mutual Bank had provided a loan – following a modification – of $3.23 million dating back to October 2005, according to Miami-Dade County records.

Bank regulators sold off the “balance sheet” of the $307-billion Washington Mutual Bank to JPMorgan Chase on Sept. 25, 2008 for $1.9 billion. The FDIC was named as the receiver, according to a FDIC statement.

In April 2010 – two years after the initial foreclosure filing – Miami-Dade Circuit Court issued a final foreclosure judgment for $3.35 million comprised of principal, interest, insurance, taxes, court costs, and attorney fees, according to the order signed by Miami-Dade Circuit Court Judge Lester Langer.

Washington Mutual Bank with the FDIC as the receiver won the ensuing foreclosure auction with a bid of $902,000 and was ultimately issued a certificate of title conveying ownership of the unit in August 2010, according to Miami-Dade County records.

Washington Mutual Bank put the property up for resale with an asking price of $1.7 million in March 2011. A couple of months later in May 2011 the property went under contract before transacting in June 2011, according to Miami-Dade County records.

This is a list of the top 10 highest priced bank-owned condos to sell in South Florida in the first half of 2011 compiled by Condo Vultures® Realty based on Florida Realtors association data:

Condo Vultures® LLC is a real estate consultancy and marketing company based at 1005 Kane Concourse, Suite 205, Bal Harbour, Florida, 33154. You can reach Condo Vultures® LLC at 800-750-0517.  

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