The Associated Press: New condo loan rules could hurt distressed areas: "Under the new regulations, Fannie Mae will reject any mortgage for a condo buyer if more than 15 percent of the other owners are delinquent on their association fees. What's more, Fannie Mae will only guarantee mortgages in new or newly converted condo developments if 70 percent of the units are sold or under contract.
Critics say the rules, which went into effect this month, could force some new developments into bankruptcy because the 70-percent requirement will be hard to reach if buyers can't get a loan."
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The noose is tightening around the neck of many a condo development. It is one thing after another. Renters and assessment delinquencies are becoming serious problems as lenders and insurance companies get concerned about the future of condominiums.
2 comments:
Time to get rid of the plague known as "condominiums" - another favorite vehicle of the new urbanism proponents. They are nothing but ticking time bombs for anyone who buys one.
Hopefully, economics will put an end to federal subsidies for these things.
"Time to get rid of the plague known as "condominiums" - another favorite vehicle of the new urbanism proponents. They are nothing but ticking time bombs for anyone who buys one."
This goes for ALL CID housing. CIDs and their corporate HOA governments are a scourge. If this current housing depression brings these things down, it would have done much good.
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