The 129 condo units represent over two-thirds of the 180 units of the Hartford condo complex named Bushnell on the Park. Bushnell failed to pay its monthly loan payments of $75,000 to Wells Fargo Bank since November last year.

In 2002, Bushnell took out a commercial property loan of $12.8 million from Wells Fargo to acquire the condo complex for $15.6 million. In April, when the bank filed the foreclosure case, the amount due was $12.8 million, excluding late charges, interests and other fees, based on the papers filed with the Hartford Superior Court. In subsequent documents filed with the court, the total amount owed has already reached $14.5 million.

Bushnell on the Park was constructed in 1969, as the state and the city spent money to develop downtown Hartford to attract more residents in partnership with private developers. The development efforts have been continuing as newer apartment complexes are being constructed. The newer downtown apartment complexes include the Trumbull on the Park, Lofts at Main and Temple and Hartford 21.

According to Hartford apartment businessman Arthur Anderson, despite its age, Bushnell on the Park has been successful in getting tenants. He contended that the owners had cash flow difficulties and were unable to get loan refinancing. He added that the failure is more of a result of the recession than on the performance of the building.

Reporters could not pinpoint the real cause of the financial difficulties as representatives of various parties refused to divulge further information. Based on city real estate records, Bushnell Regency also failed to pay its taxes for other condo units that it owns and runs in the city. City officials said Bushnell has filed tax appeals.

Meanwhile, Marty Kenny, developer of the nearby Trumbull on the Park, said that the occupancy of the Bushnell complex is high. He contended that the problem may have been driven by the high acquisition cost and the big amount of loan it was taken to acquire the building. He said that operational expenses are also debilitating.

Another Hartford developer, Phil Schonberger, supported Kenny’s analysis. He explained that a lot of commercial loans taken out during the boom were based on rosy projections.

Over 120 Foreclosure for Sale Condos in Hartford is a post from: Foreclosure Homes Investing

According to real estate agents, the high number of REO properties on market included several horse properties. They added that several horse farms in Greater Hartford area have been foreclosed while some are put on the market as short sale, which means that the sale price is less than the total mortgage owed by the current owner.

Adding to the problem facing owners of horse farms is the decline in property value. Most of these horse properties, which consist over 2 acres of land, have fallen in market value, albeit at a slower pace than other housing properties.

Real estate agents estimated that a horse farm may have an average value of between $300,000 to millions. However, the growing number of REO properties has pulled down prices 3 to 5 percent.

Prudential Connecticut Realty agent Kevin Green noted that to begin with, there is a limited number of buyers for horse farms and with the growing recession and foreclosure crisis, demand for horse properties has even whittled down.

He added that horse properties on the market for sale are not being sold as quickly as their owners hope to. Agents said that there are more horse properties available today than any other time in the housing market in Connecticut.

Meanwhile, real estate agents said that several factors influence the salability of a horse farm: price and location. However, unlike in traditional real estate, a horse farm that is located near an open land is more attractive to buyers.

RE/MAX Flagship agent Tammy Lucier said that land is a major criterion for selling a horse farm, followed by riding proximity without having to use a trailer for horses.

Meanwhile, Lucier pointed out that unemployment in Connecticut is greatly affecting owners of horse farms. She explained that there are more horse farms on REO properties listings because operating and maintaining horses are quite expensive.

And if horse owners lost their job, it could mean a death sentence to their properties especially if their farms have 10 horses or more. And compounding the problem is the reluctance of buyers to move away from the place where they have established a life surrounded by horses.

Rising REO Properties Affecting Horse Farms in Connecticut is a post from: Foreclosure Homes Investing